BT13 BN set for hotels, foods

The group operates 25 hotels and resorts under management contracts and its own brand, Centara.

It aims to have at least 77 hotels by 2014 under management and its own investment. The number of rooms will increase from 5,441 to about 10,000 over the period.

The group currently claims to be Thailand's largest hotel operator in terms of room numbers.

Meanwhile, Central Group will launch four new food brands: Chabuton, a premium Japanese ramen; RYU brand shabu shabu; a premium American ice cream to replace Baskin Robbins; and So ..., an ice cream developed in-house.

Suthikiati Chirathivat, chairman of the executive committee, said the group had been postponing hotel investment for nearly 10 years due to many negative factors. However, it is now resuming investment and will expand both at home and overseas.

The group plans to operate 13 additional hotels next year, including properties in Hua Hin, Khon Kaen and the Centara Grand Beach Resort and Spa Sokhna in Egypt.

"Of the targeted 77 hotels in the next five years, more than 50 per cent will be under management. The group will invest in a new hotel every two years. Each is expected to use Bt2 billion," said Suthikiati.

He added that the group planned to launch new hotel categories, including boutique and budget hotels, within two years.

It will also spend Bt700 million-Bt800 million to renovate one of its flagship hotels, the Sofitel Centara Grand and Bangkok Convention Centre.

Gerd Steeb, president of Centara Hotels and Resorts, said the global economy had not yet recovered, but there seemed to be some positive signs of things getting back to normal.

"The group is optimistic and hopes things will soon return to normal," he said.

Although the overall hotel sector has an average occupancy rate of 49 per cent, Centara has achieved 61 per cent and expects this to rise to 66 per cent next year, he added.

Suthikiati said the group expected revenue to reach Bt18 billion after the five-year investment period, with income evenly split between its hotel and food businesses.