The opening of Bluport Resort Mall has intensified competition in Hua Hin's retail market.
Developed by Hua Hin Asset, a joint venture between The Mall Group and Proud Real Estate owned by the Liptapanlop family, the project is located in the town centre with an investment of 5 billion baht.
The Hua Hin project is the first one the group has planned to expand to other major tourist cities such as Phuket.
Supaluck Umpujh, a vice-chairwoman of Hua Hin Asset, said the company spent two years developing the project and despite fierce competition in the market, it believes in the project's potential.
"The project is projected to generate total revenue of 2.5 billion baht and we should be able to break even within seven years," said Ms Supaluck.
"We are the first big retailer in Hua Hin. You may have seen some other retailers' projects, but I don't think there are enough large land plots left in the city in the prime area to match our mall."
The 60-rai project has two phases. The first phase, which opened its door to shoppers on Oct 1, takes up 35 rai. The second phase will be developed in the next two years to have a residential project and other attractions with investment of 2-3 billion baht.
The 5-billion-baht shopping mall covers 200,000 square metres of space, with 50,000 sq m for a department store, 25,000 sq m for a shopping plaza, 25,000 sq m for a cinema and entertainment zone, and 100,000 sq m for a parking space to serve 3,500 cars.
The company is in talks to buy additional land nearby of 25 rai to expand the project, she said.
"Government infrastructure projects such as the high-speed train and Hua Hin airport expansion as well as private investment to develop resort condominiums and hotels should increase tourism in the region," said Ms Supaluck, also a key management for The Mall Group.
She said The Mall has focused on foreign tourists after the success of The Emporium mall in 1997, when the currency crisis saw a mass influx of visitors. Siam Paragon has also benefited from tourists, said Ms Supaluck.
The next development for the joint venture is BluPearl Phuket, with an investment of 20 billion baht on 150 rai. The project is scheduled to start construction by the end of this year and be completed by the end of 2018.
She said The Mall Group is likely to see revenue growth of 9% this year, almost double its target of 5%, because of higher than expected tourist arrivals.
"Siam Paragon and The EmDistrict malls, which mainly target tourists, have both seen high growth in sales," said Ms Supaluck.