UHG Reveals Development Plans For 5 Hotels In The Next 3 Years

There’ll be another new addition to the many hotels in Sukhumvit soon, if UHG’s plans for the future hold.

The local hotel chain, formally known as the Urban Hospitality Group, has plans to invest in five new hotels across the Thai capital over the next three years, amounting to a total of 3 billion baht, as part of their efforts to capitalize on the young tourist market.

UHG Managing Director WutthiphonTaworntawat says that mid-scale hotels in Thailand will continue grow thanks to their unique designs and their competitive rates which are attracting millennial travellers from across the world.

Other factors that will likely contribute to the mid-scale segment are lower development costs and lighter extra service offerings, which removes the services offered by five-star accommodations that the newer generations of travellers deem to be unneeded.

Mr. Wutthiphon says that the investment cost for five-mid scale projects will sit at around 3 billion baht, all of which will be in Bangkok, while the land plots having already been secured earlier.

Out of the 5 new investments, 2 of which will be open for operations in 2019, one of which will be a new additions to the hotels in Sukhumvit; The Quarter Phromphong on SukhumvitSoi 31, with the other being The Quarter Ploenchit, on SoiRuamrudee.

In the following year, the company plans to open two more hotels; The Quarter Silom and the Quarter Ruamrudee.

The final project, The Chaophraya Bangkok, might be the UHG’s biggest project yet. Located on a stretch of the Klong San district by the Chao Phraya River, the property will open by 2021 after the Gold Line monorail opens to the public. The city’s 459-metre observation deck, the Unity Tower, is currently under construction.

Mr. Wutthiphon said that the Thai hotel industry hasn’t been in the best way since the boat incident on July, which resulted in the death of 47 Chinese tourists. Combined with the economic slowdown, the number of Chinese visitors, which amount to the largest demographic in Thailand’s tourism industry, took a double-digit hit in July.

He says that, if the Chinese economy remains as sluggish as it is and a lack of aggressive travel incentives from the government continue, the hotels in the country will make a lot of adjustments in order to compete for customers.