Sansiri raises stake in Standard International to drive expansion in Thailand

Sansiri, Thailand’s leading real estate developer, announced its investment to increase its shareholding in Standard International Holdings (SIH), the parent company of The Standard, an American hotel brand, from 37.26% to 59.02%.

Optimistic about The Standard’s potential for rapid global growth, the companies have aligned on an ambitious expansion plan to grow The Standard footprint to 25 open hotels in the next five years including four properties in Thailand in Koh Samui, Phuket, Pattaya and Hua Hin, as well as locations in Milan, Paris, Lisbon, Bordeaux, Mexico City, Jakarta, Melbourne and Chicago.

Wanchak Buranasiri, chief financial officer at Sansiri said: “Since Sansiri’s investment in Standard International in November 2017, we have jointly taken part in developing a growth plan that capitalises on the positive global travel and lifestyle trends. The global hotel market is projected to double its growth rate with hotel revenues estimated to grow 7.8% annually over the next five years. The lifestyle and boutique hotel segment, where The Standard is positioned, is the fastest growing segment within the industry.”

Sansiri has approved in principle Sansiri (US) acquisition in associate company, Standard International Holdings, in the proportion of 21.76% with the total amount of USD 40.45 million. After the investment transaction, Sansiri (US) shareholding in SIH has increased from 37.26% to 59.02% and SIH is now a direct subsidiary of Sansiri (US) as well as an indirect subsidiary, he added.

In less than two years after Sansiri acquired shares in its business, Standard International has announced its global expansion plans that will see 25 Standard hotels open across the world in the next five years.

In July, the hotel chain celebrated the launch of its first property outside the US, with The Standard, London in the King’s Cross neighborhood. In Fall of 2019, The Standard is set to open its first resort in Huruvalhi, Maldives.

Amar Lalvani, CEO of Standard International said: “Standard International is now truly international with the launch of our first hotels in Europe and Asia. With the support and investment from Sansiri, we are well positioned to capitalise on the rapidly growing overseas markets and are on pace to have 25 hotels open over the next five years.”