Hotelier ventures into villas for sale

       Astudo Hotel & Resort Group, a local developer and hotel management company, has allocated a 500-million-baht budget to develop residential units on its properties.
       The company last week launched sales of pool villas at its X2 Kui Buri resort, in Prachuap Khiri Khan province. Residential sales at X2 Samui on Koh Samui will start next month and at X2 Koh Kood, in Trat province, near the year-Unit price end, said Anthony McDonald,the CEO of Astudo.
       X2 Residences in Kui Buri will require an investment budget of 150 million baht with each villa priced at 3.5 million baht.
       "After the launch of pool villas, we got a warm welcome from our regular customers. Our property is very unique particularly in terms of design. Above all, the villas are not only summer houses but can generate money for owners as well because we also provide a management service with a guaranteed rental return of 5% to 7%," he said.
       Under the five-year management contract, an owner can stay in the villa for up to 60 days per year and rent it out for the rest of the time, for which Atsudo will charge a management fee.
       A 50:50 revenue share between Atsudo and the villa owner is another option which allows the owner the freedom of an unlimited stay.
       Mr McDonald said those who buy the villa as an investment can break even within seven to 10 years. Foreigners can buy a 30-year leasehold.
       At present, Astudo has four of its own
       properties and also manages another six.
       Mr McDonald B3.5m
       said the company is expanding into the both the Asia Pacific's hotel management and residential property markets.
       It expects to close deals in Cambodia and Bali this year and is also in talks with a developer in the Maldives, he said.
       The average year-to-date occupancy rate at the firm's 10 resorts was 50%while revenue rose by 20%, said Sorathep Rojpotjanaruch, the company's group vice-president for business development.
       The company plans to launch a new brand of budget hotel called The Case Hotels. The first properties, in Manila,the Philippines, and Bangkok, are scheduled to be launched next year.