SET-listed developer Property Perfect is upbeat about its hotel business, expecting the segment to generate 4.2 billion baht in 2019 and make up 20% of the company's total revenue.
Property Perfect aims for 5.3 billion baht from the hotel business over the next two years.
According to chief executive Chainid Adhyanasakul, the hotel business should record outstanding growth this year, supported by continuous growth in tourism with rising foreign visitor numbers.
Thailand will continue to have opportunities for the tourism industry to grow as the country has high diversity in tourism resources, with an advantageous location in Southeast Asia, Mr Chainid said.
"The company expects to earn 4.2 billion baht from the hotel business this year, an increase of 44% from the previous year," he said. "Of the total, 3 billion baht will be generated from Grande Asset Hotels and Property, up from 1.739 billion in 2018 and the remaining 1.2 billion baht will come from overseas hotels, revenues from which will increases from 1.175 billion in 2018. The revenue from the hotel business will account for 20% of the company's total revenue in 2019, compared with 14.8% in 2018."
By 2021, the company aims to increase revenue from the hotel business to 5.3 billion, driven by foreign tourist growth.
The company's top five guests segments are foreigners. Their countries of origin are China for tourism, Japan for business, the US for conferences, India for weddings and South Korea for business and tourism.
"Over the first half of the year, the company's hotel business recorded a good performance, particularly in Bangkok," Mr Chainid said. "The launching of the rooftop bar at the new Hyatt Regency Bangkok Sukhumvit has resulted in higher occupancy rates and revenue per room. The company has also shifted its strategy to expand customers in the Mice [meetings, incentives, conferencing and exhibitions] sector."
"The company's hotels are suitable to host conferences in terms of locations and facilities, making the ratio of guests staying for business and tourism purpose to stand at 55:45, helping to increases the food and beverage revenues for the hotels. There is also high growth potential for Mice travellers in the future."
The company owns seven hotels with 2,077 rooms in total, operated by Marriott and Hyatt.
In Thailand, PF has five hotels featuring 1,655 rooms: The Westin Grande Sukhumvit, Royal Orchid Sheraton, Hyatt Regency Bangkok Sukhumvit, Sheraton Hua Hin Resort and Spa and Sheraton Hua Hun Pranburi Villas.
The two hotels offering 422 rooms overseas are Sheraton Hokkaido Kiroro Resort and The Kiroro, a Tribute Portfolio Hotel, Hokkaido.