Leading Thai listed resort developer Laguna Resort and Hotels Plc. have disclosed to the Stock Exchange of Thailand (SET) a transaction of the Dusit Thani Laguna Phuket for an amount of THB 2.62 billion.
The buyer is Dusit Thani Public Company Limited. The transaction comes in at approximately USD81 million or USD358,000 a key, which, in terms of hotel valuations by several industry sources, is considered to be at the upper end of the scale.
The publicly listed LRH detailed in the ‘Information Memorandum’ on the divestment that the company had concerns over too much exposure in Thailand. As for the use of the proceeds this will be used to pay down debt, pay dividends and expand in investment abroad. It’s thought that some of the funds will be used for the new Laguna Hue destination resort in Vietnam which the company is developing.
The 226 room upscale property was first opened in 1987 and was the first hotel developer K.P Ho built in what would become one of Asia’s leading resort destinations – Laguna Phuket.
Adjacent to the resort are 28 pool villas which are branded and operated by the chain but are individually owned.
According to information on the Laguna Resort and Hotels Plc. website the management agreement with the Dusit chain will expire in approximately 2 years hence the valuation on a premise of a relatively short term vacant possession generated greater market interest. This transaction marks the 3rd significant hospitality asset to be sold in Thailand this year. In Koh Samui Baan Taling Ngam traded to a Thai group and anther property in Phuket the Novotel Beach Resort in Panwa also went to a domestic buyer.