All Seasons Property Co has outlined a five-year plan to renovate All Seasons Place and the Conrad Bangkok Hotel with an estimated budget of 1 billion baht.
The first phase of renovation will start with the eight-year-old luxury development’s residential zone, expected to be completed by mid-2012, said managing director Frankie Bao.
The developer will start renovating three office buildings, outdoor landscaping and retail space next year. For the Conrad Bangkok, the renovation plan is being worked out by All Seasons Property and the hotel’s management team and all work will be completed by 2013.
“We want to maintain our property value, which is located in a great location of Bangkok. The renovation will help increase our competitiveness amid the heavy competition from other office and hotels,” he said.
At present, All Seasons Place has three office buildings for rent: M Thai Tower with 27 floors and 30,000 square metres, Capital Tower with 27 floors and 30,000 sq m, and CRC Tower with 52 floors and 63,000 sq m. Around 90% of total office space is occupied.
Office rents make up the lion’s share of revenue to All Seasons Property, followed by All Seasons Place retail centre with 150 shops on 13,000 sq m.
Mr Bao said revenue from the hotel operation was modest because of Bangkok’s sluggish tourism business in the past two years due to local political problems and a hotel oversupply.
After the renovation, the company hopes the hotel will be able to increase its average room rate to 6,000 baht per night in the next three years from between 4,500 and 5,000 baht currently.
The Conrad Bangkok has a 60% occupancy rate at present, up from 50% last year, and expects the rate to surpass 70% in 2012.
“The Bangkok hotel business is very tough but we think the new supply would be gradually absorbed by 2013,” he said.
The company this week launched its ASP Club Card together with a campaign to celebrate its eighth anniversary to thank its business partners.
ASP Club is created as a platform of privileges with discounts up to 30% across the All Seasons Place complex including the Seasons Spa. Members will be entitled to use the ASP Club Lounge as well.