Centre Point Group, a hospitality subsidiary of SET-listed developer Quality Houses, plans to upgrade its four hotels in Bangkok to the premium segment within three years.
Mallika Thasananipan, senior vice-president of Q.H. International, the operator of Centre Point hotels, said despite a sluggish economy, the company's hospitality business should continue to grow thanks to robust tourism.
Mrs Mallika said more independent tourists with high purchasing power are visiting Thailand, while business travellers are growing in parallel with foreign direct investment.
The group owns and operates five hotels in Bangkok and Pattaya under three brands; four-star Centre Point hotel; Centre Point Prime, focusing on prime tourism destinations, and; Centre Point Plus, which is equivalent to 4.5 stars.
Centre Point already invested 550 million baht to rebrand two hotels -- Centre Point Plus Silom and Centre Point Plus Pratunam -- which were upgraded from Centre Point hotels. Both hotels are expected to generate 700 million baht in revenue this year.
Post-renovation, their average daily rates should increase by 15-20%, with the average daily rate (ADR) at 4,000-5,000 baht.
Chalong Phiakudpheng, general manager of Centre Point Plus Silom and Centre Point Plus Pratunam, said both hotels aim for 85% average occupancy for the whole year.
The top source markets for the Silom hotel are guests from South Korea, Japan and Europe, while the Pratunam hotel would mainly attract guests from Southeast Asian markets, such as Singapore, Malaysia and Indonesia.
Mr Chalong said Thai contemporary art and decoration had been added to these upgraded properties. New facilities, such as co-working spaces, were also included, but the number of rooms remains the same with 214 at the Silom hotel and 254 rooms at the Pratunam hotel.
Mrs Mallika said overall the group's hotels already reported 20% year-on-year growth in revenue in January, after opening with a revamped look and higher ADR.
She said the group also plans to upgrade two more Centre Point hotels on Sukhumvit Soi 10 and in Chidlom into Centre Point Plus hotels by 2026 and 2027, respectively. Roughly 480 million baht would be earmarked for the property in Sukhumvit Soi 10, while the group is still finalising the budget for the Chidlom hotel.
Mrs Mallika said in 3-5 years, the company plans to look for new locations to renovate existing buildings into hotels and purchase land to develop a new hotel.
Centre Point has 400,000 to 500,000 members in its loyalty programme, and about 40% of hotel guests are repeat customers.
The company also manages five other hotels and serviced residences, including some under the Centre Point brands.
Last year, Centre Point Group's revenue tallied 1.6 billion baht, up 10-15% year-on-year, said Mrs Mallika.