An artist's impression of The Ascott's new serviced apartment brand, Metropole, which is located on Phetchaburi Road in the Thong Lor area. It has 116 units and is scheduled to open on Sept 1.

Singaporean serviced-residence operator The Ascott Ltd has set its sights on Chon Buri to tap rising demand from expatriates working on industrial estates in the eastern region.

It plans to open five new properties in the province by 2020 as the competition heats up in Bangkok.

Jean Keijdener, country general manager for Thailand, said demand for long-stay serviced residences in Chon Buri is strong, particularly in Si Racha and Pattaya, as evidenced by the 90% occupancy rate seen in the first half at its Si Racha serviced apartments.

"Due to a huge expansion of industrial estates in the eastern region, Chon Buri has seen an inflow of expatriates, who are our target clients. Most of them are Japanese executives," he said.

Around 90% of customers at Citadines Grand Central Sri Racha, a 136-room serviced residence launched early last year in Si Racha, are staying long term. The long-term occupancy rate at its eight properties totalling 1,700 rooms in Bangkok, by contrast, is 50%.

Within the next three years, the Ascott will operate a new property in Si Racha -- Somerset Central Sriracha. It will also open four new residences in Pattaya, which will be located in North Pattaya, Central Pattaya, Jomtien Beach and Wong Amat, with a total of 695 rooms.

"Opportunities for serviced apartments in Si Racha are greater than in Bangkok, where there is oversupply. But the number of tourist arrivals to Thailand is on the rise, which can help boost hotel occupancy rates."

In Bangkok, The Ascott will open two new serviced apartments this year, including the 116-unit Metropole on Phetchaburi Road in the Thong Lo area on Sep 1, and Somerset Ekamai on Ekamai Soi 2 next month.

In light of the current economic conditions, the average occupancy rate at its eight serviced apartments in Bangkok during the first half was 80-85%, lower than that in Si Racha, but slightly higher than last year, said Mr Keijdener.

The company aims to boost its daily occupancy rate by 5-6% by the end of the year on the back of increased economic sentiment.

"Due to oversupply in Bangkok market, we need to differentiate with a new brand, Metropole, which is one of The Ascott's four properties under The Crest Collection brand. We have three sites in Paris and this is our first one in Asia," Mr Keijdener added.