Asia-Pacific Hotel And Resort Acquisition And Asset Management

Proven Results

OUR

Strategy & Mission Statement

Destination Capital is a private equity real estate investment company based in Bangkok which focuses on acquiring, renovating and repositioning hotel assets such that they are EDGE compliant and follow a rigorous sustainability protocol in order to unlock value for our capital partners. By using the resources of the Destination Group we not only source off-market opportunities and asset manage to yield higher values upon exit, we also utilize our team of experienced construction specialists to renovate and often re-brand and reposition hotels as value enhancement while pursuing a “Triple Bottom Line” strategy: Planet, People, Profit. We work closely with our capital providers and multinational partners to align interests and stay focused on deal execution and strategy. We typically acquire four-star city and resort hotel properties which in most cases are operated under a franchise with international hotel operators.

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UNWTO Collaboration

Destination Capital is proud to be recognized by the United Nations World Tourism Organization (UNWTO) as a leader in the hospitality industry. Destination Capital has a collaboration arrangement with UNWTO to promote investment in sustainable hotels to help rejuvenate the hospitality industry and to stimulate re-employment particularly affected as a result of the Covid-19 Pandemic.

Destination Resorts

Destination Capital is an affiliate of Destination Resorts, a Thai hotel owner/ operator which currently owns and operates 6 hotels in Phuket, Hua Hin and Koh Samui, totaling 1,420 hotel rooms. DR strongly believes in participation in EDGE and adhering to IFC’s E&S Performance Standards to encourage the hospitality industry to adopt best practices in carbon footprint reduction and social development of local communities.

The World’s First Green Hotel Fund

According to the International Finance Corporation’s (IFC) EDGE Green Buildings, Descap I was the world’s first green hotel fund and followed best practices to ensure EDGE compliance for all assets. This Investment Platform is also committed to operate hotels that adopt environmental conservation and social development in each locale by adhering to the Environmental & Social (E&S) Performance Standards identified by the IFC. 

EDGE Compliant

EDGE is an innovation of IFC, a member of the World Bank Group. This unique program includes certifications of green buildings using EDGE standards and guidelines. By adopting EDGE, Destination Capital endorses the strategy of having a low carbon footprint by including sustainable and renewable energy systems and resource management in our hotels. All of our Hotels & Resorts are either in the process of becoming EDGE compliant or have been certified as edge compliant.

Selected

Investments and Track Record

Hyatt Regency Phuket Resort

Destination acquired this unbranded hotel in 2005 following the Phuket tsunami after it was substantially damaged. The group increased rooms from 121 rooms to 206 rooms, renovated public and private areas, added F&B outlets and a luxury spa. Sold in 2013 at a substantial profit.

Four Points by Sheraton Bangkok, Sukhumvit 15

Destination acquired in 2014 following the red shirt/yellow shirt protests that riveted the Bangkok hotel sector. Streamlined hotel operations, aggressively asset managed the property, and added additional F&B outlets thus resulting in significantly increasing the EBITDA of the property. Sold in 2019 at a substantial profit.

Hilton Hua Hin Resort & Spa

Destination acquired in 2000 following the 1997 Asian Financial Crisis, a 297 room full service four star property branded with Melia Hotel brand. Destination renovated and repositioned the hotel to become the 5 star Hilton Hua Hin Resort & Spa. Increased EBITDA, yield management, added new F&B outlets, new spa, and aggressive asset management. Sold in 2014 at a substantial profit.

Swissôtel Resort Phuket Patong Beach

Destination acquired this unbranded hotel in 2007 following the Phuket tsunami after it was damaged. The group renovated the entire hotel including rooms, public areas, and F&B and rebranded to Swissotel Patong, under the Accor Group Added 8000 sf meeting and ballrooms, added additional F&B outlets including Hard Rock Café, Hooters, On Top Beach Club, and Irish pub. Significantly improved the hotel value over its acquisition and renovation costs. Continue to hold this asset.

Novotel Hua Hin Cha-Am Beach Resort & Spa

Destination acquired this property in 2007. Originally known as the Golden Sands Resort, rebranded as Novotel Hua Hin Resort after substantially renovating all rooms, public areas, additional F&B, additional spa, and upgrading the existing meeting facilities. Through aggressive local marketing and yield management this hotels financial performance has been significantly increased. Significantly imporved the value of the hotel over its acquisition and renovation costs. Continue to hold this asset

Novotel Phuket Karon Beach Resort & Spa

Destination acquired in 2005 after the army coup. Originally known as the Felix Hotel with only 120 rooms, the group expanded the business by acquiring the adjacent unfinished condo project to increase the room count to 224 rooms. After completing a significant renovation and amalgamation of the two properties, increased the room count to 224 rooms, rebranded under the Novotel brand, added a large spa, additional F&B outlets, and luxury plunge pool suites. Significantly improved the value of the hotel over its acquisition and renovation costs. Continue to hold this asset.

