K2 Land, a local metal manufacturer and property developer, will spend more than 2 billion baht to open what it bills as Thailand’s first fashion hotel in Bangkok’s North Sathorn area.
Called Mode Sathorn by Siam@Siam, the hotel has been renovated from a five-star condominium on which construction was halted before its internal building system was installed.
K2 Land spent around 800 million baht for the land and building purchase and 1.2 billion to renovate it.
Managing director Nirut Ngamchamnanrits said the company is interested in the hotel business since it is familiar with the construction business. It already opened a golf course in Bang Na.
The hotel will have 36 floors including the rooftop, with 200 rooms covering six types. It will also feature six restaurants, two meeting rooms, and five spa and massage rooms, with unique Oriental and Western designs. The average room rate will be around 3,000 to 3,600 baht per night.
Mode Sathorn is scheduled to open in April 2012 and it will be managed by a local hotel chain operator, Siam@Siam, which currently runs Siam@Siam Design Hotel & Spa in Bangkok and Crown Lanta Resort and Spa in Krabi.
Mode will have easy access to the central business district, sightseeing, and shopping centres, and Kla Kitchakarn, managing director of Siam@Siam Design Hotel & Spa, aims to have at least a 50% occupancy rate, breaking even within 10 years.
“I’m still confident in Bangkok’s hotel business, which has great opportunity for hotels with exotic designs,” he said.
Siam@Siam said its management business accounted for 3% of its total revenues of 260 million baht last year. The company expects its total revenue will climb to 307 million this year. It plans to develop another two hotels in Pattaya and Phuket over the next two years.