Destination Capital and Thailand’s KTB Securities (KTBST SEC) have launched DESCAP 1 Private Equity Trust, which will aim to raise 2.5 billion baht (US$79.9 million) and offer an alternative asset class for investor portfolios.
The trust will acquire freehold four-star hotels of 150 to 250 rooms in prime destinations of Bangkok, Pattaya, Hua Hin and Phuket, which are viewed as destinations expected to rebound the quickest after Covid-19.
The investment strategy is to acquire urban and resort hotels, and then renovate, reposition, and rebrand them to increase their value in order to generate meaningful returns to investors.
Utilising the experience of Destination Group with its 24-year track record in Thailand of buying, managing, and selling hotels, particularly during times of distress, DESCAP1 targets a 15 per cent per annum returns with a five- to seven-year holding period.
James A Kaplan, CEO of Destination Capital, said in a statement: “We are pleased to play such an important role to support the rejuvenation of the Thai travel and tourism industry with the announcement of DESCAP 1 Private Equity Trust. This trust will invest in strategic hospitality assets to facilitate re-employment and hotel re-openings to re-launch Thailand as a preferred global travel destination. This could not have been done without the support of our Trustee (MFC Asset Management) and Trust Manager (KTBST SEC).”