Owner of the Dhara Dhevi Chiang Mai sells business

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.

FREE DAILY NEWSLETTER

Like this story? Subscribe to IHIF!

The hospitality industry turns to IHIF International Hotel Investment News as the must-read source for investment and development coverage worldwide. Sign up today to get inside the deal with the latest transactions, openings, financing, and more delivered to your inbox and read on the go.

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. 

 

Suggested Articles

Accor launched a €300m share buyback as part of its plans to return €1bn to shareholders over the next 24 months.

Apex Hotels reported full-year revpar growth of 2.4%, driven by an investment of £9m in its estate.

The UK’s hospitality sector needs to do more to promote sustainability, according to the latest UKHospitality/CGA Future Shock Report.