One of the first five star hotels built in Phuket in the mid 1980s has been sold. Dusit Thani Laguna Phuket, one of the anchor hotels in the Laguna complex, has been sold for 2.62 billion baht today.
Luxury resorts operator Banyan Tree Holdings says one of its subsidiaries is selling a hotel asset in Thailand for some 81 million USD. The subsidiary, Laguna Resorts & Hotels, is selling the “Dusit Thani Laguna Phuket” in Phuket to Dusit Thani Public Company.
The sale proceeds amount to about 2.7 times the book value of the hotel being sold. The buyer is Dusit Thani Public Company Limited.
In its “Information Memorandum”, the company says, is in line with its strategy of diversifying its assets away from Thailand, given the increased political risk that Thailand presents. The firm has a heavy representation of Thai hotel properties amongst its assets.
Proceeds from the sale may be used for overseas investments, repayment of bank loans, and/or payment of dividends to shareholders.
Laguna Resort and Hotels PCL announced it is to divest its Dusit Thani Laguna Phuket hotel, consisting of land, buildings, plant and machinery for THB 2,620,000,000. The Company stated it needs the funds for its overseas investment plans. The hotel will be sold to Dusit Thani PCL, which was the successful bidder.
According to The Phuket Insider, some of the funds will be used for the new Laguna Hue destination resort in Vietnam which the company currently is developing.
The expected date of transfer of ownership will be within November 2010 or no later than December 2010.
Banyan Tree Holdings will release their 2nd quarter results on Thursday, August 12.
About Dusit Thani
Dusit Thani Public Company Limited is a Thailand-based company engaged in the provision of hospitality services. The Company’s principal activities are the operations of owned hotels and providing hotel management services and franchise services.
It operates three hotels: Dusit Thani Bangkok, a five-star hotel with 517 guest rooms; Dusit Thani Pattaya, a resort-style hotel with 457 guest rooms, and Dusit Thani Hua Hin, a resort-style hotel with 296 guest rooms. It also owns an 11-storey commercial building for rent.
In 2009, the Company managed five properties under the trademark of Dusit Thani, namely Dusit Island Resort Chiang Rai, Dusit Thani Laguna Phuket, Dusit Thani Manila in the Philippines, Dusit Thani Dubai in the United Arab Emirates and Dusit Thani Lakeview Cairo in Egypt.
About Banyan Tree
Banyan Tree Holdings Limited (BTH) is a Singapore-based investment holding company. The Company is engaged in providing project design and management services. The hotel investment segment relates to hotel and restaurant operations.
The hotel management segment relates to the management of hotels and resorts. The hotel residences segment relates to sale of branded hotel properties to investors under a compulsory leaseback scheme.
The spa operation segment relates to the management and operation of spas. The gallery operation segment relates to sales of merchandise. The property sales segment relates to property development operations. The head office segment relates to expenses incurred by corporate office.
The Company’s subsidiaries include Banyan Tree Hotels & Resorts Pte. Ltd., Banyan Tree Properties Pte. Ltd., Banyan Tree Spas Pte. Ltd., Banyan Tree Adventures Pte. Ltd., Banyan Tree Jiuzhaigou Pte. Ltd. and Banyan Tree Chengdu Pte. Ltd.
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