CHIANG MAI — The shareholders of “Dhara Dhevi” hotel doubt the cause of the fire. They claim that a joint venture company illegally tapped into the power supply, causing a dangerous tangle of cables that violated safety standards, despite prior warnings and a municipal order to suspend the building’s use.
The major fire at the famous Dhara Dhevi Hotel in Mueang district, Chiang Mai, on the night of April 23, 2025, caused massive damage and significantly tarnished the hotel’s image.
Ms. Yaowalak Ritsomjit, a representative of the shareholders of Inter Far East Energy Corporation Public Company Limited (IFEC), the operator of Dhara Dhevi, presented evidence to the media and raised suspicions that the fire may have been caused by the joint venture company’s risky and non-compliant reopening of part of the hotel.
Two Co-Owners of Dhara Dhevi
Ms. Yaowalak also explained the ownership of Dhara Dhevi: On December 27, 2023, IFEC, through its subsidiary Inter Far East Thermal Power Co., Ltd (I THERMAL), successfully bid for the Dhara Dhevi Hotel in a public auction. The auction included assets of the two co-owners of the hotel, Dhara Dhevi Hotel Co., Ltd. and APK Development Co., Ltd.
I THERMAL secured the hotel at a price of 3.65 billion baht ($108 million). However, when payment was due to the Enforcement Department, it could only pay 2.3714 billion baht ($70 million) for the assets of Dhara Dhevi Hotel Co., Ltd. but not the 1.22322 billion baht ($36 million) for the assets of APK Development Co., Ltd.
As a result, the Ministry re-auctioned APK’s assets, which were acquired by another party.
Problematic Utility Systems
After the acquisition, Tawich Techanavakul, chairman of IFEC and I THERMAL, formed a joint venture with Siam Estate Dhara Dhevi Co, Ltd. under the leadership of Suphan Setthaphanich, former managing director of Solaris Asset Management. The part acquired by I THERMAL had serious problems: no running water, no sewage system, and only about 20% of the hotel had electricity.
“This was the main reason for the problems in managing the utilities at Dhara Dhevi, which eventually led to the devastating fire that destroyed the entire Dheva Spa building,” she said.
Crucially, there was no fire-fighting or emergency water system, as these utilities were located on the side of the property that was acquired by another party (APK). As a result, Siam Estate Dhara Dhevi Co, Ltd. had difficulty reopening the hotel properly.
Due to these shortcomings, the Tha Sala Municipality ordered the closure of five buildings because they had been altered without permission and lacked the legally required utility systems.
After the takeover by I THERMAL and the establishment of the joint venture, the hotel was neglected and fell into disrepair, increasing the risk of fire, despite repeated warnings from shareholders to Siam Estate Dhara Dhevi Co, Ltd.
Allegations of Unsafe Conditions
The shareholders’ representative argued that the fire was probably due to improper use of the electrical systems: makeshift, substandard wiring without proper voltage control, posing a serious risk of short circuits and fires.
As the hotel did not have its own water system, Siam Estate Dhara Dhevi Co, Ltd. also had hoses laid across the road to fetch water from the Wat Buak Krok Luang temple, an unhygienic and inadequate solution.
The hotel’s underground water system was unusable, so they were forced to install unsightly above-ground pipes, further damaging the hotel’s image.
Although the Dheva Spa area was surrounded by high-pressure water systems, these failed during the fire because the necessary pumps were located in the area owned by APK Development Co, Ltd.
The lack of a functioning fire suppression system was a key reason the Dheva Spa was completely destroyed. Firefighters had to wait for water refills, allowing the fire to spread uncontrollably.
Conflicting Claims About the Fire
The Siam Estate Dhara Dhevi Co, Ltd. also held the “Kad Dara,” a community market on the grounds of the hotel on the last weekend of every month, which required renovations to the hotel structures including the now destroyed spa.
However, this was done without adequate fire protection and sewage systems, putting visitors and the surrounding Buak Krok Luang community at risk. The shareholders are calling on the authorities to investigate further.
After the fire, it was claimed that the Dheva Spa had been cut off from the power supply for years. However, visitors had recorded videos showing that the power was still on, disproving these claims.
In the meantime, the joint venture company has reiterated that electricity was definitely not used in the building where the fire broke out. They also wondered why some parties are trying to tarnish the reputation of Siam Estate Dhara Dhevi.
“The fact is that this building has been unused for 6–7 years, and I stand by the statement that the building was unused and had no electricity. I also doubt that simple strings of lights could really cause such a large fire. However, I will not comment on the actual cause and leave it to the forensic authorities to determine. Personally, however, I believe that the incident was abnormal and unnatural,” said a representative of the joint venture.
Shareholders Plan Press Conference
In response to the other side’s claims that the fire was caused by faulty temporary wiring, such as small, non-compliant power cables without proper voltage control, the joint venture representative reiterated, “This is not yet a standard operation for a hotel. The building had not yet reopened. We have only installed a few temporary lights for lighting, just a few small strings of lights on the front and sides of the building.”
The IFEC shareholder group is planning a major press conference in Chiang Mai in early May 2025 to clarify the outstanding issues. They plan to invite representatives of the joint venture company for questioning.
“In addition, the shareholder group plans to jointly request a meeting with the governor of Chiang Mai to inquire about official action to prevent the Dhara Dhevi Hotel from causing further problems that could affect the community and the environment,” Ms. Yaowalak said.
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