Dusit takes over a resort in Maldives

Friday, 3 June 2011 20:12

Dusit Thani is in the process of taking over a five-star resort in Maldives in a deal worth US$77 million (about Bt2.3 billion).

The company's board of directors approved the investment in principle on Wednesday. Subsidiary Dusit Thai Properties will conduct the acquisition.

The board also approved the non-refundable deposit payment of $500,000 for the exclusive rights to the appraisal of Baa Atoll, the resort on Mudhdhoo Island.

Mudhdhoo Island occupies about 186,000 square metres, with 100 villas, one spa building and three restaurants and bars.

In the filing to the Stock Exchange, Dusit Thani said that the resort was about 80 per cent complete and that it would pay $60 million for leasehold rights for 33 years to 2044. The company expects completing the hotel and covering pre-opening expenses to cost another $17 million.

The company said that it was looking for a co-investor but that Dusit Thani Properties would hold at least 50 per cent.

"The company has carefully considered the growth and profitability of this project based upon the high potential for tourism of the Maldives, which has been growing stronger continuously," it said in a statement.

"Despite the world's economic recession and financial crisis during the past two years, the Maldives has proved to be resistant to such adverse circumstances, as can be seen by the slight drop in the number of tourist arrivals compared with those of other tourist destinations."

The statement said that five-star hotels in Maldives had seen higher average room rates and occupancy rates than other locations and that Maldives' tropical climate could accommodate tourists throughout the year.

The investment could therefore be expected to bring good returns that would increase the parent company's revenue and help turn the brand into one of the world's most popular.



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