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Bangkok airport hotel in strife
The Thai government is reported to be looking at ways to help out the Suvarnabhumi Airport Hotel Company – owner of Novotel Suvarnabhumi Airport Hotel.
Thai transport minister Sukampol Suwannathat is keen to help solve the hotel company’s losses and liquidity problems, according to local reports.
Novotel Suvarnabhumi Airport Hotel has been operating at a loss since it opened in 2006. A management restructuring plan of the hotel is expected to be submitted to the Airports of Thailand (AoT) board next week.
The AoT board awarded the management contract to the Universal Hospitality Joint Venture, or UH Group, which then hired the Accor Group – which owns the Novotel brand – to run the hotel under a 20-year concession.
A source at the Transport Ministry told the Bangkok Post the hotel attributed its losses to construction and other costs which were higher than estimated, and a low number of guests.
In other news from Thailand, Bangkok Airways, after operating as a privately owned airline for 43 years, aims to become a publicly listed company by the end of 2013.
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