The Erawan Group announces new expansion strategy, including diversification into economy hotel sector with Accor’s Ibis brand
The Erawan Group signals its intention to tap the forecast surge in budget and business travel to Thailand, particularly from China and India. The Erawan Group is to become the stock market listed “proxy” for the Thai hospitality sector, covering all main market segments.
An equity capital issue will provide funding support for the expansion. The Erawan Group PLC (“Erawan”) has signed a memorandum of understanding with The Accor Group (“Accor”) to build a network of up to 10 economy hotels under the Ibis brand in six major destinations in Thailand: Bangkok, Pattaya, Phuket, Koh Samui, Chiang Mai and Krabi.
The intention is for six hotels to be built by 2008 and up to a further four to be completed by 2010. Each property will have around 200-250 rooms and will cost Baht 300-400 million. About The Erawan Group Plc.
The Erawan Group Plc., listed on the Stock Exchange of Thailand, owns two of Bangkok’s leading 5-star hotels – the Grand Hyatt Erawan Bangkok and the