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Singapore Group Furama Out Of Two Phuket Hotels

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Posted: 02 Nov 2010 | 6:00 am

The hotel owner of two Patong hotels taken back management of two properties operated by the Singapore management chain Furama International.

Both properties are located in Patong, and had been branded as the 109 room FuramaXclusive and 129 key FX Resort.

thephuketinsider contacted both hotels and the management chain who confirmed the change in operator. It's understood the properties have entered into an arrangement with the Russian based tour operator Pegas-Touristik. The later is a large supplier of inbound tourism traffic from Eastern Europe and charter flights to the resort island.

A report published by TTG Asia has been quoted saying that legal issues are involved in the dissolution between the two parties.

For Phuket the rise of Eastern European markets has been meteoric and clearly hotel owners want to tap into the growth stream. One issue though that many industry experts agree is that mono-sourcing hotels can be dangerous when trying to sustain year round occupancy.

In the past Scandinavian-centric resorts have found that in many cases changes in travel patterns and seasonality could be a volatile business mix.

As the local tourism industry continues to view larger hotel brands with envy, the chance of more conflicts between hotel owners who do not have hospitality in their core expertise and overseas operators is sure to rise.

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You have given a sensible and moderate assessment of the risk of any likely self inflicted pain for the owners in the future regardless if seasoned advice was behind either decision, whether that to link with a particular operator and now to part ways perhaps prematurely. In today's competitive hotel world, all investors need to ensure that they are building right for clearly defined and multiple markets. Changing horses in mid stream always risks drowning for both rider and horses!
 
Kevin Murphy, 02 Nov 2010 | 5:14 pm

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