LUXURY DEVELOPMENT PROJECT: N-Park confident of financing
Needs Bt1.2 billion to build 33-room hotel to be managed by Aman Resorts
Wichit Chaitrong
Cash-strapped Natural Park Plc has yet to finance the planned development of a luxury hotel on the banks of the Chao Phya River.
“It will take about 45 days to arrange the finances,” managing director Sermsin Samalapa said, when asked where Natural Park was going to find cash for the Bt1.2-billion project.
The developer now has most of its assets for sale, after a share-swap plan with Sophonpanich-led City Realty collapsed. Natural Park’s financial troubles followed a rapid investment programme.
Sermsin, Natural Park and partners yesterday signed a contract with the Treasury Department to transform a heritage site - a former Customs House - into a boutique hotel to be known as Aman Resort, Bangkok.
“We had to sign a contract before we could proceed with the financial arrangements,” Sermsin said. Both local and international institutions had shown interest in participating in the project, he said.
Natural Park’s latest plans raised eyebrows among market observers: How was it going to find the funds to develop the new hotel? And how was a hotel with just 33 rooms ever going to pay for itself?
Natural Park won a bid for the property by offering returns of Bt1.6 billion over 30 years to the Treasury Department. The company yesterday paid Bt128.3 million up front to the department and plans to open the hotel within two years.
Sermsin said its partner Aman Resorts could bring in super high-end customers from North America, Europe and Asia. With average room rates of US$800 (Bt31,500) per night, the hotel would break even within 10 years, he said.
Aman specialises in managing hotels on heritage sites and is already successfully doing so in Indonesia and Cambodia, he said.
Sermin said the hotel would generate Bt220 million in its first year and that would increase to Bt260 million in the second year and Bt300 million in the third. That is based on the assumption its occupancy rate will be 50 per cent in the first year, 55 per cent in the second, and 60 per cent in the third.
The Aman group operates 17 hotels in Asia, North America and Europe. It also owns Amanpuri Resort in Phuket.
Greg Seirois, Aman group executive director, said the new resort would help revitalise Bangkok as an attractive business and holiday destination. Asked how the planned hotel could compete with the well-known Oriental Hotel, he said Aman Resort Bangkok would complement other hotels on the river.
Sermsin said Natural Park would sell 22.5 million shares in Finansa Plc this month. “We haven’t finalised this, but we think it will happen this month. We are in talks with a number of foreign investors,” he said.
Natural Park recently announced plans to bring in Bt1.1 billion from selling not more than 725,000 shares of BMCL to Ch Karnchang and Bangkok Expressway.
Source : THE NATION : May 11, 2005
Needs Bt1.2 billion to build 33-room hotel to be managed by Aman Resorts
Wichit Chaitrong
Cash-strapped Natural Park Plc has yet to finance the planned development of a luxury hotel on the banks of the Chao Phya River.
“It will take about 45 days to arrange the finances,” managing director Sermsin Samalapa said, when asked where Natural Park was going to find cash for the Bt1.2-billion project.
The developer now has most of its assets for sale, after a share-swap plan with Sophonpanich-led City Realty collapsed. Natural Park’s financial troubles followed a rapid investment programme.
Sermsin, Natural Park and partners yesterday signed a contract with the Treasury Department to transform a heritage site - a former Customs House - into a boutique hotel to be known as Aman Resort, Bangkok.
“We had to sign a contract before we could proceed with the financial arrangements,” Sermsin said. Both local and international institutions had shown interest in participating in the project, he said.
Natural Park’s latest plans raised eyebrows among market observers: How was it going to find the funds to develop the new hotel? And how was a hotel with just 33 rooms ever going to pay for itself?
Natural Park won a bid for the property by offering returns of Bt1.6 billion over 30 years to the Treasury Department. The company yesterday paid Bt128.3 million up front to the department and plans to open the hotel within two years.
Sermsin said its partner Aman Resorts could bring in super high-end customers from North America, Europe and Asia. With average room rates of US$800 (Bt31,500) per night, the hotel would break even within 10 years, he said.
Aman specialises in managing hotels on heritage sites and is already successfully doing so in Indonesia and Cambodia, he said.
Sermin said the hotel would generate Bt220 million in its first year and that would increase to Bt260 million in the second year and Bt300 million in the third. That is based on the assumption its occupancy rate will be 50 per cent in the first year, 55 per cent in the second, and 60 per cent in the third.
The Aman group operates 17 hotels in Asia, North America and Europe. It also owns Amanpuri Resort in Phuket.
Greg Seirois, Aman group executive director, said the new resort would help revitalise Bangkok as an attractive business and holiday destination. Asked how the planned hotel could compete with the well-known Oriental Hotel, he said Aman Resort Bangkok would complement other hotels on the river.
Sermsin said Natural Park would sell 22.5 million shares in Finansa Plc this month. “We haven’t finalised this, but we think it will happen this month. We are in talks with a number of foreign investors,” he said.
Natural Park recently announced plans to bring in Bt1.1 billion from selling not more than 725,000 shares of BMCL to Ch Karnchang and Bangkok Expressway.
Source : THE NATION : May 11, 2005
