SET-listed Central Plaza Hotel Plc (Centel) plans to invest 35 billion baht in hotel and food business over the next five years, aiming to double revenue to 40 billion baht by 2022.
For hotels, the company has listed 20 new projects in the pipeline under both its own investment and through management deals.
For food, Centel will focus on expansion beyond shopping malls, including online and delivery services.
The company attributes the aggressive expansion plan to a continued tourism boom that has lured a huge number of foreign visitors.
Ronnachit Mahattanapreut, Centel's senior vice-president for finance and administration, said the expansion in hotel and food business will increase total revenue from this year's target of 20 billion baht to 40 billion by 2020.
In 2018 alone, some 2.4 billion baht in investment will be poured into hotels and food at 1.2 billion each, Mr Ronnachit told investors at Monday's Opportunity Day session held by the Stock Exchange of Thailand.
Hotel business is expected to generate revenue of 9 billion baht this year before doubling to 18 billion baht by 2022, while food business should generate revenue of 11 billion baht this year and 22 billion in 2022.
According to Mr Ronnachit, Centel will open its own hotels in Thailand, Dubai and the Maldives with more than 900 rooms by 2022.
By that same year, the company will manage more than 4,650 rooms in Thailand, Bali, Cambodia, China, Cuba, Qatar, Laos and the Maldives.
Centel laid out plans for its own investments last year, including Cosi Samui Chaweng Beach with 151 rooms and Centra by Centara Government Complex Hotel and Convention Centre Chaeng Watthana with 204 rooms.
During 2019-22, Centel will open more Cosi branches in Pattaya and increase the Cosi total to 40. About 10 will be through the company's own investment.
This year, Centel will renovate Centara Grand at CentralWorld in the fourth quarter, with the work expected to conclude within 18-24 months. Plans also call for renovating rooms and restaurants at Centra by Centara Government Complex Hotel and Convention Centre by the end of this year.
Refurbishment of two flagship hotels, Centara Grand Beach Resort Samui and Centara Grand in Hua Hin, is expected to use millions of baht.
"The two flagship properties will be operated under new brands after renovation," Mr Ronnachit said.
For food business, the company will continue to open more stores and focus on existing brands like KFC, Auntie Anne's and Pepper Lunch.
Under the five-year plan, Centel aims to enter non-mall markets such as hospitals, office buildings, train stations and stand-alone stores. It will also develop a food delivery centre to enhance online and delivery services.
"We are optimistic about food business this year, especially in the last quarter," Mr Ronnachit said. "Generally, food business will boom months ahead of an election."
For the first quarter this year, Centel posted the highest net profit in its history by raising the bottom line 12.8% year-on-year to 883 million baht.
The hotel business achieved a net operating profit of 735 million baht in the first quarter, an increase of 9.5% year-on-year. Net operating profit for the hotel business rose 15.6% in Q1.
The results were driven by growth in Mice (meetings, incentives, conferences, exhibitions) activity.
The food business posted a net operating profit of 147.8 million baht in the first quarter, up 32.8% year-on-year, driven by the addition of 79 quick-service restaurant outlets.
CENTEL shares closed Tuesday on the SET at 46.25 baht, up 50 satang, in trade worth 91.8 million baht.
Ronnachit: New brands for some properties