CPN to invest B10bn in 37 hotel projects
published : 10 Jun 2022 at 04:19
newspaper section: Business
writer: Narumon Kasemsuk
Central Pattana Plc (CPN) is rolling out 37 hotel projects in 27 provinces worth a combined 10 billion baht to be managed by Centara Hotels and Resorts, aiming to create 3,900 jobs nationwide.
Wallaya Chirathivat, president and chief executive of CPN, said the five-year investment plan for its hotel business ending in 2026 will strengthen its retail-led mixed-use developments as hotels will be a key part of every CPN project from now on.
The 37 hotels will offer 4,000 rooms overall and should be able to help create at least 3,900 jobs, particularly in second-tier cities, as the company has a plan to extend its footprint beyond major urban areas, she said.
CPN already has two hotels in its portfolio: Hilton Pattaya and Centara Udon Thani.
Ms Wallaya said hotel revenue should contribute at least 10% of CPN's total income within five years.
The first hotel scheduled to open this year is the 218-room Centara Korat in September, which will be the first fully integrated mixed-use development in the Northeast, she said.
Phoom Chirathivat, head of hotel properties at CPN, said the company remains confident in domestic tourism after 30 million domestic trips were recorded in April. A total of 38 million domestic trips were recorded in April prior to the pandemic.
The new hotels should also be able to capitalise on the prime locations of CPN projects, which feature components including offices, retail spaces and real estate within the same area, said Mr Phoom.
The hotels should be able to attract a huge amount of traffic as these projects are easily accessible via transport systems, he said.
Mr Phoom said all 37 new hotels will be managed by Centara, comprising 25 properties in the premium budget segment known as Go! Hotel, eight Centara One hotels, which is a midscale lifestlye brand created for CPN, and four under the upscale Centara brand.
At present, there are 10 hotels in the pipeline located in Korat, Ubon Ratchathani, Ayutthaya, Rayong, Si Racha, Chon Buri and Chiang Rai. Those projects will be ready within two years, he said.
Thirayuth Chirathivat, chief executive of Centara, said the company's revenue this year is projected to reach 70-73% of the level recorded in 2019, mainly attributed to overseas properties that experienced a faster recovery than in Thailand.
In addition to its partnership with CPN, Centara is expected to sign 20 more new management contracts this year, adding to its portfolio that includes 90 hotels either in operation or in the pipeline, he said.