$80m Canberra Deal For Thai Billionaire

[midas]

This was in todays Australian Financial Review newspaper..................

$80m Canberra deal for Thai billionaire

Tuesday, 06 January 2009 | The Australian Financial Review | Lisa Allen

Thai billionaire Charoen Sirivadhanabhakdi has acquired a second major hotel

complex in Australia, buying Canberra's Hyatt from Singapore's Grand Hotel Group for $80 million.

It just made me wonder if Khun Charoen sees something up ahead regarding the Thai

economy which has prompted him to diversify like this.............?

[singa-traz]

$80M ... it's less than 3% of his net worth ...

[samuibeachcomber]

so thats where the money goes.

[Samuian]

....... something up ahead regarding the Thai

economy which has prompted him to diversify like this.............?

check out the CP portfolio then you may get an idea...

so has Dusit Group since long, besides it seems Hotels are a a bit of a favorite, like owning a Ferrari, so Dusit bought the Kempinski Group but coughed when they had to finance the rebuilding of the Adlon in Berlins old City Center....

Edited January 6, 2009 by Samuian

[Briggsy]

Firstly when you hold a monopoly in your home market, while it's a licence to print cash, opportunities for growth are limited.

Secondly hotels are very popular overseas investments for super-rich Thais because they already have the customers here, albeit not hotel customers but customers all the same. You will find the Thai-owned hotels overseas often have a high percentage of guests who are Thai and on package tours.

Thirdly, great opportunity to move large amounts of capital overseas and avoid the accusation of currency speculation and profiting from inside BOT knowledge. I think this is what you are hinting at.

[quiksilva]

85m Aus$ is not that much in the grand scheme of things, especially considering his wealth.

As to whether 85M is worth it for that property... How many keys does it have, whats the occupancy like, whats the ARR?

I see this as a way for him to expand the Imperial Hotel chain to overseas markets, whether its worth it depends on the net income, nothing more, nothing less. (I cant see redevelopment as a serious option given residential markets these days)

Edited January 6, 2009 by quiksilva

[Shotime]

It starts to get serious when you talk trillions baht. 80 million sounds cheap.

[neverdie]

85m Aus$ is not that much in the grand scheme of things, especially considering his wealth.

As to whether 85M is worth it for that property... How many keys does it have, whats the occupancy like, whats the ARR?

I see this as a way for him to expand the Imperial Hotel chain to overseas markets, whether its worth it depends on the net income, nothing more, nothing less. (I cant see redevelopment as a serious option given residential markets these days)

I wouldnt mind having a spare AUD$85 million.

[quiksilva]

Me too, but as I said when it comes to players at this level 85m AUS$ is really not that much. Remember that he owns several hotels worth far more than this already, and that is just one slice of his business interests.

Whether the investment is worth it or not depends on the financial performance of the hotel, or whether they can create added value through repositioning or management.

[skippybangkok]

$80M ... it's less than 3% of his net worth ...

Probably financed too from the banks, which received tax payers money as a bail out.

[thaihome]

As CP Group is 14 billion USD per year multi national, all I would read into it they think it might be a good time to invest in Australia (which to my knowledge they have not to date). Doubt it had anything to do with thoughts on the Thai economy.

TH

[bertlamar]

As CP Group is 14 billion USD per year multi national, all I would read into it they think it might be a good time to invest in Australia (which to my knowledge they have not to date). Doubt it had anything to do with thoughts on the Thai economy.

TH

just to clarify, I think CP is not K Charoen, K Charoen is TCC/Beer Chang and made much of his money first of all from the whisky/rum monopoly he used to have, but subquently has made a ton more in just about every business in Thailand a owns hotels around the world including the Plaza in New York I believe as well as the Imperial chain and closer to home, a fair chunk of the Plaza Athenee area stretching to Ploenchit Rd with Univentures.

[skippybangkok]

just to clarify, I think CP is not K Charoen, K Charoen is TCC/Beer Chang

Politely put ! They are most definately different companies........

as a matter of interest, saw the "who's the richest" the other day. As we have seen with Thaksin with pots of cash stashed away overseas, it would be interesting to see how the news papers really detirmine who really is the richest.

[toner]

it's said that the best way to earn money is to drive money to make money, money really can create value, it's a way of accumulating, i wish he could donate the charity when he becomes mentally rich in your country. but for now, lots of money has evaporated .

[bertlamar]

it's said that the best way to earn money is to drive money to make money, money really can create value, it's a way of accumulating, i wish he could donate the charity when he becomes mentally rich in your country. but for now, lots of money has evaporated .

actually, I personally can confirm K Charoen probably gives more to charity off the radar than most; of course Beer Chang does a huge amount of CSR partly because you can't advertise booze (e.g. the soccer academy, the balnkets, etc etc), but I mean out of his personal pocket he and his family distribute what I can only imagine would be tens or hundreds of millions of baht to various charities, schools, etc every year; and it is deliberately done out of the media's eye.

[12DrinkMore]

actually, I personally can confirm K Charoen probably gives more to charity off the radar than most; of course Beer Chang does a huge amount of CSR partly because you can't advertise booze (e.g. the soccer academy, the balnkets, etc etc), but I mean out of his personal pocket he and his family distribute what I can only imagine would be tens or hundreds of millions of baht to various charities, schools, etc every year; and it is deliberately done out of the media's eye.

Why would he want to keep a low profile? IMO the Thais always want to have charitable donations broadcast for all to see how much merit they have made. Modesty is not a word which would come to mind.