Santiburi Koh Samui, a five-star resort located in Surat Thani province, is owned by Singha Estate.

SET-listed Singha Estate Plc (S) plans to increase asset growth by up to 100 billion baht within three years and has announced a listing plan for its hospitality subsidiary, with a third-quarter launch of its IPO expected.

S Hotels & Resorts, a subsidiary involved with the hospitality business, is expected to introduce an IPO on the Stock Exchange of Thailand (SET) in the third quarter.

"The plan is expected to increase focus and strategic flexibility for hotel investment and management in response to the growing tourism industry worldwide, as well as stressing the company's vision towards becoming a global holding company," said chief executive Naris Cheyklin.

The vision will be achieved through a multi-investment strategy, including greenfield development, mergers and acquisitions (M&As) and joint ventures, said Mr Naris.

Singha Estate's total asset value stands at 60 billion baht, of which 26 billion belongs to assets held by S Hotels & Resorts, with others the assets under Nirvana Daii and SPRIME, a real estate investment trust (REIT) listed on the SET index.

S Hotels & Resorts' registered capital is around 17 billion baht, with 10 billion in paid-up capital. Wholly owned by Singha Estate, shares of Singha Estate in the company will be diluted to 60% after the planned IPO launch.

Krungthai Bank and CIMB Thai Bank have been appointed as the company's financial advisers and lead underwriters.

Singha Estate invests in three core businesses -- commercial and retail, residential and hospitality.

Mr Naris said Singha Estate can increase future liquidity by converting assets of S Hotels & Resorts into a REIT or raising finance through the capital market.

Dirk De Cuyper, chief hospitality officer at S Hotels & Resorts, said the company has invested in 39 hotels and resorts across the globe, with a plan to increase the number to 75 properties over the next five years.

Mr De Cuyper refused to specify about the investment plan, saying investment conditions depend on several factors.

Investment could be in the form of an M&A, a takeover, or a joint venture, he said.

For Thailand, the company is looking to expand hotels and resorts in tourist destinations such as Chiang Mai, Chiang Rai and Chon Buri, said Mr De Cuyper.

The property business remains interesting and it will continue growing it to reduce investment risks by diversifying into new assets in other countries, he said.

S shares closed yesterday on the SET at 3.40 baht, down four satang, in trade worth 25.4 million baht.