Like their Western counterparts, they are increasingly seeking leisure time abroad. Auran is raising investment capital for the Auran Markus Hotel, LLC in Pattaya, Thailand, which will begin construction in early 2019.
“If you look at the trajectory of Asia’s middle class, they already outnumber the U.S.’s and Europe’s. But what is even more compelling is that they’ve done this in a few short decades,” said Kurt Svendheim, CEO of Auran and the New Nordic Group.
Asia’s middle-class growth “on fire”
One of the world’s most remarkable feats over the last 100 years has been the growth of the Chinese middle-class. According to a recent McKinsey report, 76 per cent of China’s urban population will be middle-class by 2022. That’s 730 million people, over twice the population of the entire U.S. In 2002, only 4 per cent of China’s urban population was classified as middle-class.
An article that appeared in the South China Morning Post noted that by 2030, it is estimated that over 2/3 of the world’s “middle-class” will live in Asia. The middle-class expansion is happening in other Asia countries too. The World Bank noted that Thailand’s poverty rate has dramatically declined from having 67 per cent of its population living in poverty to just 7.2 per cent today. The Philippines now estimates that a third of its population has attained middle-class status, this according to the Philippines Statistical Authority.
Travel and tourist “takes off”
A key characteristic of middle-class status is the desire to travel. The Chinese are now replacing the Japanese tourists who crowd Time Square and the white sandy beaches of Thailand.
“We’re seeing an increasing number of Chinese visitors to our properties in Thailand, Cambodia and the Philippines,” said Kurt Svendheim. “More and more folks from around Asia are enjoying what Westerners and the Japanese tourists have been doing for decades.”
Auran Markus Hotel in Thailand: financing and construction
New Nordic and Auran are developing the Auran Marcus Hotel, which is an up-market hotel in one of Asia’s most popular tourist destinations, Pattaya, Thailand. The New Nordic Group is a significant investor in this $20 million project.
Auran Group LLC, based in Los Angeles and Singapore, is a wholly owned subsidiary of New Nordic Group and is issuing a private placement offering of $15 million. The +150-room branded hotel will be part of the sprawling New Nordic Group Pattaya Holiday Village which attracts thousands of guests from Asia and around the world. The new hotel complex will benefit from New Nordic’s 400-unit condo development which is right next door. Construction will begin early in 2019. Considered by many as one of Asia’s “hottest” vacation resort areas, Pattaya features beautiful beaches, a lively nightlife and lush tropical surroundings.
