MBK Adapting to Thai Hospitality Market Conditions

Among MBK’s eight businesses, its hotel and tourism unit generates the third most revenue, following its shopping complex and rice ventures. The Nation reports that the group’s Bangkok hotels had suffered for about eight months since the political crisis began, with average occupancy of around 40 percent, compared to 75 percent in the same period last year. Moreover, visitor stays in Bangkok were only an average of 2.7 days per trip, due to security concerns, compared with five days in Pattaya and 10 to 15 days in Phuket, Samui and Krabi.

MBK has thus embarked on several marketing initiatives to adapt to the changing market dynamics. First, discounts on accommodations in Bangkok were needed to lure visitors back. The group’s Pathumwan Princess Hotel in Bangkok, which brought in 60 percent or THB 180 to 200 million in revenue in the first half of this year, is featuring discounts of around 10 percent.

Also, a rebranding project is underway. In Phuket, the company is promoting its THB 160-million Tinidee Resort to locals and foreign golfers. It will soon add conference rooms, outdoor activities and wedding facilities to attract niche customers. The group has also changed the name of its Princess Ranong hotel to Tinidee Hotel@Ranong, focusing on the local market as well as government functions.

To tap into the high-end of the hospitality market, MBK acquired Layana Resort and Spa in Koh Lanta, and turned it into an exclusive hotel, following a refurbishment project. The group also owns the upmarket Sheraton Krabi Beach Resort.