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When you say your name “Grand Hyatt Erawan Bangkok” Many people know it, but many people may not know it. I am not familiar with the name, but if I say “Era Buddha Crossroads”, everyone will shout. Because it is known to both Thais and foreigners. And used to pay tribute to the four-faced Buddha Brahma Ratchaprasong Crossroads
But here, on a land covering nearly 10 rai, few people know that this is land that is government property. In the era long ago, who wanted to build a hotel in this place to receive Thai and foreign tourists. But how could the building or business not be successful? Therefore, there was a protest to pay tribute to the sacred things. Therefore, people held a ceremony to ask for permission to place the holy objects in the area, and a ceremony to set up a Brahma shrine was held. It has been there for a long time until today.
The Erawan Shrine is located in a prime area of more than 10 rai. There is also the Grand Hyatt Erawan Hotel Bangkok, which was donated by the government. Sahathai Hotel & Tourism Co., Ltd. It is the person who manages and protects the interests. Because it is a state-owned enterprise 100% controlled by the Ministry of Finance, and there are also Thai Union Hotels, etc. Sign a joint venture agreement with the company Amarin Developments Ltd. The company Erawan Hotel Co., Ltd. was established to lease land in the area. Effective July 2, 1991, the lease term was 30 years, with the rent increasing every 10 years as follows:
- For the first 10 years (1991 to July 1, 2001), the rent was 7 million baht per year.
- The second phase (July 2, 2001 – July 1, 2011) rent is 10.92 million baht per year.
- The annual rent for the third phase (July 2, 2011 to July 1, 2021) is 14.12 million baht.
The contract has now ended and has been renewed year after year by signing a Memorandum of Understanding (MOU).
At that time it was a joint venture between Saha Hotel and the private sector Amarin Development Company Limited, whose founders were from 3 major families, namely the Wongkusolkit family, the Wattanawit family group and the Jenwattanawit family group. The company that managed the business was named: Erawan Hotel Company Limited.
But it went through multiple economic crises and changed its name when times changed.To date, the operator of Grand Hyatt Erawan and many other hotels across Thailand is Erawan Group Public Company Limited.
And in March 2024, the State Enterprise Policy Council (SOE), chaired by the prime minister, passed a resolution approving the joint hotel and tourism company and Tanara Asset Development (SCB) to accelerate discussions on how to do this for maximum benefit and value, as land prices in the area are worth tens of billions of baht.
The government gets billions of baht in return for the land, even though rental prices rise every 10 years.
Therefore, this is something that United Hotel Tourism Corporation and the Bank of Thailand need to think about and analyze. Using valuable land is in the best interests of the country, including bidders, tenants or hotel business managers who must be able to stay and government officials to receive appropriate benefits.
It may be time for the state to cancel the contracts for leasing state-owned properties to the private sector. Those whose contracts have expired should be brought back to revise the land rental prices. As much as possible in line with the current situation, the case of Grand Hiate Hotel can be used as a case study.
Recently, the Bank of Thailand has held talks with Saha Hotel and Tourism Company. It is agreed that it will take 4 months to hire a financial consultant to study all the operational guidelines, after which BAAC will submit all the details to the Ministry of Finance for consideration. It will be submitted to the school student committee for review and must be reviewed and approved by the National Enterprise Private Investment (PPP) Policy Committee and submitted to the Cabinet for approval according to the subsequent steps.
First, the results of the financial return analysis must first be considered in detail to determine the operating guidelines for the Bank of Thailand and the Joint Hotel and Tourism Bureau. The merger must first be agreed upon, otherwise the negotiations will not succeed at all.
At the same time, the value of that land must be reassessed in line with current conditions because the rents that occurred 30 years ago have now increased significantly in price.
“Nakalatiphak Saengsanit” Managing Director (Business Development) Thanarak Asset Development Co., Ltd. Said that he has continued negotiations with the United Hotel and Tourism Association after receiving the assignment from Royal Thai Army personnel. Looking for operational guidelines Recently, it was agreed that a financial consultant must be hired to consider all the details. It is expected that by the end of this year it should be clear which direction it will run.
“I admit that it is definitely not easy and simple to do this. Because there are many factors involved. Since the contract was signed 30 years ago, the Bank of Thailand will follow the task and do its best. In order for the state government to get the most benefit from the land in the Ratchaprasong intersection area. It is a prime location. At the same time, the survival of private enterprises must also be taken into consideration. You have to strike a balance,” said Nakhotipak.
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