Hotel Nikko to open in industrial zone in Thailand
BANGKOK, NNA - Japanese hotel chain Hotel Okura Co. plans to open a luxury hotel under its Nikko Hotels International brand at an industrial zone in Thailand's Eastern Economic Corridor in the first half of 2021.
A groundbreaking ceremony was held Thursday for Hotel Nikko Amata City Chonburi in the Amata City Chonburi Industrial Estate in the province of Chonburi, 60 kilometers southeast of Bangkok.
“We expect business use to be around 70 to 80 percent. The remainder will be leisure use by residents in Thailand,” Toshihiro Ogita, president of Hotel Okura, told NNA on Thursday.
It marks the company's first hotel in an industrial zone and the Hotel Okura group hopes to expand such projects to other parts of Southeast Asia capitalizing on business demands.
“As there are also business demands in Indonesia and Vietnam, we are considering opening hotels in other industrial zones after Thailand,” he said, adding that the group plans to expand its hotels from a total of 87 to 100 by 2020, placing Southeast Asia as its key area.
Japanese constructor Fujita Corp., a Japanese public-private fund, and local developer Amata Corp. will invest 1.56 billion baht ($50 million), building a 13-story hotel with 250 rooms with a standard size of 32 square meters.
Okura Nikko Hotel Management Co., a Hotel Okura group company, will operate the hotel accommodating a Japanese restaurant, a ball room, as well as a gym and a large public bath.
The 21,000-square-meter industrial zone in Chonburi houses around 750 companies, of which 450 are Japanese, including auto, steel and plastic manufacturers, according to a statement released December by Okura Nikko.
The Thai government sets the Eastern Economic Corridor as a focal point of development, pushing for foreign investment to become an industrial hub of Southeast Asia. Japanese businesses had been investing in eastern Thailand area since the 1980s, with China following along with its Belt and Road Initiative. (NNA/Kyodo)