SET-listed Inter Far East Energy Corporation spent 2.46 billion baht ((around US$68 million) to acquire the Dhara Dhevi Hotel Chiang Mai Group, which includes Dhara Dhevi Hotel Co., A.P.K. Development and Dhara Dhevi Co.
The group's portfolio includes the Dhara Dhevi Chiang Mai, a member of Preferred Hotels & Resorts.
Of the total investment, 1.6 billion baht went to the equity, and funding came from cash flow and bank loans. IFEC used its wholly owned subsidiary Inter Far East Cap Management to hold the shares in DDVG, while subsidiary Inter Far East Thermal Power Co. bought the six-star hotel's liabilities. IFEC chairman and executive director Wichai Thavornwattanayong told the Bangkok Post that the Dara Dhevi acquisition was "worthwhile" as the property valuation is estimated at 4 billion baht.
IFEC expects the acquisition of the Dhara Dhevi Chiang Mai Hotel will generate an additional 600 million baht in net profit next year. About 200 million of this will come from hotel operations and 400 million will be extra gains from debt restructuring.