Destination Group, a leading hospitality operator, is investing 1.2 billion baht to expand its food and beverage business in Thailand and across Asia in a bid to drive revenue to at least 2 billion baht within the next two years.
Chief executive and founder Gary Murray said consumption is growing in Asean, which together with Hong Kong and Taiwan is home to more than 650 million people. This has driven Destination Group to venture abroad in search of greater success.
The company plans to open a number of pizzerias, coffee shops and steak houses, as well as Hooters restaurants in Thailand, Taiwan, the Philippines, Hong Kong, Indonesia, Singapore and Cambodia in the first quarter of next year.
A Hooters restaurant is expected to open in Koh Samui, as the island is considered one of the most vibrant destinations for foreign tourists.
The company also aims to open more Hard Rock cafes in countries near Thailand, especially locations that have never hosted the chain.
Mr Murray said the food and drink expansion will enhance Destination Group's presence in Asia-Pacific and drive revenue to reach parity with hotel operations within two years.
"Investing in food and beverages is less risky and can generate a return in less than three years," he said. "Meanwhile, investing in hotels takes more time to break even and the return is about 10-12% per year."
Apart from food and drink, Mr Murray said Destination Group also plans to open two more hotels next year.
One is Ibis Styles Samui, while the other will open in Sri Racha district, Chon Buri, as the area is popular with Japanese businessmen. The hotel is expected to support meetings, incentives, conventions and exhibitions (Mice) business in Sri Racha.
Mr Murray said Thailand is the most resilient country in the region and has the capacity to quickly bounce back when faced with negative occurrences such as natural disasters and political unrest.
Destination Group also aims to acquire hotels in the Philippines and Indonesia, given their population densities.
"The Thai tourism market is very vibrant and worth investing in," Mr Murray said. "Every aspect of our business is aimed at both locals and foreigners."
He said Destination Group will continue having a single owner and hire world-class hotel chains like AccorHotels to manage its hotels. The group is also a franchisee of many restaurant chains set to open in Thailand and abroad.
"We will continue using global brands, as we have found that they can offer us strong business networks, including high value in terms of brand and stability," Mr Murray said.
The group's property unit, Destination Properties, currently owns Swissotel Resort Phuket, Sri Racha International Golf Course and Resort, Hard Rock Cafe Phuket at Patong Beach, Hard Rock Cafe Samui, Novotel Phuket Karon Beach, Novotel Phuket Surin Beach Resort, Novotel Cha Am Beach Resort & Spa, Swissotel Resort Phuket Patong Beach and Four Points by Sheraton Bangkok Sukhumvit 15.
The company's food and drink business operates Hooters Phuket, Hooters Bangkok, Hooters Nana, Hooters Pattaya and Hooters Hong Kong.
