Hotelcorp Signs to Manage Bel Air Resort Panwa

Hi Bill:
Interesting blog! Appreciate the postings, even though they are based upon flawed assumptions; To clarify: UNO is our brand, not a franchise. Its a fully developed concept with fully developed brand standards. We currently have 3 UNOs signed (in Thailand) with openings over the next 24 months. Total key count in Thailand 450 under that brand. We have a total of 1200 keys signed and started construction in Kota Kinabalu, Borneo - last time I checked that still is in Malaysia. Vietnam is challenging at best given economic conditions and the unavailability of financing. Current live development key count is north of 400. We have just revived 2 projects through new investor take over and these projects continue. As for Thailand, things are looking up. There will be some new announcements shortly. We will update.
The only franchising we do is Ramada, we developed 1000keys total the past 4 years. We have development and Sales & Marketing agreements with Wyndham and Wyndham Vacation Resorts.
Hope I clarified the 'Myth'.
As for Chiang Rai: The hotels are running below 10% - surely for the remainder of the year, even established ones at that level of operation. No one, who understands the destination, expected 'performance' day one in that location. Thats just the challenging environment it is right now for a number of reasons. It is an owners prerogative to explore the best possible management options, there is nothing wrong with that, thats why we have contracts with terms. Most of the time, relationship and reason prevails though. At least, thats how we like to operate.
Regards, B

Bill Barnett responds:
Thanks Bernard good to see how you are moving through these harsh times.

Latest update is that M.L.Vitthya Chakraband, owner of Katiliya is casting around for a new management company for Katiliya due to poor perforamnce...

Bill Barnett responds:
Lets see the response from Hotelcorp who are going to post shortly. Thanks.

Dear Bill and all,
Hotel Corp manages nothing in Malaysia, nor is anything open in Vietnam yet, and they have only project in Hue which is postponed indefinitely. Their claim of 'more than 1000 rooms under management' is a myth, the projects mentioned on their website are either non-existent or not managed by them. They only manage Katiliya in Chiang Rai and Ramada in Khao Lak. UNO is franchised.

Bill Barnett responds:
Thanks for the comments. I have contacted COO Bernard Ollmann who is going to respond to this on the blog shortly, stay tuned.

sir, when do you see a resale market ? what is the incentive to buy an investment property in phuket without a resale market, considering yields would still be very low on properties like this ? D. Glover
Bill Barnett responds:
The resae market is here and alive, and growing. As part of any developing real estate market Phuket is seeing the trade grow in more segments its a healthy thing to see diversity and you cannot only rely on intial buyers, you have to have resales to attract more people to invest int he first place. Yields might be low for the moment but its a long term game and capital appreciation should be a goal, look what interest rates you get at many banks now..zero so long term capital appreciation can be mighty appealing.

interesting..i was looking at a resale apartment there about 12 months ago, i understood CBRE were managing the complex.. thats all now changed ?
Bill Barnett responds:
Hotelcorp will operate as a resort, think the developers need to generate returns to with a hotel management company set up they have distribution. There looks to be more cases of this coming up as so many units are sold as investments and with a slow resale market ongoing yields are important.