C.P. Land Plc, a property firm owned by the Chearavanont family, plans to invest 30 billion baht to acquire hotels and develop residential projects in 2024-25 with the goal of generating 15.5 billion baht in revenue during this period.
Chief executive Keerati Satasook said 5 billion baht would be allocated to buy existing hotels, while 25 billion is for residential development, including condo and low-rise housing projects.
"After freezing spending during the pandemic, our new investment for the next two years will be substantial," he said.
"We're preparing new projects not just for 2024 and 2025, but also for 2026, as we anticipate an economic rebound by the end of 2025."
The huge investment is supported by the company's strong financial status, a good balance sheet and cash flow.
Its debt-to-equity ratio is 0.16 times, with total assets of 30 billion baht and total debt less than 5 billion baht.
"Excluding residential development, we will generate around 2.2 billion baht in revenue each year, comprising 1 billion baht from 13 hotels nationwide, nearly 1 billion from rent at 13 office towers and 200 million baht from the convention centre," said Mr Keerati.
This year, C.P. Land expects to earn 3 billion baht, up from 1.8 billion last year.
The company plans to earn 5.5 billion baht in 2024 and 10 billion in 2025. The revenue targets for 2023-25 were upgraded from 2.5 billion baht, 4 billion baht and 6 billion baht, respectively.
Next year, C.P. Land plans to launch at least five new residential projects worth around 5 billion baht, he said.
Three projects are high-rise condos in major provinces with units starting from 2 million baht, while two projects are low-rise houses.
"All the new projects will be new brands, while existing brands, excluding Dream Condo, will be discontinued," said Mr Keerati, the former chief strategic officer who was promoted to chief executive six months ago.
One new brand is Luxriva Residences for single detached houses with units priced 12-20 million baht.
The first project is in Nakhon Si Thammarat's Muang district, comprising 115 units, slated to open in the first quarter of 2024.
New projects will shift segments up from 1 million baht a unit to 3-10 million baht for condos, and from 5 million baht to 5-20 million baht for low-rise houses, he said.
Existing brands including Kalpapruek, The Courtyard and S Condo for condo projects, and Tuscany and Baan Khao Yai for single detached houses, will be discontinued.
Some hotel brands will also be discarded as the company plans to have hotel chains manage its hotels, said Mr Keerati.
Its hotel brands include Grand Fortune, Fortune, Fortune D Plus and Fortune D.
"A company should not age as it grows older," he said. "C.P. Land needs a rebrand to be modern, tasteful and efficient. We will not let change hold us back."