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Youthful investors keen on hotel sector

By on Jul 30, 2012 in Property News

Asian hotel owners, including Thais, tend to be younger than their counterparts elsewhere, leading more young businessmen to consider hotels as a safe long-term investment, say hotel management companies.

Moreover, hoteliers have more choices with all the local and international chains serving the market.

Glenn De Souza, vice-president for Asia and the Middle East at Best Western International (BWI), said young people pay more attention to hotels and this has prompted investors, mostly the second generation of rich families, to stay for 25-35 years.

“The investors strongly believe that hotels are a stable long-term business,” he said. “Most of them come from other industries such as textile and electronic parts manufacturing. They have money and want to reduce their business risk.”

This is a challenge for hotel chains that will have to present their business to young hoteliers who are new to the field.

Moreover, the hotel business in Thailand and Asean will see a rising number of new investors after the formation of the Asean Economic Community (AEC) in 2015, as millionaires will be numerous.

“The bright prospects of the tourism business in Thailand will attract more investments from overseas, particularly from Singapore,” Mr De Souza said.

Ronnachit Mahattanapreut, senior vice-president for finance and administration at Centara Hotels & Resorts, said the younger and older generations in the hotel business have different objectives.

New-generation investors see hotels as a long-term profitable business.

For the full article, please visit http://www.bangkokpost.com/business/economics/304947/youthful-investors-keen-on-hotel-sector

Source : Bangkok Post 30 July 2012

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