Selected

Investments and Track Record

Hyatt Regency Phuket Resort

Destination acquired this unbranded hotel in 2005 following the Phuket tsunami after it was substantially damaged. The group increased rooms from 121 rooms to 206 rooms, renovated public and private areas, added F&B outlets and a luxury spa. Sold in 2013 at a substantial profit.

Four Points by Sheraton Bangkok, Sukhumvit 15

Destination acquired in 2014 following the red shirt/yellow shirt protests that riveted the Bangkok hotel sector. Streamlined hotel operations, aggressively asset managed the property, and added additional F&B outlets thus resulting in significantly increasing the EBITDA of the property. Sold in 2019 at a substantial profit.

Hilton Hua Hin Resort & Spa

Destination acquired in 2000 following the 1997 Asian Financial Crisis, a 297 room full service four star property branded with Melia Hotel brand. Destination renovated and repositioned the hotel to become the 5 star Hilton Hua Hin Resort & Spa. Increased EBITDA, yield management, added new F&B outlets, new spa, and aggressive asset management. Sold in 2014 at a substantial profit.

Swissôtel Resort Phuket Patong Beach

Destination acquired this unbranded hotel in 2007 following the Phuket tsunami after it was damaged. The group renovated the entire hotel including rooms, public areas, and F&B and rebranded to Swissotel Patong, under the Accor Group Added 8000 sf meeting and ballrooms, added additional F&B outlets including Hard Rock Café, Hooters, On Top Beach Club, and Irish pub. Significantly improved the hotel value over its acquisition and renovation costs. Continue to hold this asset.

Novotel Hua Hin Cha-Am Beach Resort & Spa

Destination acquired this property in 2007. Originally known as the Golden Sands Resort, rebranded as Novotel Hua Hin Resort after substantially renovating all rooms, public areas, additional F&B, additional spa, and upgrading the existing meeting facilities. Through aggressive local marketing and yield management this hotels financial performance has been significantly increased. Significantly imporved the value of the hotel over its acquisition and renovation costs. Continue to hold this asset

Novotel Phuket Karon Beach Resort & Spa

Destination acquired in 2005 after the army coup. Originally known as the Felix Hotel with only 120 rooms, the group expanded the business by acquiring the adjacent unfinished condo project to increase the room count to 224 rooms. After completing a significant renovation and amalgamation of the two properties, increased the room count to 224 rooms, rebranded under the Novotel brand, added a large spa, additional F&B outlets, and luxury plunge pool suites. Significantly improved the value of the hotel over its acquisition and renovation costs. Continue to hold this asset.

Destination acquired this unbranded hotel in 2005 following the Phuket tsunami after it was substantially damaged. The group increased rooms from 121 rooms to 206 rooms, renovated public and private areas, added F&B outlets and a luxury spa. Sold in 2013 at a substantial profit.

Destination acquired in 2014 following the red shirt/yellow shirt protests that riveted the Bangkok hotel sector. Streamlined hotel operations, aggressively asset managed the property, and added additional F&B outlets thus resulting in significantly increasing the EBITDA of the property. Sold in 2019 at a substantial profit.

Destination acquired in 2000 following the 1997 Asian Financial Crisis, a 297 room full service four star property branded with Melia Hotel brand. Destination renovated and repositioned the hotel to become the 5 star Hilton Hua Hin Resort & Spa. Increased EBITDA, yield management, added new F&B outlets, new spa, and aggressive asset management. Sold in 2014 at a substantial profit.

Destination acquired this unbranded hotel in 2007 following the Phuket tsunami after it was damaged. The group renovated the entire hotel including rooms, public areas, and F&B and rebranded to Swissotel Patong, under the Accor Group Added 8000 sf meeting and ballrooms, added additional F&B outlets including Hard Rock Café, Hooters, On Top Beach Club, and Irish pub. Significantly improved the hotel value over its acquisition and renovation costs. Continue to hold this asset.

Destination acquired this property in 2007. Originally known as the Golden Sands Resort, rebranded as Novotel Hua Hin Resort after substantially renovating all rooms, public areas, additional F&B, additional spa, and upgrading the existing meeting facilities. Through aggressive local marketing and yield management this hotels financial performance has been significantly increased. Significantly imporved the value of the hotel over its acquisition and renovation costs. Continue to hold this asset

Destination acquired in 2005 after the army coup. Originally known as the Felix Hotel with only 120 rooms, the group expanded the business by acquiring the adjacent unfinished condo project to increase the room count to 224 rooms. After completing a significant renovation and amalgamation of the two properties, increased the room count to 224 rooms, rebranded under the Novotel brand, added a large spa, additional F&B outlets, and luxury plunge pool suites. Significantly improved the value of the hotel over its acquisition and renovation costs. Continue to hold this asset.

