Thai Company Signs Franchise Deal To Set Up 44 Tune Hotels In Five Countries

Evolution Capital, listed on the Stock Thai Exchange, is planning to invest over US$200 million in the next few years to build, refurbish and operate 44 Tune Hotels.com in five countries.

The company has signed a franchise agreement with Tune Hotels.com.

Its President, Simon Gerovich said 24 hotels would be operated in the first phase within the next four years, with the first scheduled to be operational in Thailand's premier resort island of Phuket by 2010.

Besides newly set up hotels, half of them would be existing hotels to be refurbished as Tune hotels.

"We are leasing most of the land or space for 30 years to keep our initial cost low," he said at the announcement of the franchise agreement between Tune Hotels.com and Evolution Capital.

Property prospects for Phuket and Krabi

Nick Anthony and Tom Travers of Indigo Real Estate discuss how Thailand’s property sector has been affected by the global economic crisis, and what to watch for in southern Thailand during 2010.

Phuket shakes off the world economic problems
The global financial crisis will rumble into 2010 and will create more surprises. The United States is still in deep trouble, Europe is fracturing and Africa is unstable.

In Phuket most projects went into the global financial crisis under duress caused by the previous two years of political instability, so most developers have escaped the worst of the speculative excesses. Developers have been offering attractive incentives in the final quarter of 2009 that have helped to thaw the standoff from buyers.

In Industrial Thailand, Health and Business Concerns Collide

MAP TA PHUT, Thailand — Villagers here avoid walking in the rain because they say it burns their skin and causes their hair to fall out. They have trouble breathing at night when, they say, factories release toxic fumes. And they are terrified by what studies show are unusually high cancer rates.
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The New York Times

Map Ta Phut is an industrial zone akin to a midsize city.

Map Ta Phut is the heart of Thailand’s industrial underbelly, an area rarely seen by the millions of tourists who visit the country every year. Jutting out into the Gulf of Thailand, the industrial zone is on the scale of a midsize city — only instead of office buildings and apartments, there are block after block of tangled tubes of steel, vats of chemicals and towering, fire-breathing gas flares.

AirAsia's $3 hotel rooms target Phuket

Kuta Beach in Bali is one of the locations of Tune Hotels, a Malaysian budget chain affiliated with AirAsia. IT aims to set up 44 properties across Asia in a deal with Evolution Capital, a SET-listed real estate investment and management firm.

19 more projects can seek court permission

After yesterday's Cabinet meeting, Prime Minister Abhisit Vejjajiva said the four-party committee had reported on the status of each suspended project to the Cabinet. Of the 65 projects, 42 have been given the status of operating, completed construction or under construction, while the remaining 23 have either not sought permission or have yet to start construction.

"Of the 42 projects, 19 come under the same criteria as the 11 projects earlier allowed to resume operations," he said.

Tune Hotels.com has partnered Thailand's Evolution Capital

Tune Hotels.com has partnered Thailand's Evolution Capital pcl to set up 44 budget hotels across Asia under a franchise deal. Evolution Capital, which is listed on the Stock Exchange of Thailand, will invest US$200 million (RM688 million) and run the hotels using the Tune Hotels.com brand name. It plans to set up hotels in Thailand, China, Bangladesh, the Philippines and Indonesia.

Evolution Capital, a real estate investment advisory and management firm, is confident of recouping its investment in three to five years, its managing director and president Simon Gerovich said.

Gerovich sealed the franchising agreement together with Tune Hotels.com group chief executive officer Mark Lankester here yesterday.

Thai central bank keeps key interest rate unchanged

Thailand’s central bank on Wednesday kept its policy interest rate unchanged at 1.25 per cent, saying the current rate is “appropriate and supportive of the economic recovery”.

Bank of Thailand (BoT) Assistant Governor Paiboon Kittisrikangwan said the Thai economy continued to recover at a slightly slower pace in the third quarter and October boosted by improvements in domestic and foreign order books, business sentiment, farm income, employment conditions as well as the tourism sector.

As a result, the BoT Monetary Policy Committee (MPC) agreed that gradual economic recovery still “requires sustained policy support.”

The major industrialised and Asian economies expanded in the third quarter at higher rates than market expectations but overall recovery remains dependent on policy support.

Current global inflationary pressure continues to be subdued, but risks to global economic recovery remain and warrant continued close monitoring, Mr Paiboon said.

Vietnamese economy poses no threat to Thailand

Mr Pisanu said that medical advances in Vietnam lag far behind Thailand. For difficult cases, well-to-do patients still travel to Thailand for treatment because Vietnam's health care expertise is lacking.

Nor was Thailand's status as the world's top rice exporter under threat from Vietnam.

Mr Pisanu said Vietnam exported about 5 million tonnes of rice last year while Thailand exported 8-9 million tonnes.

Thai rice is more expensive because of its higher quality especially the world famous Hom Mali, while Vietnam exports cheaper varieties.