One Origin strategises long term mixed-use expansion
Hotel brands are a key component
One Origin, a subsidiary of SET-listed developer Origin Property, has a long-term plan to pack well-known hotel brands with commercial spaces, targeting business districts and leading industrial zones.
The company has 11 mixed-use commercial property projects due to be completed by 2023 with a combined investment of 12 billion baht.
Pitipong Trinurak, chief executive of One Origin, said the new properties in Bangkok and factory hubs in the Eastern Economic Corridor will attract foreigners working in Thailand, especially Japanese employees.
All projects have a combined 3,420 rooms and 16,000 square metres of commercial space for office and retail.
The company has agreements with InterContinental Hotels Group (IHG) to manage two hotels with a combined 650 rooms: Staybridge Suite Bangkok Thonglor under a joint venture with Nomura Real Estate Development and Holiday Inn and Suites Sriracha Laemchabang in Chon Buri.
Soft openings of both hotels are scheduled within this month.
To cater to the specific needs of long-stay expats in industrial areas, 50% of each hotel will be equipped with the designs and facilities of serviced apartments.
"Our developments focus on business purpose and depend less on volatile tourism. This strategy can stabilise business and see us survive through any circumstance," he said.
In addition, the company plans to convert apartments into a budget hotel near a mass transit system.
With IHG's two projects, the total number of rooms will be 830 this year.
Some 95% of total revenue comes from hotels and serviced apartment. In 2025, that portion is expected to shrink to 85% as other mixed-use facilities come to the fore, said Mr Pitipong.
Revenue from budget hotels, including two new projects next year, will account for 10%. The other 5% is set for retail and office, he said.
In 2022, the company aims to launch three projects totalling 1,050 rooms, including the InterContinental Bangkok Thonglor.
Two mixed-use projects comprising One 24 in Sukhumvit area, another joint venture with Nomura, will be operated under IHG's Staybridge brand, while One Phayathai will feature two branded hotels -- Holiday Inn Express and Hotel Inigo -- in the same building.
By 2023, three projects with 1,130 rooms will be initiated, including One Chon Buri Sriracha, which is projected to be the first five-star hotel for expats in Sri Racha, said Mr Pitipong.