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About Us

Destination Group is a leading owner and operator of prime 4-star hotels, hostels, and branded restaurants / food and beverage service businesses across Southeast Asia with extensive presence in Thailand. The Group has 25 years experience successfully investing in the Thai hotel industry. Destination Group has partnered with top global hotel operators such as Hilton Hotels, Marriott Hotels, IHG and AccorHotels as well as leading branded restaurant chains such as Hard Rock Café, Big Boy Restaurants, and Hooters Restaurants.

The Group owns its own F&B brands including Wow Cow Ice Cream, Scoozi Pizza, Drunken Leprechaun Irish Pubs, and Grind Coffee. The Group also owns a major interest in Slumber Party Hostels with 23 Properties in Thailand and Indonesia with over 2,000 beds as well as the Socialtel brand which is our 4 star trendy hotel/hostel brand opening soon in Koh Samui. Destination Group currently owns 5 Accor Managed hotels in Thailand with over 1,400 rooms and multiple restaurant operations across the country.

James A. Kaplan

CEO

James earned a degree in South-East Asian Political Systems from the University of California, Berkeley and a Juris Doctor degree with a focus on Real-Estate Law from Golden Gate University, San Francisco. He has held Senior Development Leadership positions in Asia and Europe at Marriott International, Kerzner International, IHG, Fairmont Raffles, and recently completed his role as Senior Vice President for development at Minor Hotels.

Supakit Eimsamank

SVP - Acquisitions

Supakit earned a master’s degree in International Banking & Finance from Birmingham University, England. and has been a leader in the Thai real estate industry for over 20 years starting off his career with Jones Lang LaSalle.

Ross Mcclellan

Senior Advisor

Ross has resided in Thailand since 2002 and has over 50 years of real estate investment and development experience in Canada, the United States, United Kingdom, Europe and Thailand. Ross is fluent in Thai and trained as a lawyer.

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Investment

Philosophy

Track Record

Destination Group has a proven 24 year track record investing in the Thai hotel and hospitality sector. The management team has significant experience across Thailand and other Asian countries creating value by making disciplined investments and by creating value through renovation, repositioning and management to generate consistent investment returns. With over 100 years of combined hotel deal acquisition, management, and disposition experience among the Destination Capital partners, with a majority of those years spent in Asia, the leadership team is well placed to source assets and create added value.

Partnerships with Global Brands & Hotel Management Expertise

Our partnerships with global brands has included Hilton Hotels, Marriott Hotels, IHG and Accor Hotels. We asset manage our hotels working in conjunction with our global brand partners to ensure maximum profitability over the investment period. In some cases where a franchise relationship yields higher returns and greater flexibility we leverage our in-house expertise to manage hotels & resorts under a franchise arrangement with our brand partners.

Risk Management

Our approach starts on day one when we acquire an asset with clean land titles and thorough legal due diligence. There is detailed due diligence on building code and zoning compliance as well as thorough engineering reviews of any new acquisitions. Once the asset is acquired we study the market and re-position the asset based on market demand to maximize profit. This can include hotel brand selection, restaurant and spa adjustments and renovation of guest rooms. We yield manage our assets with an aggressive hotel asset management philosophy supported by an experienced team of professionals. Administrative matters such as insurance coverage for public liability, business interruption, and fire/theft coverage are monitored and managed along with maintaining current licenses and compliance with local laws and regulations.

Due Diligence

Our approach starts on day one when we acquire an asset with clean land titles and thorough legal due diligence. There is detailed due diligence on building code and zoning compliance as well as thorough engineering reviews of any new acquisitions. Once the asset is acquired we study the market and re-position the asset based on market demand to maximize profit. This can include hotel brand selection, restaurant and spa adjustments and renovation of guest rooms. We yield manage our assets with an aggressive hotel asset management philosophy supported by an experienced team of professionals. Administrative matters such as insurance coverage for public liability, business interruption, and fire/theft coverage are monitored and managed along with maintaining current licenses and compliance with local laws and regulations.

Thailand Hotel Experience

The Destination Group executive team is a full service organization comprised of investment bankers, real estate professionals, asset managers, financial and legal support teams as well as operations, construction and marketing executives to ensure smooth and effective deal execution. Our hands on experience and proven track record with a focus on the hotel and hospitality sector gives us a broad base from which to source and execute hotel acquisitions by following our proven “Five R” approach: Renovate. Re-build. Re-brand. Re-position. Re-capitalize.

Value Creation

We approach our hotel investments with the idea to create value in the underlying hotel asset. This means room rate yield management, creating additional revenue streams in our hotels, operating efficiencies, and aggressive asset management of our hotel properties.

Founding Partners

The Destination Capital team has a wealth of regional experience over the past 25 years and has a proven track record of successful hotel acquisitions, construction projects, hotel repositioning, financing, and asset management supported by a team of experienced executives with broad range of skills from capital markets, legal, taxation, marketing and accounting. Collectively, the 3 principals of Destination Capital have over 100 years of extensive experience in the hospitality industry in Asia, North America and Europe with distressed hospitality workouts, hotel management agreements, hotel acquisitions, operations, renovations and disposal of hotel assets.