La Résidences dream deal for HMD Asia, KS Hotels

INTERNATIONAL REPORT – Usually it's the big brand that buys the small one. The recent acquisition of two Belmond hotels by KS Hotels and HMD Asia is like fish scooping up pelican.

The deal thrusts the two Thailand-based partners into the limelight as Southeast Asian investors that are expanding their hotel ownership in niche destinations in the region, focusing on unique product, social impact and local service culture.

It’s no surprise they went after Belmond’s La Résidence Phou Vao and La Résidence D’Angkor when the chance arose. The hotels fit like a glove with their investment ethos. Both investors are also familiar with the lay of the land, Laos and Cambodia. The former property is located in Luang Prabang, the ancient capital and UNESCO heritage city, while the latter is in Siem Reap, home to the extraordinary Angkor Wat temples.

La Résidence Phou Vao, Luang Prabang, Laos

Such deals are rare, Sokoun Chanpreda, founder, owner and managing director of HMD Asia, told Hotel Investment Today. “The opportunity to acquire these two iconic hotels arose post-COVID, which we believe was unique and would never have been available, and thus it was an interesting investment opportunity,” he said.

“Our dream hotel ownership is precisely the nature of this La Résidence deal – hotels that have history and brand recognition, where we can respect the past and embrace the future, nurturing our service culture, guest experiences and growing the business,” Chanpreda added.

The price remains undisclosed. Belmond would not comment on why it let the hotels go, having even renovated the 56-room Le Résidence D’Angkor just before the pandemic. The hotel is closed since the pandemic and will reopen in 2025 when the new owners complete a refresh of its exterior and interior areas, including putting in new amenities in rooms, said Anthony Lark, executive director of HMD Asia, who oversees the hotel management business of the company. The 34-room Luang Prabang hotel is open, with HMD Asia managing the property effective November 1 when the sale was completed.

Belmond is left with two hotels in Asia, in Bali and Samui, although it still operates a couple of Eastern & Oriental Express journeys in Malaysia and Singapore. To some observers in the Asian hotel industry, Belmond’s hotel development appears to be more focused on Europe, the Middle East and South America than Asia.

Responding to Hotel Investment Today, Belmond said it “continues to explore opportunities to enhance our portfolio with exceptional journeys and iconic properties in Asia.”

A push factor for Belmond may be that Siem Reap is still struggling to recover fully from the pandemic as the China market isn’t back in force. What’s worse is an overhang of room supply from a building boom between 2016 and 2018 as developers saw a rising tide of Chinese visitors to Siem Reap.

Chanpreda described the oversupply of hotels in Cambodia and particularly Siem Reap as “the biggest challenge” for the hotel sector. “Banks are cautious based on this oversupply,” he said.

Nevertheless, he sees value in having a new brand addition to the portfolio. “The outstanding reputation of our team at both Shinta Mani and La Residence gives us a marketing edge,” Chanpreda said.

Pioneering spirit

The acquisition isn't the first between two “best buddies,” HMD Asia’s Chanpreda and KS Hotels’ Owner and Managing Director Eddie Kiasrithanakorn. They previously partnered together in around 2005 on Hotel de la Paix in Siem Reap (now Park Hyatt) when the destination was still a new frontier.

I think Eddie and Sokoun have realized that there are opportunities for them to grow their partnership together as hotel owners. One such opportunity is La Résidence,”

Anthony Lark

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Their pioneering spirit endures. Apart from the latest acquisition, KS Hotels owns or co-owns 10 luxury hotels in Thailand, Laos, Maldives and Australia. According to a 2009 disclosure by IFC, part of World Bank Group, the company diversified from its core business – the assembly and distribution of Honda motorcycles and parts in Laos, Cambodia and Vietnam – into hotels by developing then Alila Cha-Am in Thailand that opened in 2008. The hotel is now So Sofitel Hua Hin.

At press time, Kiasrithanakorn did not reply to Hotel Investment Today’s request for comments on the latest acquisition.

HMD Asia’s Chanpreda on the other hand has made his mark as a philanthropic Cambodian businessman and a respected F&B creator (e.g. Bed Supperclub) and hotel developer. He launched Shinta Mani Foundation in 2004, providing free hospitality training to Cambodians, and micro-financing to empower qualified individuals and families, among others. HMD Asia’s portfolio also includes Shinta Mani Hotels, which has three hotels in operation. Two are in Cambodia, owned by Chanpreda and designer Bill Bensley, and the third is in Nepal, said to be owned by the Mountain Lodges of Nepal.

Chanpreda also owns a Tribe hotel in Phnom Penh, Cambodia, and is developing an 82-room hotel in Koh Russey, an island off the coast of Cambodia's Sihanoukville province. The hotel, opening in February, will be managed by HMD Asia.

“I think Eddie and Sokoun have realized that there are opportunities for them to grow their partnership together as hotel owners. One such opportunity is La Résidence,” said Lark, who is ecstatic about HMD Asia managing the two hotels.

Having opened five Aman resorts including the first in the world, Amanpuri in Phuket, Thailand, Lark is confident the two properties will do well. “We go a long way with the OTAs and DMCs [specialist travel agencies]. They trust us, our products, our rates, our sales and marketing people so we’re able to capture good market share. When Le Résidence Phou Vao opened on November 1 under us, it was fully booked. We’re focused on ensuring there’s no vacuum left by Belmond’s departure, and we will build new markets.”

The hotel has a new general manager, Parisa Pangchan, formerly manager at Trisara Phuket, which was also opened by Lark.

Lark said Luang Prabang is bouncing back. “It’s a small town with a limited number of hotels, so it's easier for it to recover [than Siem Reap],” Lark said.

HMD Asia targets an annualized rate of around $350 a night for the hotel, and around $400 a night for La Résidence D’Angkor when it reopens in 3Q25.

According to Lark, a low-cost base in Cambodia and Laos helps hotels to be profitable. As well, the dynamics of shared resources. “For example, our Shinta Mani Angkor is 200 meters from La Résidence d'Angkor. They are independent of each other, but there can be shared resources in areas such as laundry, engineering and landscaping,” Lark said.