Dusit Thani Bangkok in 2023

 

 

             On Rama 4 Road in the CBD area of central Bangkok, it has become one of the hottest locations. Real estate developers are gradually launching mixed-use projects in the coming years. One project at the corner of Silom and Rama 4, which is the site of Dusit Thani Bangkok, is set to become a new iconic landmark of Bangkok in a mixed-use format as well.

 

            TerraBKK delves into the data of Dusit Thani Public Company Limited. Financial figures may indicate the business situation and become one reason for significant adjustments. What will the new chapter in the history of Dusit Thani Public Company Limited look like? Stay tuned for more.

 

 

 

 

 

            Over the past three years, the operations of Dusit Thani Public Company Limited have fluctuated slightly within a range of plus or minus 100 million baht from the previous year.

 

• In 2016, total revenue was 5,425.13 million baht

• In 2017, total revenue was 5,569.66 million baht

• In 2018, total revenue was 5,564.76 million baht

 

            80% or more of total revenue comes from “hotel business revenue”. Dusit Thani Bangkok is the highest revenue-generating hotel within the Dusit Thani group, yet it has seen a concerning decline in revenue.

 

• In 2016, total revenue was 915.12 million baht

• In 2017, total revenue was 902.14 million baht

• In 2018, total revenue was 839.84 million baht

 

 

            One of the top 3 hotels, “Dusit Thani Maldives”, is generating revenue in its place, with 840.07 million baht in 2018, holding a share of 19.21%, similar to “Dusit Thani Bangkok”.

 

            This may be one reason why Dusit Thani Public Company Limited decided to extend the land lease at the corner of Silom and Rama 4 for another 30 years, which is the location of Dusit Thani Bangkok. The management's intention is to make this site a “symbol of Bangkok” once again, just as it was 48 years ago.

 

 

 

 

 

            “Dusit Central Park” is a mixed-use project that is set to become The new iconic landmark of Silom-Rama 4 with an investment budget of over 36.7 billion baht, through a collaboration between two BIG BRANDS in the real estate sector: Central Pattana Public Company Limited and Dusit Thani Public Company Limited. It aims to cater to activities for people of all ages and nationalities, divided into four main components:

 

• Dusit Thani Bangkok Hotel, with an area of 42,000 square meters, a 39-story building with approximately 250 rooms, a 5-star hotel equipped with modern Digital Technology Services, expected to open in early 2023.

 

 

 

 

 

• World-Class Retail Shopping Center, with an area of 78,000 square meters, an 8-story building that will become an Urban Lifestyle Shopping Mall featuring iconic global brands and a variety of international cuisines, expected to open by the end of 2023.

 

 

• Grade A Office Building, with an area of 90,000 square meters, a 43-story building that will be the best office space with LEED Certified standards in Bangkok's CBD, expected to open in early 2024.

 

 

• Luxury Residence, with an area of 82,000 square meters, a 69-story building featuring two high-end brands: Dusit Parkside in Contemporary Style with 230 units from floors 9 to 29, and Dusit Residences in Elegant Style with 159 units from floors 30 to 69, expected to open in mid-2024.

 

            Additionally, there will be a Sky Roof Park covering 3 rai on the top floor of the Retail Podium, providing space for various activities and events for the people of Bangkok.

 

 

 

              The new path that Dusit Thani Public Company Limited has laid out began in 2016 and will continue until 2025, aiming for Unlock Value Creation to increase revenue from hotels, residential buildings, and retail spaces through three main business strategies:

 

• Balance: Creating a balance of revenue, such as balancing between investing in building hotels and managing them, increasing the proportion of international business to 50%, etc.

• Diversify: Increasing business diversity to spread risk, such as targeting revenue from other investments to be 10% of total revenue, etc.

• Expand: Expanding business growth by doubling the number of hotel rooms to 14,000 by 2021.

 

 

 

              It is not surprising to notice the changes that occurred during 2016-2018, which was a time for strengthening the company's foundation. The year 2019 will mark the transition to phase 2, recognizing the potential for growth. From now on, we can expect to see the commencement of various real estate projects, gradual revenue recognition from unit sales, and an increase in hotel room numbers through hotel business expansion (both domestic and international management), as well as an emphasis on integrating hotel and educational businesses. By 2023, prepare to meet “Dusit Central Park”, a mixed-use project with an investment of over 36.7 billion baht, which aims to become The new iconic landmark of Silom-Rama 4 or “a symbol of Bangkok” once again, just as it was 48 years ago. Will it achieve its intended goals? ---TerraBKK