Hyatt Hotels Corporation is betting big on the Thailand market and its first hotel under the Park Hyatt brand in Thailand is already under construction and is scheduled for a 2014 opening. The Park Hyatt Bangkok will come up in a mixed use commercial development which is being built by Central Retail Corporation on Wireless Road. The location which is close to Central Chidlom is expected to make it a landmark for high end foreign travelers. Larry M.K. Tchou, managing director of Hyatt International Asia Pacific, clarified that the rates at the new hotel will be much higher than the current 5 Star rates in Bangkok as it will be positioned as one of the top hotels in the capital city.
The project cost for the hotel is estimated at 5 billion baths. The guest rooms will be large at about 50 square meters and the room rents is expected to go beyond $300 a night. The current average rate for 5 Star rooms in Bangkok hovers between $90 and $100 mainly because a price war has been going on between the top hoteliers. The management is banking on the location of the hotel at the prime location among the embassies to make it competitive with other hotels.
Hyatt Hotels has increased its focus on the Asian market. In fact it is their main focus at the moment followed by the US and Europe. The high end market in Asia is not limited to Japan any more as China and South Korea with their fast growing economies have created affluent citizens in large numbers who have a lot of money to spend. As per the research based estimates the Park Hyatt will have 60% corporate customers whereas meeting and incentive customers and leisure customers will make up 10% and 30% respectively. The new hotel is projected to achieve 70% occupancy in its second year of operation. Hyatt Hotels are already in negotiation for the second Park Hyatt in Thailand at Phuket.