Suphajee: Seeking balance in expansion

Dusit International is pursuing an aggressive diversification strategy that will strengthen the traditional Thai hotel chain's portfolio with the addition of properties that range from the luxurious to the trendy, says group chief executive Suphajee Suthumpun.

"The 70-year-old company plans to launch a new hotel brand by 2019," Mrs Suphajee says. "The hotels under the label will cater to 'millennial lifestyle' travellers -- regardless of their age group -- by offering exquisite Asian decor, smaller rooms and larger communal spaces."

The first hotel under the new brand will be located at Chatuchak Weekend Market.

She says the company is also planning to strengthen its presence in the restaurant and food chain market by introducing Dusit Gourmet and The Lobby by Dusit.

These two brands will be included in all the hotels' restaurants, including Benjarong, May Flower, Thien Dong and Dusit Gourmet bakery.

The company is in the process of finding suitable locations in two or three community areas for new restaurants by year-end.

Mrs Suphajee says Dusit expects non-hotel businesses (including wellness ventures, restaurants, condominiums and mixed-use projects) to contribute 10% of total revenue in the next five years.

While diversification is essential to Dusit's growth strategy, balance and expansion are also necessary for the company's growth, she says.

Within the next three to five years, the company's ambitious plans include doubling revenue, doubling hotels under management to 58 and increasing the number of students who have graduated from Dusit hospitality schools to 6,000.

Construction of the 36-billion-baht Dusit Thani Bangkok Hotel will start in July 2018 and is set to be completed in 2021.

An artist's rendition of Dusit Thani's mixed-use project, featuring three buildings, with the new Dusit Thani Hotel on the left.

The five-star development project is a 60:40 joint investment between Dusit and Central Pattana.

Mrs Suphajee says all 588 staff will continue to be employed during the construction of the property.

Located on a 24-rai plot on the corner of Sala Daeng intersection -- where Silom and Rama IV roads cross -- the mixed-use development project will include a hotel, a residential building, an office building and a shopping centre.

The hotel and residential building will be operated by Dusit, while the office building and retail area will be managed by CPN.

The units will be ready to move some time around 2024.

Dusit Thani Bangkok Hotel earned 900 million baht last year, or 17% of the group's income.

The emphasis on property development is likely to entail a short-term revenue loss.

But Mrs Suphajee says the income of the whole group should remain constant, thanks to restaurants and other new projects.

Dusit is also embarking on organisational and managerial restructuring to accommodate its growth strategy, while also streamlining common business processes and enhancing cultural competency.

For example, the company has unified an array of network protocols and applications into a single IT infrastructure platform, which will drive consistency by automating workflow, improving internal integration and boosting efficiency.

Mrs Suphajee says the technological and organisational improvements will help increase Dusit's international presence.

The goal is for proceeds to be evenly split between domestic and international markets within the next five years.

Currently, 70% of the chain's 6 billion baht in revenue comes from the Thai market.