Multinational company relocation to Southeast Asia and demand for conversions to serviced apartments has driven the growth of Onyx Hospitality Group's Shama serviced apartments.
Onyx wants to grow Shama to 40% of its portfolio by 2028, up from 32% now, as the brand posted the highest profit among its three major hotel brands.
Yuthachai Charanachitta, chief executive of Onyx, said more real estate owners want to convert their non-brand apartments to branded serviced ones, attributed to the strong return and the ability to generate income with less impact from the pandemic.
He said there is also a growing trend of more international companies expanding or relocating to Thailand and Malaysia, while most workers have returned to offices.
For example, some tech companies are opting for Malaysia to locate their regional offices, instead of Singapore, to save costs, he said.
Bangkok also has room for growth with conversion opportunities among apartments to cater to office worker demand.
"Property owners are looking for serviced apartments with a trusted brand and distribution network," said Mr Yuthachai.
He said converting an apartment to Shama can almost double the selling price.
Onyx owns and manages 20 Shama properties across four destinations, including six in Thailand, two in Malaysia, seven in Hong Kong and five in China.
The number of apartments will rise to 2,500, including the first property outside Bangkok in Rayong, which will be opened in 2027.
Onyx has 46 properties featuring 8,500 rooms under four brands: Shama, Amari, Ozo and Oriental Residence, including projects under construction.
The company anticipates increasing its portfolio to 70 properties by 2028.
Shama has posted an outstanding performance with the highest gross operating profit (GOP) at 55-65%.
Its flagship brand Amari and upper-midscale brand Ozo recorded GOP of 35-40% and 45-50%, respectively.
Mr Yuthachai said the company wants to elevate Shama to compete with regional peers, such as Ascott, a Singaporean hospitality firm which operates the Oakwood and Somerset brands, IHG's Staybridge brand, and Q House and Grande Centre Point in Thailand.
Destinations with promising opportunities are Bangkok and the Eastern Economic Corridor in Thailand, Kuala Lumpur, Johor Bahru and George Town in Malaysia, along with Guangzhou in China, where the company has already expanded this brand.
In Thailand, top long-stay guests at Shama comprised Japanese, Chinese and visitors from the Middle East.
Thanks to tourism's recovery, Onyx estimates 9.4 billion baht revenue this year, aligning with the target set earlier.
