Asset World Corporation, Thailand’s leading lifestyle real estate development company, announced its acquisition of 12 real estate projects in hospitality and mixed-development under the 2019 Share Purchase Agreement. The acquisition will immediately add 989 keys to the portfolio and more than 2,500 keys in the pipeline together with retail developments.
Mrs. Wallapa Traisorat, Chief Executive Officer and President, Asset World Corp Public Company Limited or AWC said,
“With our strong commitment to building a better future and marking Thailand as a world-class tourism and lifestyle destination while steering a continuous and sustainable growth, we proceed with the acquisition of businesses that own Group 3 properties of the company under the 2019 Share Purchase Agreement. The acquired businesses consist of four midscale to upper-upscale hotels that are currently operating, including Bangkok Marriott Hotel The Surawongse, Holiday Inn Express Bangkok Sathorn, Phuket Marriott Resort and Spa, Nai Yang Beach, and Hua Hin Marriott Resort and Spa, as well as eight hotels and mixed-use properties currently undergoing renovation or development. With a total investment value of over 26.229 billion baht(1), the acquisition is set to enhance the capacity and diversity of our portfolio and bring an accelerated growth in performance within 5 years.”
The company’s operating Group 3 hotel assets are outstanding both in terms of operational efficiency and location. Bangkok Marriott Hotel The Surawongse is an upper-upscale hotel with 303 rooms, and the first Marriott accommodation in Bangkok that comprises both hotel rooms and new concept of fully equipped executive apartments. Bangkok Marriott Hotel The Surawongse successfully ranked first among all Bangkok hotels on TripAdvisor within the first 8 weeks of its operation while it was still in the ramp-up period. The success led to a significant growth in performance with the revenue per available room (RevPAR) Index of 149.4% for the third quarter of 2019. Located at the center of Sathorn and Silom, Holiday Inn Express Bangkok Sathorn is a mid-scale hotel which accommodates tourists and business travelers with 184 guest rooms. The hotel won the Loved by Guests 2019 title from Hotels.com, an award indicating a high level of guests’ satisfaction of the hotel.
In parallel, the operating Group 3 assets outside Bangkok can cater to the lifestyle needs of travelers as well. Phuket Marriott Resort and Spa, Nai Yang Beach, is an upscale beach resort located in a tranquil and private setting with a total of 180 guest rooms and pool villas. A popular venue for weddings, the hotel won the Best International Wedding Hotels in the World 2019 from the International Hotel Awards and captured the RevPAR Index of 145.2% for the third quarter of 2019. Hua Hin Marriott Resort and Spa is an outstanding upper-upscale resort with 322 modern rooms, five regular swimming pools and a loop swimming pool. The hotel won the Best Luxury Resort Hotel Asia Pacific 2019 award from the International Hotel Awards and showed the RevPAR Index of 171.6% for the third quarter of 2019.
Group 3 properties also consist of 8 hotels and mixed-use properties currently undergoing renovation or development with a total of more than 2,500 rooms. One of the highlight projects is AWC CENTER PATTAYA, a new mega mixed-use project at the heart of Pattaya City consisting of JW Marriott Hotel The Pattaya Beach Resort and Spa and Pattaya Marriott Marquis Hotel with a total of 1,298 rooms. Also included in the complex is Aquatique, Pattaya’s new iconic destination, a retro-futuristic structure that is an all-in, must-visit lifestyle exploration and adventure mecca. Aquatique will reveal the hidden tales and the secrets of the great sea. While Banyan Tree Jomtien Pattaya Hotel, a hidden sanctuary that is a short stone’s throw away from Bangkok, is set to become a luxury resort by the Jomtien beach with a total of 150 rooms and villas, and several future projects.
The acquisition of Group 3 assets will make Asset World Corporation become the largest hotel owner in Thailand for the midscale and higher segment based on the total number of hotel keys. It will also help strengthen the company’s portfolio in hospitality businesses in order to meet the diverse needs of customers. It is expected that, with this acquisition Asset World Corporation will have a total of 27 operating hotels and more than 8,500 keys after completion under the management of leading international hotel brands, namely Marriott International Inc., Hilton, Banyan Tree, Melia, IHG and Okura, and achieve over 290 million Loyalty Program members. Together with the mixed development projects, we are creating the experience destinations in both Bangkok and Pattaya and emphasize our vision in building a better future for all stakeholders and communities as a whole.
Remark: (1) The acquisition price of asset group 3 will be adjusted according to the audited financial statements for the year ended 31 December 2019 and the factors from net working capital.