Expansion Updates
This update is focused on expansion. Delays have been the defining challenge of this period, and the most material development is Thonglor running 35% over budget. We want to be direct about what drove that, what we have decided, and why. Details below.
Thonglor — 6 courts 35% over budget
- The project is 35% over its original budget. Two factors account for almost all of the overrun, and they are different in nature — one was forced on us, one we chose.
- Land condition (forced). Ground conditions at the site required a substantially heavier micropiling investment than the original engineering assumed. This is foundation work — not discretionary, and not something that could be value-engineered away without compromising the structure.
- Air-conditioning (chosen). Since we set the original budget, competitors in Bangkok have introduced air-conditioned courts, and the offering has been very successful. Playing conditions have become a real basis of competition in this market. We took the decision to add full AC rather than open a flagship that is already behind the market on the single most visible comfort factor.
- We remain committed and are pushing this project forward. Thonglor is our flagship. We consider it essential to holding a leading position in the market — it is the venue that sets the standard the rest of the portfolio is measured against, and the one that makes our premium positioning legible to players, partners, and brands.
Cloud 11 / CP Group One month behind plan
- Running approximately one month later than the original plan
- Court installation is being completed as we speak — this is the most tangible progress in the portfolio right now
- Remains our nearest opening and our first multi-location expansion
Phuket Rawai Target: Q1 2027
- Project is just getting underway, with an expected opening in Q1 2027
- Budget is on track — no variance to report on this project
- Partner continues to contribute 75% of capex, the most favorable structure in our pipeline
Cloud 11 is closest to opening with courts going in now. Thonglor is over budget but proceeding as our flagship. Phuket is on budget and on track for Q1 2027.
Rama IV — Performance
July was a challenging month. Two factors drove it, and they compounded each other rather than acting independently.
- New clubs opening. Several new venues came online in Bangkok during the period, fragmenting demand across the city.
- Rainy season — but different from last year. Rain has always affected our outdoor court. What changed is that last year we had no meaningful competitors, so weather displaced play in time rather than losing it: players rebooked with us. This year, a player rained off an outdoor court has somewhere else to go. The rain did not get worse — the cost of it did.
We have taken action, and it is working. We pulled two levers — the academy and our managed communities — both of which create committed, scheduled play that is far less sensitive to weather and to a competitor opening down the road. As of this week we are back above 70% occupancy.
Highlight
Occupancy recovered above 70% this week, following academy and community programming actions
Highlight
Academy revenue crossed 600K this month — the highest in our history, ahead of any previous month on record
Highlight
First proper academy structure launched — fixed groups and monthly subscriptions, replacing ad-hoc lesson booking. Customer response has been genuinely strong
Working on
Reducing weather and competitive exposure on court revenue by continuing to shift the mix toward committed, scheduled play
The strategic read: the academy subscription model is the most important commercial development of the period. It converts variable, weather-exposed, price-comparable court hours into recurring monthly revenue with a fixed schedule and a social commitment attached. That is exactly the structural defence a market with 20-plus venues requires, and it is showing up in the numbers within the first month.
Fundraising
In our last update we said we were targeting to close the funding gap within 60 days. We have not closed it in that window, and we would rather say so plainly than restate a new date without acknowledging the last one. The Thonglor cost position described above has also increased the amount we are raising.
The round is active with three hot leads. The most relevant of these is Sansiri, where conversations are well advanced and where we see strong strategic alignment beyond the capital itself. We expect to close in the next four to six weeks.
Cloud 11 opening — with courts going in now — gives incoming capital a live proof point on our ability to execute a second location, and on the economics of the more asset-light JV structure we intend to repeat.
If you have introductions to investors suited to this stage, we would welcome them.
Asks
- Investors — We are actively closing this round. Introductions to investors suited to this stage are the single most useful thing right now
- Corporate and community bookings — Managed communities are proving to be one of our strongest occupancy levers. If you can connect us with companies or groups looking for regular scheduled play, please do
- F&B and wellness brands — Thonglor and Cloud 11 are both coming online and we are sourcing brand partners for both
- New locations — Spaces in Bangkok or key Thai resort markets suitable for 3–6 courts, or developers with mixed-use projects where padel could fit
Investor Perks
A reminder that investor perks remain active across all our locations: 30-day priority booking, 20% off court rentals (excluding packages), 1 complimentary coaching session per quarter, and 10% off F&B and pro-shop. Reach out directly with any questions on how to access these.
Thank you for your continued support. This has been a demanding period — delays and cost pressure on the flagship, and a genuinely competitive month at Rama IV. We are being direct about both. The academy result and the occupancy recovery are early evidence that the levers we are pulling are the right ones, and Cloud 11 opening will be the next milestone we share with you.
Pad Thai Padel Management