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Published on March 13, 2008

Hawaii's largest hotel chain, Outrigger, has earmarked Thailand's beach towns, including Phuket and Koh Samui, for part of a massive Asia expansion, vice president Darren Edmonstone said. 

Following a global study, the Outrigger Enterprises Group, worth more than US$1 billion (Bt31 billion), has decided that Asia holds the "greatest promise" for its business, Edmonstone  - who is spearheading its drive in Southeast Asia - said.

The chain's first Thai project is a 396-room hotel in West Sands beach estate at Mai Kao in Phuket.

The five-star hotel opens next year and will be a core component of the project backed by Central & City Holdings, a venture with major shareholders such as Sir Terry Leahy, chief executive of Tesco, and Paul Mercer, a former Tesco veteran.

Central & City managing director Barry King told The Nation that the 121-rai property, which is worth Bt6 billion, ranks as one of the island's most environmentally responsible undertakings.

It is the first of three properties that Outrigger is developing in Phuket.

The chain's new hotel plans for the next decade are almost entirely in Asia, Edmonstone said.

"Thailand was placed on the very top of our list, followed closely by Vietnam, Bali, Maldives and Hainan Island in China," he said.

"Outrigger is developing properties in Na Trang and Danang," he said, adding that the firm strictly avoids big cities.

"You will never find us in Beijing or Bangkok because we are specialists in beach resorts, not city projects," he explained

"Thailand is by far the top pick with other resorts such as Pattaya and Hua Hin making our priority list of places to build," said Edmondstone, a 43-year-old executive who has worked with Hong Kong & Shanghai Hotels and the Kuwaiti Investment Office in his 12 years in Asia.

West Sands was recently awarded the Lighthouse Club Green Development Award by Bangkok-based Thailand Property Report's annual review.

It will be powered by solar energy and use water conservation systems through recycling and filter treatment. All its power lines run underground.

While Outrigger will invest Bt270 million to build and run the West Sands hotel, it does not hold equity in the estate itself. West Sands sells villas and condominiums and will also operate a four-rai water park, to be built by Canada's White Water, ranked the world's top specialist in the field.

Outrigger was keen to buy into the project, Edmonstone said. But wealthy shareholders such as Sir Terry and Mercer did not need additional capital. "Outrigger plans another project on Koh Samui and is looking into Pattaya and Hua Hin," he said.

One reason why Outrigger has grown so fast is that it is a family concern founded 60 years ago by Richard Kelly. Kelly remains chairman and the clan owns a majority stake in the company, which has no plans to go public.

Itthi C Tan

The Nation

Phuket