KBank and WELLNESS Departmentstore launch WELLNESS leasing Targeting 1 billion Baht in loans for Thai hotel/spa businesses

Stocks and Financial Services Press Releases Wednesday May 9, 2018 14:14
Bangkok--9 May--KASIKORNBANK

Thai hotel and spa business operators are looking forward to the first cooperation between KASIKORNBANK (KBank) and WELLNESS Departmentstore Co., Ltd. – a leading provider of hotel and spa amenities. The two parties are launching "WELLNESS leasing" business to provide one-stop service including financial facilities and knowledge for hotel and spa customers. This year, total loans are targeted at one billion Baht, with special package of 10-year installment and 6-month interest free periods, in concurrence with the promotion of Thailand as the world's top wellness tourism hub.

Mr. Pipavat Bhadranavik, KBank First Senior Vice President, said Thai spa businesses have a potential for further growth, in line with the worldwide health-consciousness trend that is thriving. Aesthetic, anti-aging, spa and wellness tourism businesses in Thailand reported a total market value of as high as 136.5 billion Baht in 2017. According to the Center for Economic and Business Forecasting, University of the Thai Chamber of Commerce, the spa business is one of the top five promising businesses for investment in 2018, taking into consideration its sales turnover, costs, risk factors and competition. Besides being one of the most favorite tourism destinations, Thailand has been rated by Bloomberg as the world's top wellness tourism destination of 2017, as a consequence of our impressive medical service and joint effort of the public and private sectors in transforming the country into an international medical hub.

To promote Thai hotel and spa businesses in response to the expanding tourism market, KBank has joined force with WELLNESS Departmentstore Co., Ltd. in the "WELLNESS leasing" project, wherein KBank will offer financial facilities, while WELLNESS Departmentstore will screen customers with growth potential and positive business background.

KBank is going to grant loan for hotel business, featuring long-term loan and overdraft loan (OD) with repayment period of up to 10 years offered to registered hotel operators, and loan for spa business which includes long-term loan, OD and promissory notes (P/N) with term not more than 10 years.

Moreover, loan packages are also offered to applicants requesting loan within March 31, 2019 who are entitled to a zero percent interest rate plus a special installment plan for a period of six months for the loan amount not exceeding three million Baht. The privilege is intended to facilitate our customers to start their business with confidence, especially with the support of relevant knowledge from the Thai Hotel and Hospitality Management Association (THMA) and Thai Spa Association for their sustainable business operations. KBank forecasts that there will be no less than 100 participants in this loan program which is expected to offer around one billion Baht in loan this year.

Mr. Songwut Trithepchulyakul, CEO & Founder WELLNESS Departmentstore Co., Ltd., said that one of Thailand's major income sources is from the MICE industry. Thai hotels and spas have gained steady popularity as the number of MICE tourist arrivals to Thailand exceeded 30 million many years ago. To cash in on growth of the MICE market, the company has decided to launch the first of its kind WELLNESS leasing and consulting business in Thailand, aimed at supporting new investors wanting to tap into the hotel and spa businesses, or existing entrepreneurs seeking to renovate their hotels and spas. The company focuses on offering a one-stop service, covering investment, procurement and training consulting, as well as after-sales service. Our customers will be entitled to special credit conditions from KBank and business know-how assistance from THMA and Thai Spa Association, thus allowing them to operate businesses smoothly with sufficient liquidity and use new technologies and innovations in their operations. The company is upbeat that those participating in our program will receive numerous privileges that will help support the Thai hotel and spa businesses toward sustainable growth, thus yielding positive effects for the Thai economy and enhancing the competitiveness of our hotel and spa businesses.


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