Over the time period of 2018 to 2019 the resort has expanded to 95 keys, Health Republic – Wellness & Detox, four new F&B concepts, upgrade and remodel all existing rooms and common areas, and a new reception, gym, function room & VIP lounge.
The property is part freehold (the 3 rai at the rear) and part leasehold (the 6 rai at the oceanfront). The property comes with a new 30-year lease on the leasehold section, which will start in October this year.
We have some fractional/timeshare owners, who own 166 weeks between them. This equates to 3.4% of the expanded inventory. Almost all of the usage rights are in shoulder and low season, so they do not impact room revenues much.
The lease payment in the first year (5 installments) is 50m Baht, and the remaining construction would be approximately 180m Baht. That implies a value today of 460m Baht.