Asians Copy West in Travel & Consumption Patterns
LOS ANGELES, Sept. 12, 2018 /PRNewswire/ -- The Auran Group, the investment arm of the New Nordic Group, an Asian hospitality and real estate development company, is raising capital to take advantage of the growing number of Asians entering the middle class. 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% 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% 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. 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% of its population living in poverty, to just 7.2% 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 night life and lush tropical surroundings.
About the Auran Group
The Auran Group is the investment arm of the New Nordic Group, and is charged with finance and development of the new hotel and other development projects. It has been involved in the creation of approximately $500 million worth of investment assets. Many of these projects have been in the South Asian region, providing investors with robust ROI.
Best Western Hotels and Resorts will manage the property once it is completed; however, it is not involved in the private placement transaction. Auran's management team has decades of experience in international property development and management, finance, hospitality, sales, travel and renewable energy.
See the company's website at aurangroup.com.
About the New Nordic Group
This hotel project is one of 50 that the New Nordic Group has built on Pratamnak Hill, Pattaya. In addition, they have developed and constructed condos, apartments, villas and hotels holiday villages that include leisure and retail facilities.
The New Nordic Group provides real-estate options for those looking to generate income, or those simply seeking a property for personal use. The New Nordic Group offers condominiums and a range of real-estate related investments. These products give the investor a choice of terms, interest rates and capital appreciation.
Both the New Nordic Group and Auran Group operate under the regulations set down by The Securities and Exchange Commission (SEC), which enforces securities laws and regulates the security industry in the U.S.
See the company's website at newnordicgroup.com.