CP Land in B4bn hotel campaign
CP Land Plc, the property arm of Charoen Pokphand Group, will spend 4 billion baht to double the number of its hotels to 25 in the three years, as well as 2 billion baht to develop infrastructure and utilities at an industrial estate in Rayong.
President and chief executive Sunthorn Arunanondchai said tourism and industry are two priority sectors for investment because they will be driven by key government policies.
"Though the economy has slowed down, people still travel," he said. "Our hotel portfolio will benefit from the government's campaign that promotes domestic consumption through tourism spending in minor provinces."
CP Land operates 11 hotels in nine provinces nationwide under Fortune Hotel with a total of 1,656 rooms.
Eight of the hotels are in minor provinces, including two in Nakhon Phanom and one each in Chiang Rai, Tak, Loei, Nakhon Si Thammarat, Buri Ram and Phitsanulok. The other three are in Bangkok, Khao Yai and Muang district of Nakhon Ratchasima.
Grand Mercure Fortune in Bangkok with 400 rooms on Ratchadaphisek Road in the Rama IX area, operated for 27 years, enjoys the highest income at 500 million baht a year. It also has the highest occupancy at more than 90%, while those in the provinces average a 50% occupancy rate.
By 2022, CP Land aims to increase the amount of accommodation to more than 4,000 rooms in 25 destinations in attractive areas like Khon Kaen, Udon Thani and Songkhla's Hat Yai, due to strong demand.
Mr Sunthorn said the company will start construction of infrastructure and utilities at CPGC industrial estate in Ban Khai and Nikhom Pattana districts in Rayong after spending a total of 4 billion baht in the first half to acquire land plots totalling 3,068 rai.
The project is developed by CG Corporation, a joint venture of CP Land and Guangxi Construction Engineering Group, one of the largest construction firms in China, holding 50% and 48%, respectively.
"Industrial estate is a robust sector because the government is igniting the Eastern Economic Corridor initiative," Mr Sunthorn said.