Targeting Hospitality and Real Estate Investments to Support Growth in Thailand’s Tourism
Bangkok, January 16, 2024 – CG Capital, a private equity fund business, has officially started its operations to generate above-market returns for investors. In launching its first private equity fund, the Chirathivat family, led by Mr. Phoom Chirathivat, joined forces with leading blue-chip institutional investors with fully committed capital of 10,000 million baht to target investments in hotels and other tourism-related. businesses in key Thai tourist destinations. The first investment announced is a 5,000 million Baht lifestyle mixed-use project in Phuket, which will include “The Standard Residences, Phuket Bang Tao” and “The Peri Hotel Phuket Bang Tao” a boutique hotel managed by Standard International.
Mr. Phoom Chirathivat, Managing Partner and Co-Head of CG Capital, noted that Thailand’s tourism has recovered and expanded rapidly post the COVID-19 pandemic as evidenced by the rising number of tourists visiting Thailand during 2023, which topped 28 million people. He expressed confidence that the number of foreign tourists will soon bounce back and exceed pre-COVID-19 levels. As a result, the outlook for related businesses in the tourism sector is promising with strong growth potential and CG Capital’s first private equity fund was established to capitalize on this development.
Mr. Soravit Chairoj, Managing Partner and Co-Head of CG Capital, further explained that the company has already launched its inaugural fund with a number of blue-chip institutional investors joining the Chirathivat family with total fully committed capital of 10,000 million baht, with the objective to invest primarily in Thailand’s tourism businesses such as investments in hotels, serviced residences, amusement parks, water parks and related mixed-use projects. Major tourism destinations are targeted including Bangkok, Phuket, Samui and Pattaya. The Fund is expected to invest in 3-5 projects annually.
Mr. Phoom Chirathivat also added that CG Capital will launch its first project in Phuket with a project value of 5,000 million baht. The fully integrated and masterplanned lifestyle resort project will include “The Standard Residences, Phuket Bang Tao”, a luxury resort condominium in Thailand from The Standard, and “The Peri Hotel, Phuket Bang Tao” a boutique lifestyle hotel to be managed by Standard International as well. The project’s location at the heart of Cherngtalay – Bang Tao area is one of the premium spots in Phuket attracting tourists from all over the world and in close proximity to shopping areas and famous restaurants in Phuket, such as Boat Avenue, Laguna Golf Club, Porto de Phuket, and Blue Tree. This project is expected to be launched in April 2024 and completed in 2026.
“The Fund was established with confidence in the bright future of Thailand’s tourism sector, as we trust that in the next 3-5 years, we will continue to see growth in both quantity and quality of tourists, including expats and digital nomads who consider Thailand as one of the top destinations in the world. Investing in high-potential projects will help support the development of tourism in Thailand and allow investors to have better opportunities to earn strong returns on their investments. At present, private equity is an alternative investment class that attracts institutional investors due to the agility in management, systematic investment process and criteria, and value creation. Accordingly, it is earning larger capital allocations in leading institutional investors’ portfolios globally.” Mr. Soravit Chairoj concluded.
