The Standard looks to ski spots after expansion

The 10-year-old US party hotel chain The Standard is looking at ski resort towns after pinning 12 locations in cities and beach destinations worldwide, including four in Thailand over the next five years.

Chief executive Amar Lalvani said the company is exploring locations in Utah in the US for the first ski resort in its portfolio as the activity attracts the younger generation, the hotel’s core target group.

“The ski resort under our concept will feature a large outdoor hot tub, fitness and wellness treatment as ski lovers want to relax after having fun on the slopes,” he said. “Onsen and nightlife activities are another feature.”

Known as a boutique hotel that breaks norms and encourages guests to enjoy public areas, The Standard Hotel plans to expand in 12 cities in eight countries with a total of 2,190 rooms, scheduled to open from 2020-23.

The Standard was one of six overseas companies that received investment from SET-listed developer Sansiri Plc in 2017. By spending US$58 million, Sansiri became a major shareholder with a 35% stake.

In Thailand, The Standard will manage four hotels at four beach destinations including Samui with 87 rooms, Nai Harn in Phuket with 260 rooms, Hua Hin near The Railway Hotel with 169 rooms, and Pattaya with 293 rooms.

Sansiri will invest in the latter two, while the others will receive investment from landlords, said Supakorn Vejjajiva, Sansiri’s board director and senior adviser.

“We will rebrand our Escape hotels in Hua Hin, Khao Yai and Patong Beach in Phuket, with the new brand being managed by The Standard next year,” said Mr Supakorn.

The Standard aims to have 25 hotels by 2024 with growth of 7.8% per year. The existing six hotels total 1,194 rooms, distributed with five in the US and one in London that opened in June. Average occupancy is 80%.

In October this year, the hotelier plans to launch The Standard, Huruvalhi Maldives, with 115 villas under a new concept promoting solo travellers and groups of friends, not merely honeymooners.

Mr Lalvani said revitalising abandoned buildings on plots owned by Thailand’s Treasury Department is another tactic. It will consider the history of buildings and neighbourhoods as a priority.

“We are not worried about a hotel oversupply in Thailand’s major destinations as this is cyclical and our investment is for the long term,” he said. “The best protection against oversupply is differentiation.”