Singapore-based Castlewood Hotels & Resorts has announced the launch of a new 200-key hotel project near Bang Tao Beach.
Castlewood Group’s in-house hospitality brand, 8over8, will manage the new hotel, which will consist of 200 luxury suites and a private rooftop penthouse. Cornerstone Management has been retained to ensure timely delivery of the hotel.
Two purchase options are available to investors; the first gives buyers a guaranteed return of five per cent for the first three years, then three percent for a further seven years. The second offers a return of five per cent for the first three years, then full revenue from the hotel’s rights of use policy for the following seven years.
Chris Comer, Castlewood Group’s Managing Director for Southeast Asia, commented, “Our team here in Singapore are equipped with a wealth of experience in all types of real estate investment. We looked at various hotel investment models globally and researched as many success stories as we did failures.
“It was apparent that there were real fundamental issues which had not been addressed when developing a lot of these hotels, especially those that were not so successful. One factor was the selection of the right location.
“This is fuelled by the three key factors: existing realistic occupancy rates, existing good average daily room rates and a solid reason for massive immediate growth in demand for the area with a feasible growth forecast, too. For us the area close to Laguna Phuket ticked all of those boxes.”
Completion of the new hotel at Bang Tao Beach in Phuket is scheduled for 2013. Castlewood also recently announced plans to expand their hotel brand to Koh Samui.