Fico diversifies into hotel management

       Fico Group, a diversified conglomerate,is moving into the hotel management business with a goal of managing at least six hotels in the next five years.
       Fico bought a half-stake of Eugenia Hotel on Sukhumvit Soi 31 and made the property its prototype boutique hotel before deciding to manage others. Fico then entered a 50:50 joint venture,Eugenia Fenix, with a Taiwanese designer, the hotel's co-owner, to offer hotel management services.
       The 12-room Eugenia Hotel, which presents a colonial touch and homey feeling, is scheduled to relaunch in the next fewmonths after adding a spa and bar. Average occupancy is 70% now.
       "It was love at first sight when I went to the hotel," said Sofi Sui, Fico's chief operating officer."It is not just a hotel but it has history and a warm atmosphere unlike other hotels. I believe that many people want to own a hotel like this but they do not know how to do it."
       Fico is in talks with local and international investors as well as an investment fund in Hong Kong about a similar hotel project in the future. Fico will be the investor and Eugenia Fenix will manage the hotel.
       "They are interested in our project and some of them are considering coinvesting with us. We expect to see another Eugenia Hotel in the Sukhumvit area in 2010," she said.
       The company wants its hotel brand to differ from others in terms of de' cor and food, something it feels small hotels need to take seriously.
       Eugenia Hotel is already listed in the Relais & Chateaux Fine Hostelries of the World and will be managed personally by Ms Sui, who is also the CEO of Eugenia Fenix.
       Fico is also investing 4.2 billion baht to develop four properties: the 380-room Novotel Fenix Ploenchit and the 176-room Muse Hotel, expected to open in the fourth quarter of 2010, the 301-room Holiday Inn Sukhumvit 22, due to open in early 2012, and a Marriott Hotel on Samui to open in two years.
       The company also allocated 450 million baht for two more projects. It will spend 200 million baht to renovate the 150-year-old governor's mansion in downtown Phuket into an entertainment club and 250 million baht for a facelift of the Novotel Fenix Silom.
       Ms Sui said Fico was confident in Thai tourism. Thailand offers value for money, more attractions than most countries, and cheaper hotel rates than Hong Kong and Singapore, she said.
       "I do think travellers will slowly come back this year but they should obviously pick up in the second half of 2010 when the global economy is expected to recover," she said.
       The group also owns the Grand Millennium Sukhumvit, Interchange Tower,and the Exchange Tower in the Asok area, and a premium serviced apartment in Lang Suan.