Dusit Thani Hotels in Crisis as Family Feud Triggers Corporate Chaos Amidst Dusit D2 Chiang Mai Hotel Closure Earlier This Year

Bangkok Hotel News: Family War Shakes Foundations of Thai Hospitality Giant

In a dramatic and highly publicised escalation of internal family tensions, the legacy of one of Thailand’s most revered hospitality empires is now under threat. The children of the late Thanphuying Chanut Piyaoui, founder of the Dusit Thani hotel group, have locked horns in a bitter power struggle that could derail the company’s operations, freeze its financial reporting, and damage its long-standing reputation both domestically and internationally.

This Bangkok Hotel News report reveals that the infighting reached its boiling point during Dusit Thani Public Company Limited’s 32nd Annual General Meeting on April 25, 2025. At the meeting, the company’s major shareholder, Chanut and Sons Co., Ltd.—jointly owned by the founder’s three children—refused to approve the 2024 audited financial statements, even though they had already been reviewed and reported to the Thai Stock Exchange. This rare rejection of certified financials immediately stalled the appointment of new auditors for the 2025 fiscal year and can trigger a countdown to a forced trading suspension of Dusit Thani shares, due to the company’s inability to meet the May 15 deadline for Q1 results.

However, a new update claimed that company at the last minute, successfully finalized and submitted its Q1 2025 financial statements to the Stock Exchange of Thailand (SET) on May 15, 2025. These financials were prepared in line with established accounting standards, endorsed by the audit committee, and reviewed by independent external auditors. To safeguard the company and its shareholders from any negative impact, the board took swift action to appoint a dedicated auditor for the first quarter.

Accordingly, to this prompt submission helped the company avoid having its DUSIT shares flagged with an “SP” (suspension) designation by the SET. However, the SET did issue a disclaimer, advising investors to monitor the outcome of the upcoming shareholder meeting on May 28, 2025, where the formal appointment of the annual auditor will be addressed.

Power Play Among the Piyaoui Heirs

At the heart of the corporate crisis is a fractured family unit. Eldest son Chanin Donavanik, who has long served as the driving force behind Dusit Thani’s global expansion and is currently the group’s chief executive, finds himself in direct conflict with his two younger sisters, Sunong Salirathavibhaga and Sinee Thienprasiddhi.

Since the passing of Khunying Chanut in 2020, the once-unified family front has given way to an increasingly adversarial internal battle. All three siblings hold near-equal stakes in Chanut and Sons Co., Ltd., which itself commands an influential 49.74% shareholding in the publicly traded Dusit Thani PLC. However, a critical shift occurred in February 2025 when Chanin was unceremoniously removed from the board of Chanut and Sons. The current board is now composed exclusively of Sinee and Sunong’s allies, effectively sidelining Chanin’s influence in key decision-making.

Financial Strains and Strategic Clashes

The rift, while personal, is underscored by serious financial and strategic disagreements. Dusit Thani has endured multiple hardships in recent years—most notably the long shadow cast by the COVID-19 pandemic, as well as the capital-heavy investments in large-scale developments like Dusit Central Park and the rebuilding of the flagship Dusit Thani Bangkok.

These ambitious projects have placed immense pressure on company finances. Chanut and Sons Co., Ltd. reported a significant drop in profits from 81.7 million baht in 2020 to just 2.37 million baht in 2021. Although profits recovered modestly to 10.77 million baht by 2023, they remain far below pre-pandemic levels. Insiders suggest that Chanin’s assertive moves to expand Dusit Thani’s portfolio, and his installation of his own children into senior roles, have irked his sisters—both of whom now appear unified in opposing his continued leadership.

Governance Crisis and Market Fallout

Dusit Thani PLC has clarified in statements to regulators that the dispute is not related to the accuracy or integrity of the financial statements. Rather, it stems from shareholder disagreement. Nonetheless, the consequences for the company’s public image and investor confidence are significant.

To mitigate damage, the company has rescheduled another shareholders’ meeting for May 28, 2025. This meeting aims to bypass the disputed agenda item and secure approval for the appointment of new auditors—an essential step toward lifting the trading suspension. However, analysts warn that unless a broader reconciliation is achieved, this could be just the beginning of a protracted governance crisis.

Closures Add Fuel to the Fire

While corporate battles rage at the top, the public is also seeing visible signs of decline. In Chiang Mai, the beloved Dusit D2 Hotel closed its doors after 18 years of operations, shocking both locals and returning tourists. A statement on the hotel’s Facebook page read, “After 18 vibrant years, dusitD2 Chiang Mai has closed its doors. We’re filled with gratitude for the memories and the connections we’ve made.”

The Dusit D2, previously the Chiang Inn Hotel, had been a staple of the city’s hospitality landscape since the 1970s and was notable for its distinctive design by National Artist Chulathat Kitibutr. Acquired by Dusit Thani in 2005, its closure—despite the current tourism surge—highlights ongoing struggles in Thailand’s hotel sector and raises questions about management focus and financial priorities. Earlier this year, the iconic Lotus Pang Suan Kaew Hotel in Chiang Mai also shut down after 33 years, reflecting the broader volatility in the industry.

What Lies Ahead for the Dusit Thani Brand

The company’s second-largest shareholder, Central Pattana PLC (with a 17.09% stake), and Bangkok Bank PLC (holding 4.06%) are believed to be closely monitoring the situation. There is growing speculation that the sisters’ resistance may be part of a longer-term plan to prompt a change in leadership, one that could mark the end of Chanin Donavanik’s era and begin a new chapter for the group.

Behind the boardroom drama lies the legacy of a woman who revolutionized Thai hospitality. The irony is striking—Thanphuying Chanut, who built her empire on the philosophy of treating guests like family, now leaves behind a family conflict that could unravel the very empire she created.

The next shareholders’ meeting may determine whether the Dusit Thani brand will find a path forward or continue down a road of internal chaos. Industry watchers, investors, and hotel professionals alike will be watching closely as one of Thailand’s most storied hotel chains navigates its most turbulent chapter yet.

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