quality shelves hotels

The Quality Group has suspended hotel projects in Chiang Mai and Phuket while pressing ahead with its medical-care clinics.

"We have to delay the construction because of the economic slowdown and the decline in foreign tourists. Both projects need huge money, so it's not a suitable time for investment," president and CEO Suthasinee Setabandhu said yesterday.

The company decided to freeze the Bt3.6-billion Chiang Mai project even after paying Bt100 million for the hotel's design, and also put the Bt2.4-billion Hyatt Regent Phuket on hold despite construction progress reaching 90 per cent.

The Phuket property had been expected to open in a year from now.

Although resort development has stalled, the company is enjoying bright prospects for its medical-service business.

It has launched the Bt50-million Q Medical Centre (Reju Asoke), providing rejuvenation and alternative medicine services on Bangkok's Sukhumvit Soi 21.

The company has budgeted about Bt150 million to open medical centres in shopping malls.

The medical-centre business has greater potential and needs less capital than the property business, Suthasinee said.

The company has earmarked Bt10 million to marketing activities for Reju Asoke, including roadshows in office buildings and seminars on alternative-medicine services.

The group aims to sell Q Medical Centre memberships to high-end Thais and foreigners using co-promotions with luxury hotels.

"We will start co-promotion with our hotels before expanding to others. We target revenue from the medical centre at Bt30 million this year and Bt250 million next year," she added.