THAILAND. Dufry’s partnership with Royal Orchid Hotel (Thailand) to bid for the duty free concession at Suvarnabhumi Airport, Bangkok represents a powerful alliance between international and local forces.
As reported, the partnership – confirmed to The Moodie Davitt Report by Dufry after the original story broke in the Bangkok Post – is one of three parties to have tabled bids for one of Asia’s key airport retail contracts.
The others are long-term Suvarnabhumi Airport incumbent King Power International and another strong combination between Bangkok Airways and Lotte Duty Free (the South Korean travel retail number one and world number two).
Financial offers will be tabled soon.
Asian aspirations
Dufry has long been keen to grow its Asian presence, perceived internally and within the investment community as underwhelming given the importance of the region and the retailer’s leadership in other zones. That imbalance has been improving steadily under the leadership of regional CEO Andrea Belardini but Suvarnabhumi would represent a blue-chip breakthrough of serious scale and status.
To have a realistic chance of wresting such a concession from a well-entrenched, well-regarded incumbent, Dufry needed a very strong local partner. Certainly Royal Orchid Hotel (Thailand) appears to fulfil those credentials.
The listed business is controlled by Grande Asset Hotels & Property, which acquired a 68% stake for US$75.3 million in January 2018. The business was formerly owned by Starwood Hotels (44%), MBK (a family company) and Thai Airways International (24%). Grande Asset extended its ownership of Royal Orchid Hotel (Thailand) to 98.48% in April that year.
Grande Asset’s focus is long-term investment in hotel and real estate development. In the hotel sector, its activities are concentrated on international and globally managed 4-5 star hotel brands. Its portfolio includes several Sheraton properties, The Westin Grande Sukhumvit, Hyde Sukhumvit 11 Condominium, Hyde Sukhumvit Condominium, Hua Hin Blue Lagoon Resort and The Trendy Condominium.
In real estate, the company focuses on short-term return on investment and properties located in prime locations. It also invests in beachfront condominium and housing projects such as the Hua Hin Blue Lagoon Resort in Cha-am.
The 12-man Grande Asset board is headed by Chairman Wichai Thongtang, a powerful Thai businessman who was named Thailand’s 20th richest individual by Forbes.
Vice Chairman of the Board and Chairman of the Executive Committee Dr. Bhichit Rattakul is a Thai politician who served as the Governor of Bangkok from 1996 to 2000 and the Science Deputy Minister of Thailand. He is the son of former Foreign Minister and Deputy Prime Minister Bhichai Rattakul.
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