Dusit Thani's shareholders will invest $1.40 billion in a mixed-use development project with Central Pattana in Bangkok. Construction will start in July on the company's plot between Silom and Rama IV, where its flagship hotel Dusit Thani Bangkok also stands.
The new development will include a hotel, a residential building, offices and retail space.
At its annual general meeting of shareholders, the hotel group said its business performance was poised remain strong during development of the project thanks to its efficient financial structure. This will allow the company to profit from the investment in the early stages of its development.
In preparation for the new build, the company will begin development on land next to Dusit Thani Bangkok, next to Rama IV Road. Meanwhile, the Dusit Thani Bangkok will continue running until mid-2018. The new hotel will be complete in 2021 while the whole project will be complete by 2024.
The announcement follows Dusit International’s Oct. 2016 decision to expand its business beyond the hospitality industry. The company expects its non-hotel business will contribute 10 percent of total revenue within the next five years.
According to Dusit Group’s CEO Suphajee Suthumpun, the group’s goal is to raise its revenue contribution ratio from both domestic and international operations to 50:50 within the next five years. It also plans to double the number of hotel rooms under its portfolio, raising it to 14,000.
Dusit operates 26 hotels in eight countries, including Dubai, the Maldives and the Philippines. The company owns 10 of these while 16 are under management agreements. That total will increase to 70 within the next five years as the group plans to expand its presence into Europe.