C.P. Land Plc, a property arm of Charoen Pokphand Group, expects revenue to grow by 42% to 2.7 billion baht this year, with the hotel business a key driver amid the resumption of tourism.
Keerati Satasook, the company's chief strategy officer, said hotel revenue dropped between 2020-2021 due to the impact of the pandemic.
"We are coming back," he said. "The 42% growth in revenue we predict will be mainly boosted by income from the hotel business, which has resumed after shrinking by 40% during the pandemic."
C.P. Land currently has 13 hotels with 1,877 rooms under the Fortune brand.
The largest, with 463 rooms, is the Grand Fortune Hotel Bangkok on Ratchadapisek Road near MRT Rama 9, and it recorded the highest occupancy.
The other 12 hotels are located in nine provinces nationwide. The hotel with the second-highest occupancy was in Nakhon Si Thammarat, followed by Nakhon Ratchasima, Rayong and Nakhon Phanom.
"We are studying many provinces like Phuket, Krabi and Phangnga to develop new hotels in the next three years," he said. "We plan both luxury hotels targeting big-spending tourists and budget hotels to serve Chinese and Indians."
Besides hotels, the company has had recurring rental income from office towers, comprising four high-rise buildings in Bangkok and nine eight-storey towers in seven provinces.
It also owns a shopping mall -- Fortune Town -- at the same location as Grand Fortune Bangkok.
"When the Covid-19 situation improves, discounted rental rates which we earlier offered to tenants will return to the normal rates. This will be another factor helping our revenue," said Mr Keerati.
For residential development, the company plans to spend 3-4 billion baht per year for the acquisition of new land plots, the development of new projects, and to brush up existing housing and condo projects nationwide to restart sales and marketing activities.
"As the residential market is recovering, we will improve existing residential projects to generate sales and revenue," said Mr Keerati. "We will rebrand some residential brands to match the new generation of consumers."
The company currently has residential inventory for sale worth 3.92 billion baht, as well as land bank plots, of which about two-thirds are ready to develop in three years.
In the second half of this year, the company intends to purchase two land plots in northeastern hub provinces such as Khon Kaen or Nakhon Ratchasima, or activity-driven provinces such as Buri Ram, to develop residential projects.
"We plan hospitality and residential business in the north as it is a tourist destination with trade and economic links to China," he said. "In the south, we are eyeing the development of a large mixed-use project."
An annual investment budget of 3 billion baht has been prepared for 2022-2025 as the company aims to achieve 5 billion baht in revenue in 2025, almost double this year's amount.