SCX allots B2bn for second Pattaya hotel

SCX Corporation, the recurring-income asset management arm of SET-listed developer SC Asset Corporation, plans to invest 2 billion baht to develop a second hotel in Pattaya, and is seeking a joint venture partner for the project.

- KANANA KATHARANGSIPORN

Rachod Nantakwang, chief executive of SCX, said the hotel will be developed on a leasehold plot in Pattaya city, with the company working on a high-rise tower design.

"Recurring-income assets are capital-intensive," he said. "We plan to co-invest with partners for all projects of that type, and eventually exit by selling the asset to a real estate investment trust [REIT]."

For hotels, the optimal time for a REIT sale is after three years of operation, once occupancy reaches around 80%, while warehouses typically mature for sale within a year as occupancy fills faster, said Mr Rachod.

The new Pattaya hotel will be announced next year and is scheduled for completion between 2029 and 2030, he said.