Kasemkij Co, which owns and runs the Cape House, Kantary and Kameo serviced apartments in Thailand, plans to finish two new projects worth a combined 1.4 billion baht in Rayong and Ayutthaya in the fourth quarter this year.

Classic Kameo Rayong will have 200 rooms and open on Oct 15.

Wiwat Tangjitkobboon, the company’s group director, said many factories in Ayutthaya have yet to fully recover from last year’s flood damage.

Expatriates working at the factories, the main customers of Kasemkij’s serviced apartments, have decreased.

Some companies have preferred to cut costs and expenses. For example, many factories that had 20 expats in the past have only one or two today.

“Although the situation in Ayutthaya remains unfavourable, we will move forward to finish our serviced apartments this November,” Mr Wiwat said.

Classic Kameo Ayutthaya, which began construction two years ago, will have 200 rooms while Classic Kameo Rayong will have 200 rooms and open on Oct 15.

Both projects are positioned to offer deluxe rooms, accounting for 70% of total rooms.

The typical room types of Kasemkij’s apartments are studios and one- and two-bedroom suites.

The average price of a studio starts at 2,300 baht a night in a space of 45 square metres.

Deluxe rooms will start at 1,500 baht a night for 35 sq m. The group believes the competitive price will be a key factor boosting business in hard times.

“We expect the average occupancy rate of both serviced apartments to be about 50% in the first year of operation,” Mr Wiwat said.

The company forecasts the break-even point to come in 13 years instead of eight years as in the past.

“Our business concept is slow but sure,” Mr Wiwat said.

“We want to gradually build loyalty among customers. We want the guests to test our products at reasonable prices, and this will result in 60-70% repeat customers.”