Centara Hotels: $450 Million Thailand Investment Fuels Tourism Recovery
Centara Hotels & Resorts (CHR), a leading Thai hospitality group, has unveiled an ambitious expansion plan, earmarking a substantial ฿15 billion (approximately US$450 million) investment in its hotel portfolio over the next three years. Chief Executive Thirayuth Chirathivat announced the plan, which coincides with a projected revenue target of ฿15.5 billion for 2025, reflecting the company’s confidence in the recovering tourism sector. This aggressive investment strategy aims to capitalize on the anticipated upswing in both domestic and international travel.
Mr. Chirathivat expressed optimism about the tourism rebound, forecasting a 77% average occupancy rate and revenue per available room between ฿4,500 and ฿4,800 for 2025. This projection follows a successful 2024, where CHR generated ฿12.2 billion in revenue, including earnings from a joint venture in Dubai. The company’s performance mirrors a broader industry recovery trend, with destinations like Koh Samui experiencing a surge in popularity, partly attributed to global exposure from the television series “The White Lotus.”
This multi-billion baht investment, drawn from the ฿19 billion budget of the SET-listed Central Plaza Hotel (Centel), will primarily focus on renovations and flagship projects. Approximately ฿5 billion will be allocated this year alone. Notable projects include a comprehensive revamp of the Centara Grand Beach Resort & Villas Hua Hin. This transformation will reimagine the existing 251-room property into three distinct hotels: a Centara Grand, a property under The Centara Collection brand, and a Centara Life, ultimately increasing capacity to 486 rooms.
Building on the successful launch of the luxury Centara Reserve brand in Samui, CHR plans to rebrand the Centara Grand Beach Resort and Villas Krabi as Centara Reserve Krabi. Further strengthening its Samui presence, the company also intends to develop an adjacent resort featuring primarily villas, capitalizing on the growing demand for high-end accommodation. Internationally, the company is expanding its Centara Mirage Beach Resort in Dubai with an additional 200 rooms.
CHR’s current portfolio encompasses 51 hotels with 11,000 rooms, complemented by a robust pipeline of 39 hotels under development. Nine hotels are slated to open this year, including two company-owned properties in the Maldives and Bali, and seven others under management agreements. This rapid expansion underscores Centara’s commitment to broadening its footprint domestically and internationally.
Beyond expansion, Mr. Chirathivat addressed the issue of illegal daily condo rentals, highlighting the unfair competitive landscape it creates for legally licensed hotels burdened with higher operational costs. He urged the government to enforce existing regulations and prioritize attracting high-spending tourists over simply focusing on arrival numbers. This call reflects a broader industry concern regarding the unregulated accommodation sector and its potential impact on established hospitality businesses.
Chief Financial Officer Gun Srisompong emphasized the strategic allocation of the investment, highlighting the company’s commitment to enhancing existing properties while simultaneously developing new projects. This dual approach represents a balanced strategy aimed at consolidating market share and exploring new growth opportunities.
CHR’s ambitious expansion plan signals a strong belief in the tourism sector’s resilience and a commitment to providing diverse accommodation options to cater to evolving traveler preferences. The significant investment will undoubtedly reshape the hospitality landscape in Thailand and beyond, positioning Centara for continued growth and success.
