Siam Wellness Group, a spa chain in Thailand, will launch its first luxury spa outlet in Yangon, Myanmar, by Q4 2015. The company expects to sign a memorandum of understanding with an international hotel chain by Q3 of this year, before opening its first outlet in the next quarter.

“The fastest and most convenient way to do business in Myanmar is to operate a spa outlet inside a hotel,” Naturn Wiattanakrai, assistant managing director of Siam Wellness told The Nation. “We visited Yangon last year and discussed plans with a few potential partners who are interested in having us manage their spa outlets, or to open spas in their premises.”

The three possible business models under consideration by Siam Wellness are a joint venture, franchise or management contract. Investment in each outlet would require between THB15m (US$0.4m, €0.4m, £0.3m) to THB20m (US$0.6m, €0.5m, £0.4m).

The Thai company was founded 16 years ago, launching its first Let’s Relax spa in Chiang Mai. The group now has 11 spas in Bangkok, Chiang Mai, Phuket, Pattaya and Hua Hin. It operates three spa brands: Let’s Relax, RarinJinda Wellness Spa and Sabaii by Let’s Relax.

“Operating a spa in Myanmar would not be much different from Thailand, as the main customers will be tourists,” added Wiattanakrai. “We will see similarities in service provision.”

Yangon and Mandalay will be the prime locations as they are the two most popular tourist destinations, but the company will also cater to high-income locals.