Nov. 2--Thanks to its prime location, the 42-year-old Asia Hotel is hoping to thrive financially from the Airport Link.

Asia Hotel Group, the operator of the hotel on Phaya Thai Road, spent 300 million baht on renovations, its first in 20 years, in anticipation that guest numbers would increase once the speedy train service opens.

The Airport Link connects the Phaya Thai and Makkasan areas in central Bangkok with Suvarnabhumi Airport. The Asia Hotel is located next to the Ratchathewi BTS station, just one stop from the Phaya Thai station.

The hotel is transforming 600 Thai-classical rooms into a neo-classical design. Half have been finished already. The other guest rooms, function rooms and lobby are scheduled to be completed by September.

"It's the right timing for renovation. We believe the hotel will be in full service right away when the local economy recovers in the second half of next year," said Surapong Techaruvichit, the company's director.

Asia Hotel is in the centre of Bangkok's shopping area and linked with both the Skytrain and the Airport Link.

Though the hotel's facilities are improving, the group will only increase room rates by 400 to 500 baht per night due to intense competition.

He said the hotel also planned to set up a service team to serve its clients at Suvarnabhumi Airport. The hotel will talk with the State Railway of Thailand (SRT) to rent space and open service booths at the train station.

Last month, the hotel's occupancy rate was below 60 percent. The group expects 70 percent occupancy in the coming high season, lower than its usual 80-85 percent, said Mr Surapong.

In the first six months of this year, the company reported a net profit of 24.96 million baht on revenue of 438 million. In the second quarter, it lost 430,000 baht, compared with a profit a year earlier of 542 million, which included a gain of 495 million baht from loan refinancing.

Revenues from the hotel business declined by 58.9 million baht or 41.22 percent due to the global financial crisis and the hotel's renovation work.

Asia Hotel shares (ASIA) last traded on the SET on Oct 26 at 36.75 baht.

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