Al Meroz Hotel in Ramkhamhaeng Soi 5 opened four months ago as the first four-star halal hotel in Thailand. (Photo supplied by the company)

T.S. Family Group is investing 1 billion baht to promote the country's first four-star halal hotel in Bangkok's Ramkhamhaeng area, aiming to tap wealthy Muslim tourists.

The 242-room Al Meroz Hotel in Ramkhamhaeng Soi 5 is envisioned as a new tourism magnet in line with the campaign to make Thailand a Muslim-friendly destination.

Rausak Mulsap, president and chief executive of T.S. Family Group, said the company saw potential to enlarge the halal hotel segment.

Muslims number 1.6 billion worldwide, or 22% of the global population.

"It's a blue-ocean market," Mr Rausak said.

The Al Meroz Hotel opened last November and its average occupancy is 65%. Half the guests are European and the rest come from Asian markets.

Given the satisfactory performance, the group expects to generate 198 million baht revenue in the first year of operation and its occupancy rate is expected to reach 70%. The hotel will break even within 10 years.

The group has earmarked a marketing budget of 50 million baht to promote the hotel and will invest in hotels overseas, particularly in Europe, China and the Middle East.

Sanya Saengboon, managing director and general manager of Al Meroz Hotel, said he just returned from ITB, the big travel trade show in Berlin, and received a warm welcome from buyers in Europe. Many European countries such as Germany, Britain and France have potential to grow.

The group, which is also the largest apartment developer in Ramkhamhaeng, will attend leading trade shows such Arabian Travel Market (April 25-28) in Dubai, and World Travel Mart 2016 (Nov 7-9) in London.

In the rest of this year, the hotel plans to join a roadshow organised by the Tourism Authority of Thailand in Eastern Europe and work closely with the Association of Thai Travel Agents to introduce its hotel to Muslims in China.

The concept of a 100%-halal hotel entails not only serving food with halal certification, but the premises must also provide a Muslim-friendly environment catering to their religious needs, safety and hygiene. Muslims account for 60% of the staff.

Mr Rausak said the group is interested in forming a joint venture with Muslim investors to develop hotels in resort destinations like Pattaya and Hua Hin in the next few years.