Absolute Hotel Services Co. is eyeing the purchase of at least 20 hotels abroad
1Absolute Hotel Services Co, a local hotel management firm, is eyeing the purchase of at least 20 hotels abroad in the next five years.
Apart from Absolute Hotel Services, a venture fund with US$100 million in assets is already committed to be one of the key stakeholders. The company will raise funds from other sources in London as well.
Chief executive Jonathan Wigley said Absolute is expected to list on the London Stock Exchange.
?It?s a big change for Absolute this year. We will start buying existing properties mainly in Southeast Asia around the third quarter,? he added.
At the present, Absolute operates 22 hotels ? 14 in Thailand and eight elsewhere.
It will add 40 new ones to its portfolio this year.
Mr Wigley said if the company could acquire 20 properties in the next five years, it would have more than 80 hotels in its portfolio. Its brands include U Hotels & Resorts, Eastin Hotels, Eastin Easy and Estin Residences.
Of its total revenue, 70% comes from Southeast Asia and 30% from India and the Middle East. Its revenue proportion will become 60:40 by 2015.
For the hotel management business, Absolute focuses on established destinations in Thailand like Phuket due to a strong airlift.
Mr Wigley said Thailand?s tourism relies on international demand while other countries such as Indonesia and India can survive on the domestic market.
Click 1 to read more.