Raffles to manage Resort in Phuket

Raffles International Limited, through its subsidiary Raffles International Hotels & Resorts (Thailand) Co., Ltd., has signed an agreement today to manage a luxury resort in Phuket, Thailand.

Named Raffles Resort Phuket, it will comprise a 79-room hotel and spa, with restaurants, bars and recreational facilities. It will be located in an area on a headland at the tip of the Andaman Peninsula, south of Kata Noi. The plot is bound by the sea to the north, south and west and is about a half an hour drive from the airport. Raffles Resort Phuket is scheduled to open end 2006.

The development will also include 30 luxury residential villas, to be built in different phases, to complement the resort and spa. The residential villas will have picturesque views of the Andaman Sea with many having full sea frontage.

In the last five years, Phuket has seen a double-digit growth. According to statistics provided by the Tourism Authority of Thailand, Phuket sees an average of 3.5 million visitors a year, spending an average of five days. This project will provide a good opportunity for Raffles International to enter such a buoyant resort market as Phuket and further strengthen the Group's presence in Thailand.

As part of the agreement, Raffles Holdings Limited, through its subsidiary Raffles Corporation (Thailand) Pte. Ltd., will acquire a minority interest of 20% each in three joint ventures with Andaman Peninsula Co. Ltd. to develop the resort in Phuket. The three joint venture companies are Raffles Properties  Thailand) Co. Ltd, which will own the hotel; Raffles Villa (Thailand) Co. Ltd, which will own the villas; and Raffles Development (Thailand) Co. Ltd, which is the development company for the project.