SCX Corporation, the recurring-income asset management arm of SET-listed developer SC Asset Corporation, plans to invest 2 billion baht to develop a second hotel in Pattaya, and is seeking a joint venture partner for the project.
Rachod Nantakwang, chief executive of SCX, said the hotel will be developed on a leasehold plot in Pattaya city, with the company working on a high-rise tower design.
“Recurring-income assets are capital-intensive,” he said. “We plan to co-invest with partners for all projects of that type, and eventually exit by selling the asset to a real estate investment trust [REIT].”
For hotels, the optimal time for a REIT sale is after three years of operation, once occupancy reaches around 80%, while warehouses typically mature for sale within a year as occupancy fills faster, said Mr Rachod.
The new Pattaya hotel will be announced next year and is scheduled for completion between 2029 and 2030, he said.
The company’s first hotel, The Standard Pattaya Na Jomtien, opened on Tuesday and is a joint venture with SET-listed contractor Syntec Construction, which holds a 55% stake, with a total investment of 1.3 billion baht. SCX holds a 45% stake.
The 161-room property is located on a beachfront leasehold plot under a 30-year contract.
The Standard Pattaya Na Jomtien features a ballroom and meeting facilities, targeting 70% independent travellers and 30% corporate guests.
“The tourism market has evolved,” said Mr Rachod. “Travellers now seek unique and stylish hotels rather than traditional ones. The Standard Pattaya is enjoying over 91% occupancy on weekends through the end of the year.
“Although Chinese travellers have been slower to return, Pattaya continues to attract visitors from Europe, Malaysia and Singapore. When Chinese tourists come back, they may be fewer in number but spend more, which aligns with our target market.”
He said Phuket and Bangkok are SCX’s next target destinations, with plans for 2-3 more hotels, each with at least 200 rooms.
Projects could be greenfield and also brownfield, with developments completed faster.
The parent firm SC also holds a plot in Hua Hin, but will wait for road construction to finish before developing a hotel there. Chiang Mai, however, is not on the company’s radar.
Mr Rachod said SCX will co-invest with a partner in VOCO Bangkok Siam, a new 350-room hotel in the Siam area, with a 2.2-billion-baht investment, scheduled to open by 2029.
The hotel will be SCX’s fourth, following the 78-room YANH Ratchawat, wholly owned by SCX and opened in 2023, and the 306-room Kromo Bangkok, Curio Collection by Hilton, opened last month in a joint venture with Japanese property firm Daiwa House.
“This year, 17–18% of SC’s revenue is expected to come from SCX, faster than projected, with a 2030 target of 25% –half from hotels, half from warehouses and offices,” he said.