Thailand hospitality firm EZY Thai Group and Buritara Development are diversifying into condominiums with a plan to sell on average two projects worth Bt2-3 billion a year.
"We will launch the projects in tourist destinations," CEO Tite Chinsomboon said. He is the owner of both EZY Thai Group, a hotel management firm with registered capital of Bt100 million, and Buritara, a developer with registered capital of Bt5 million.
The first project is the mix-used Buritara Resort City Jomtien Pattaya, worth Bt3.2 billion. The second project will be developed in Phuket next year, he said.
The Pattaya project consists of a resort, villas, hotel and condominiums. It will be built in four phases with the first phase, Buritara Resort Spa Jomtien (Pattaya), kicked off last week. The resort will use Bt200 million out of the total budget of Bt3.2 billion.
"We became interested in Pattaya when we saw strong demand from both tourists and people who want to buy a vacation home in this location," he said.
Financing will come from both internal cashflow and borrowing from a bank.
Buritara Group was established more than 10 years ago to develop resorts and spas in Kanchanaburi, Koh Phangan in Surat Thani, and Bangkok.
"We sold our project in Bangkok and expanded to Pattaya," he said.
After the resort, the next phase will be Buritara Pool Villa Resort Jomtien worth Bt300 million. It will offer only 19 pool villas starting at Bt16 million per unit. Presales are expected to begin in August next year.
The third phase is the 1,046-unit Buritara Resort Condo Jomtien worth up to Bt2.5 billion. Buyers will be guaranteed a return on investment of 5% in the first three years. The environmental impact assessment has already been submitted and construction is expected to commence in the middle of 2014.
"We'll develop this condominium like a hotel. Buyers will have the opportunity to use our rental service and get a guaranteed return on investment of at least 5% a year," he said.
The last phase is Buritara Resort City Jomtien Pattaya, a hotel with 1,000 units that should be completed in 2016.
Its project in Phuket will also combine a resort and condominiums.
"We are also eyeing opportunities to expand in Bangkok but still have to find land that is located close to the river. If we have the land, we'll develop our new project in Bangkok the next time," he said.
Buritara Development targets Bt60 million in revenue from its hotel business in 2014.