BTS Group Holdings Plc wants to acquire another hotel chain in Europe as it looks to increase its global assets, reports local media. The company could spend up to THB10 billion as it looks to increase its average annual net profit growth of 25% in the next 5 years.
“There’s the possibility we might acquire more hotel chains in Europe to expand our hotel business and build a strong global presence,” says BTS Group Chairman Keeree Kanjanapas to the Bangkok Post.
The company has already opened talks with 2 hotel chains in Europe, but their names have not been announced. The 1st hotel company operates wellness resorts in central Europe while the 2nd hotel chain runs smaller hotels in inner city locations. It has hotels in France, Germany, the Czech Republic, and Spain.
BTS Group is eager to increase its presence in the hotel market abroad. Earlier this year it purchased Vienna International Hotel Management AG (Vienna House) through U City Plc, an affiliate company it owns 35.6%t of. The deal was worth THB12.3 billion and saw BTS Group takeover 16 hotels and the operations of 8 more properties in Germany, the Czech Republic, Poland, Romania, Austria, Belarus, France, Russia, and Slovakia.
BTS Group is looking for permission from shareholders that will allow it to restructure and transfer all of its property businesses to its U City affiliate. These businesses include a 50% joint venture that operates the U Hotels & Resorts, Eastin Hotels, Eastin Residences, and Eastin Easy hotel brands and over 20 joint venture condo projects. A number of undeveloped land plots owned by another BTS Group subsidiary would also be moved to U City.
“If the restructuring plan is approved, U City will no longer be a small real estate company, with its business spanning the globe. We expect it will soon be able to start paying dividends to shareholders,” says Keeree.