Saudi Prince to Sell Movenpick Resort and Spa?
Karon Beach’s spectacular and prized Mövenpick beach front resort has been put on the market by broker Jones Lang LaSalle Hotels with a price guide of around AUD$151,000,000. The 362 unit resort is located on Karon Beach Road and directly opposite Karon Beach and sits on close to 83,000 square meters of beach front property.
The Mövenpick resort was just recently purchased in 2006 by Kingdom Hotel Investments which is controlled Saudi Prince Prince Alwaleed Bin Talal for around AUD$112,000,000. The sale of the the Movenpick resort follows a recent number of hospitality assets that Saudi Prince Prince Alwaleed Bin Talal has sold.
The Kingdom Hotel Investment Portfolio has 22 hotels across 15 countries with 6 other Mövenpick branded properties. What is interesting is that KHI 2010 earnings report showed that this Phuket property was one of the biggest contributors with increases in RevPaR of 37% in 2010.
This shows that the property has performed very well during the Global Financial Crisis but the property might be needing a renovation soon to keep it at the top of places to stay in Phuket. The Mövenpick property is ranked #3 in hotels to stay in Karon Beach with over 570 reviews on TripAdvisor.
It is likely the new owner would consider keeping the Mövenpick brand as it would be the 4th re-brand of that property since the Karon Villa Resort was first opened in 1984. The location has also just introduced Mövenpick Residence Karon Beach which is a new residential development comprised of 5 low-rise buildings featuring a total of 30 contemporary two bedroom apartments.
The other reason a new owner might consider keeping the Mövenpick name would be that last year the Mövenpick group announced an expansion plan into Thailand with 3 new properties in Koh Samui, Chiang Mai and Bangkok. The new Thailand locations will be:
- Mövenpick Hotel & Residences Bangkok
- Mövenpick Resort & Spa Mae Nam Beach Koh Samui
- Mövenpick Suriwongse Hotel Chiang Mai