CHIANG KHONG, CHIANG RAI: CP Land Plc, the property arm of agribusiness conglomerate Charoen Pokphand Group, will continue with non-residential property development as it aims to balance recurring income from rental business and revenue from housing sales.
Naravadee Waravanitcha, executive vice-president for investment and hotel management, said CP Land would maintain development of rental properties such as office towers and hotels to boost revenue from rental business to 50% of the total, up from 25% now.
"We will continue rental property development," she said. "For hotels, opportunity is larger in the provinces than in Bangkok, where hotel supply is excessive. But if there is a chance to take over an existing hotel in Bangkok, we will."
CP Land expects to have 700-800 million baht in revenue from rental business, up from 600-700 million baht last year that accounted for 25% of the total of 3 billion baht. Remaining revenue was from residential business, mainly condo projects.
In the first half, it added 122-room Fortune River View Hotel Nakhon Phanom, 118-room Fortune View Kong Hotel Nakhon Phanom and 147-room Fortune River View Hotel Chiang Khong into its hotel portfolio.
It plans to open Fortune D Mae Sot in the third quarter, Fortune D Plus Khao Yai, Fortune D Buriram and Fortune D Loey in 2017. The new brand is in the budget hotel segment with only 79 rooms or smaller.
CP Land wants to develop hotels in key tourist destinations including Rayong, Phuket and some southern provinces.
In Ban Khai district of Rayong, it will develop CP Industrial Estate on more than 3,000 rai with an investment of 7 billion baht.
Last month it opened CP Tower Nakhon Ratchasima, a six-storey office tower with a lettable area of 7,300 square metres. It plans to open other office buildings in Nakhon Si Thammarat, Surat Thani and Udon Thani in the second half.