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Royal Garden Resort Plc (RGR) is poised to become a truly international
services company based on aggressive plans to expand both its food and
hospitality businesses overseas.
To reflect the international expansion strategy, the company next week
would officially change its name to Minor International, said president and
CEO Bill Heinecke.
SET-listed RGR is part of the Minor Group, so named because Mr Heinecke
was just a teenager when he started his first business in Thailand more than
three decades ago.
He said the return on investment in the international market,
particularly in the hotel sector, was greater than in Thailand as the room
rates are higher overseas.
But he said the company still wanted to maintain its positions as the
biggest player in both the food and hotel segment in
Thailand.
In the international market, the group is looking to either invest in or
manage properties in Bali
and the Maldives under its own Anantara brand, and plans to expand its food
business in the Middle East,
China, the Philippines and
Vietnam this year through franchisees or its own operations.
It plans to spend 600 million baht to open and renovate food outlets
locally and overseas while another 600 million baht will be injected by its
franchisees for further expansion.
In Thailand, RGR has budgeted two billion baht for the expansion of its
Marriott Club, a time-share joint-venture with Marriott International in
Phuket,
the construction of a Four Seasons Hotel on Koh Samui and a Four Seasons
Tent Camp in
Chiang Rai over the next two years.
Last year, RGR generated 8.2 billion baht in revenue, almost double from
4.6 billion baht in the previous year. Its profit rose to 711 million from
400 million baht.
Mr Heinecke said the positive performance last year was driven by robust
business in the food industry.
RGR currently has 2,241 hotel rooms in 14 properties and has 490 food
outlets under brands including The Pizza Company, Swensen's, Sizzler and
Burger King.
He said that of note, the company's hotel business was not affected by
the tsunami disaster as its properties were scattered throughout the
country, adding that RGR properties in
Hua
Hin,
Koh
Samui and
Chiang Mai are now fully booked.
Shares of RGR closed yesterday on the Stock Exchange of Thailand at 3.90
baht, up 14 satang, in trade worth 29.6 million baht. |