Arnoma Hotels & Resorts plans to expand into hotel management by 2016 after finishing the combined 400-million-baht renovation of its two hotels, which will be used as models for its new hospitality service.
The company will set up a subsidiary to supervise its hotel management business. It believes that the tourism and hotel business in Thailand still has plenty of room to grow. The main target for its Arnoma label will be mid-tier hotels in cities and resort towns.
The Arnoma Grand Bangkok near Ratchaprasong intersection is currently undergoing a 200-million-baht upgrade.
Khunying Patama Leeswadtrakul, chairperson of Arnoma, said the company has successfully managed two hotels, one in Bangkok and the other in Kanchanaburi, in the past few years.
The Arnoma Grand Bangkok has generated revenue higher than expected even though it is located near Ratchaprasong intersection, which has many five-star hotels run by international chains.
The company aims to attract non-chain hotels by offering a competitive management fee structure, flexible work and a professional team.
It has earmarked 200 million baht to renovate the Arnoma Grand Bangkok, upgrading it to a high quality four-star hotel. It is currently carrying out improvements to the lobby, drive, guest rooms, reception area and restaurants.
"We want to reposition our hotel after losing market share to new players. We also want to compete with other four-star hotels in the Ratchaprasong area," said Eric Brand, Arnoma Grand Bangkok's general manager and operations director.
A 25-million-baht budget will be spent to renovate the Chinese and seafood restaurants. It has also teamed up with Singapore's Ah Yat Abalone Forum Seafood Restaurant to open an outlet on the 23rd floor.
At present, the hotel's top three markets are Singapore, Hong Kong and China. During the Lunar New Year, the hotel enjoyed an 11-day full booking. The Chinese tourism market has high growth potential and Thailand's tourism market has almost completely bounced back.
The Arnoma Grand Bangkok's renovation will be completed in early 2016.
Mr Brand hopes the new look will attract more corporate clients. This market will help the hotel during the low season from April to October.
The hotel expects its 2015 average occupancy rate will stay around 85%, compared to 50% last year.
Next, the company will renovate and rebrand Felix River Kwai Resort Kanchanaburi as the Arnoma Resort Kanchanaburi, with a budget of 200 million baht. The project should be completed in late 2016.
The Arnoma Grand Bangkok will be a city hotel model while the Arnoma Resort Kanchanaburi will be a model for resort destinations.