Dusit takes over a resort in Maldives
Maldives Promotion House – Last Wednesday Dusit’s board of directors approved the investment for the acquisition of a resort in Maldives. It will be conducted by a subsidiary known as Dusit Thani Properties Plc. The board has also approved a non-refundable deposit payment of USD500,000, for the exclusive rights for the appraisal of Baa Atoll’s Mudhdhoo Island.
The island has an area of approximately 186,000 square metres. The hotel building is composed of 100 villas, 1 spa building and 3 restaurants and bars as well as utilities relating to the resort business.
According to the Stock Exchange filings, the resort is under construction. However approximately 80 percent has been completed, along with the leasehold rights for the 33 years commencing from year 2011 to 2044 in amount of USD60 million. The company expects another USD17 million as the cost to complete the hotel and cover the pre-opening expenses.
According to Dusit Thani Properties, while they will hold at least 50 per cent of the shares, they are looking for a co-investor.
“The company has carefully considered the growth and profitability of this project based upon the high potential for tourism of Maldives which has been growing stronger continuously. Despite the world’s economic recession and financial crisis during the past two years, Maldives has proved to be resistant to such adverse circumstances as can be seen by a slight drop in the number of tourist arrivals compared to those of other tourist destinations,” a DTC statement read.
“In addition, given the fact that 5-star hotels in Maldives market have earned higher average room rate and occupancy rate than other locations’-not to mention, Maldives’ year-round tropical climate which can accommodate the tourists throughout the year, the company’s investment in Maldives is, therefore, deemed to have good returns which will eventually help increasing the parent company’s revenues and expanding the reach of our brand into one of the world’s most popular tourist destinations,” the statement concluded.