LH Mall & Hotel sets aside B16bn for developments
20 September 2018
LH Mall & Hotel Co (LHMH), owner of Grand Centre Point hotels and Terminal 21 malls, is set to spend 16 billion baht to develop hotels and shopping complexes over the next four years.
Of the total, 4 billion baht will go towards a new Terminal 21 on Rama III Road near the Montien Hotel Bangkok.
The company will rent 15 rai from a landlord for 30 years to build the new Terminal 21, with construction to start next year. The mall is expected to open within three years.
The remaining 12 billion baht will go to develop 1-2 projects a year, be they mixed-use or individual hotels and shopping complexes.
The company has several vast plots awaiting development.
Chief executive Suwanna Buddhaprasart said apart from the 16-billion-baht budget, the company has set aside a further 3 billion baht to buy land for future development.
During 2019-22, the company will develop two hotels and two shopping complexes in Bangkok.
Managing director Prasert Sriuranpong said the company plans to officially open Terminal 21 in Pattaya with a floor area of 180,000 square metres on Oct 19 and open the Grande Centre Point Pattaya hotel, a 32-storey five-star hotel, on Oct 26.
Terminal 21 Pattaya is a six-floor complex containing a cinema, a supermarket, the Pier 21 Food Hall and more than 500 shops. Terminal 21 Pattaya can be reached through three main accesses North Pattaya Road, Pattaya 2nd Road, and Phettrakul Road.
On the same plot, Grande Centre Point hotel will be constructed with 396 rooms, a water park sized over 6,000 square metres, and function rooms.
“We strongly believe in Pattaya’s high potential for investment and its reputation as a genuinely world-class resort destination with unique natural resources,” Mrs Suwanna said.
She said Pattaya is the perfect destination to invest in thanks to industrial parks that create an opportunity for the hospitality business, tourism sites, hospital, entertainment, and arts and culture. Some 17 million Thai and foreign tourists visit Pattaya each year.
Kitti Worrabanpott, the company’s other managing director, said Grande Centre Point Hotel, has 396 rooms.
The company targets the occupancy rate at Grande Centre Point Pattaya to reach 88%. Customers are expected to be mostly from Asia, including China, Japan, Hong Kong, Korea, Singapore and Taiwan. The group also expects to reach more customers from the Middle East and the US.
LHMH operates four hotels under Grande Centre Point chain, comprising Grande Centre Point Ratchadamri, Grande Centre Point Ploenchit, Grande Centre Point Terminal 21 and Grande Centre Point Sukhumvit 55, totalling 2,100 rooms.
With its active plans, the company expects to double the number of hotel rooms to 4,200 within the next four years.
Mrs Suwanna said LHMH revenue was 3.7 billion baht last year. Of the total, 60% came from hotels and the remaining 40% was from the retail business.
The company expects total revenue to reach 5.3 billion baht this year.
Of the total, about 3 billion baht will come from the hotel business and the remaining 2.3 billion will come from retail businesses such as Fashion Island and Terminal 21.
With the following plan, LHMH’s revenue is expected to reach 8 billion baht with equal proportions generated by hotel and retail.
Mrs Suwanna said, “Our true purpose is to build up long-run sustainability and have LH Mall & Hotel Co registered on the Stock Exchange of Thailand.”
Source: https://property.bangkokpost.com/news/1543222/lhmh-sets-aside-b16bn-for-developments
