AWC to invest in Hotel Plaza Athénée New York
A flexible investment model supports AWC’s growth-led strategy by acquiring 18% of shares with the call option to acquire the remaining 82% within 10 years, with no burden on its balance sheet and increasing the return on investment.
Asset World Corp Public Company Limited or AWC, Thailand’s leading integrated lifestyle real estate group, received approval at an Extraordinary General Meeting of Shareholders to acquire the shares of Hotel Plaza Athénée New York, an iconic heritage building with a rich history.
The property is a freehold asset located in the heart of Manhattan, one of the world’s top destinations, and recognized as one of New York City's best hotels for almost a century.
The THB 7.789 billion acquisition gives AWC ownership of the Plaza Athénée brand in the US and Thailand, connecting two iconic heritage buildings – the Hotel Plaza Athénée New York and EAC (East Asiatic Company) building in Bangkok, which will serve as the reception for AWC's "River Journey Project" by the Chao Phraya River to promote river tourism in Thailand.
Wallapa Traisorat, AWC's Chief Executive Officer and President states, " AWC’s partnership with Nobu Hospitality to develop iconic hotels – Plaza Athénée Nobu Hotel and Spa New York and The Plaza Athénée Nobu Hotel and Spa Bangkok – will expand our ultra-luxury client base while strengthening AWC’s brand value globally. I have great confidence that this project will be an incredible success thanks to AWC’s strengths and expertise in the real estate industry and its focus on creating integrated lifestyle value. That success will be driven further by combining our experience in partnership with the world’s leading hotels, together with the strength of the Nobu Brand, ensuring this investment creates a new benchmark for the hotel and tourism industry and enhances ultra-luxury tourism destinations."
Under the agreement, AWC will invest THB 7,789 billion in Hotel Plaza Athénée New York and townhouse building and includes the ownership rights of the ‘Plaza Athénée’ brand in the US and Thailand without any additional cost.
AWC will first acquire 18% of the shares in Hotel Plaza Athénée New York at a value of THB 1.402 billion and will acquire the remaining shares (Call Option) of 82% within 10 years.
This flexible investment will support AWC’s exponential growth, as a model of the ‘AWC Growth Fund’. Moreover, it also ensures AWC will have no burden on its balance sheet during the development process and enables risk mitigation from investment ventures, within the Company's investment proportion.
Under this investment, AWC will receive all development profits and will benefit from the ability to use the Plaza Athénée brand for future projects and the growth of the Plaza Athénée brand once those projects are operating.
"This investment will create synergy value by enhancing AWC's portfolio through the development of these two iconic hotels: Plaza Athenee Nobu Hotel and Spa New York and The Plaza Athénée Nobu Hotel and Spa Bangkok which will be the reception hub for the ‘River Journey Project’, connecting AWC properties along the Chao Phraya River, creating an ultra-luxury experience through these two iconic heritage buildings in two major global destinations, Bangkok and New York.”, Wallapa added.
