Dec. 3, 2002 - Royal Garden Resort Plc, the hospitality division of the Minor Group, will spend almost one billion baht to expand its hotel chain over the next two years, despite terrorist threats that could undermine the tourism industry. 

The company's portfolio, which already includes nine hotels, will be strengthened by the construction and acquisition of hotel properties on Ko Samui and Chiang Rai. 

According to Pratana Manomaiphiboon, Royal Garden Resort's chief financial officer, more than 400 million baht had been set aside for the construction of a "six-star" hotel on Ko Samui. The company is in talks with international hotel chains -- including Four Seasons -- to operate the new establishment, which is scheduled for completion in 2004. 

RGR will invest another 300 million baht in the rebranding and refurbishment of another hotel on the island. It will open in 2003 under the name of Anantara. 
 

Meanwhile, in Chang Rai, the firm will spend 100 million baht on a 20-room hotel. The new hotel will be built next to the Baan Boran, a five-star hotel located in the Golden Triangle that will also undergo a revamp.  Royal Garden Resort paid 145 million baht for the property earlier this year and now plans to spend 120 million baht converting it from a 110-room to a 90-room property. Baan Boran will reopen at the end of 2003 under the name Anantara Golden Triangle.

Baan Boran Resort The Golden Triangle Chiang Saen, Chiang Rai 57150 Thailand

The announcement of Royal Garden Resort's expansion comes just two months after bomb attacks in Bali threatened to devastate Thailand's tourism sector. 

But Bill Heinecke, chairman and chief executive officer of the Minor Group, said the events in Bali had prompted more tourists to flock to the country. Further grounds for optimism for the local tourism industry next year could be found in the continued recovery of the economy and strong consumer spending, he said. 

This year, RGR expects its sales revenue will grow by more than 15 percent from last year's two billion baht, with a net profit of 265 million expected for the year. 

In the first nine months of this year, the firm earned 1.8 billion baht with a net profit of 248 million baht. 

RGR shares closed yesterday at 11 baht, up 30 satang, in thin trade worth 634,000 baht. 

-----To see more of the Bangkok Post, or to subscribe to the newspaper, go to http://www.bangkokpost.com 

(c) 2002, Bangkok Post, Thailand. Distributed by Knight Ridder/Tribune Business News. FS,