Centara seeks to double revenue
CENTARA Hotels & Resorts aims to double its annual revenue and the number of hotels and resorts in its portfolio by 2022 under an ambitious investment plan announced yesterday.
The hospitality operator posted Bt9.76 billion in annual revenue last year.
The group has set aside an investment budget of Bt20.8 billion to expand the number of its hotel properties over the three years, with Bt5.3 billion allocated to this task this year.
Thirayuth Chirathivat, chief executive of Centara Hotels & Resorts, said the group operates 70 hotels and resorts with 13,610 rooms in 12 countries, including Thailand, Laos, Cambodia, Vietnam, Turkey, Indonesia, Maldives, Sri Lanka, China, Qatar and the United Arab Emirates.
About 45 of these hotels and resorts are in Thailand. Some 39 hotels and resorts are in operation, and a further 31 are being developed. Twenty-two hotels and resorts are owned by the group, with the rest under management contracts.
“We (Centara) have set a strategic plan to grow our hotel business continuously in the next three to five years, and target to double our annual revenue by 2022, and to move forward to become an international chain for hotels and resorts,” said Thirayuth. He said that Centara will open three more hotels this year, with two of them to be under management contracts.
“We will open Centara Sonrisa Residence and Suites Sriracha in June, and Centara Ao Nang Beach Resort and Spa Krabi and COSI Pattaya Naklua Beach in September,” he said. “Our estimated investment funds for this year are Bt5.3 billion. The investment budget set for the next three years (from 2019 to 2021) is Bt20.8 billion.”
Thirayuth said that Centara will enter Myanmar in the last quarter this year. Under the expansion, the group will launch its Centara Paradise Inle Lake Resort and Spa, being developed under a partnership with KMA, a subsidiary of the Kaung Myanmar Aung (KMA) Group of Companies.
The joint venture will develop and renovate six hotels in tourism destinations in Myanmar. Centara will look after management and operation of the six hotels.
Thirayuth said that, supported by an expanded collection of innovative brands, Centara “aims to build on an impressive legacy by bringing exceptional new hotels and resorts to exciting new destinations worldwide”. The group has set its growth strategy around three pillars.
The first of these will see expansion through mergers and acquisitions (M&A) and new management deals in destinations with high potential for tourism growth.
“Centara will continue to work closely with business partners, traders and investors to identify the best strategic opportunities for the group,” Thirayuth said.
“The group will also strengthen its footholds in Southeast Asia, the Indian Ocean and the Middle East, while looking out for opportunities in other continents to accommodate the needs of tourists and investment promptness.”
The second pillar is centred on a multi-brand strategy by adopting innovation and “creating varying brands that cater to the different layers of travellers’ needs” and to capture the market of the younger generations.
“We have initiated our latest young, lifestyle COSI brand that incorporates innovation and technology to deliver simple but effective services,” Thirayuth said. “The brand now has established outstanding market positioning among independent travellers. COSI Samui hotel that we launched in 2017 has received excellent feedback from guests. It even won the Agoda Gold Circle Award 2018 for excellent services voted by customer reviews, with great deals and modern design. We plan to open more COSIs in other provinces such as Pattaya, Krabi and Chiang Mai, and a COSI Vientiane, which is being built.” The third pillar involves the enhancement of infrastructure, such as technology and operating systems to support the company’s aggressive expansion plans.
“We need to upgrade our business processes and consumer experience online to cover omni-channel sales. We will go more online to create brand loyalty and maximise our Centara the 1 membership system,” Thirayuth said.
“From my perspective, the challenge for hotel business operators is the ever-changing consumer behaviour,” Thirayuth said.
“We have to keep learning and open up to new ideas and innovate. That’s one of the reasons why we originated the COSI hotel concept. We still see Thailand as a very strong market and it is growing in popularity as a destination.
However, Centara has diversified the portfolio in other high-potential destinations as well in order to add variety and to capture different markets. We are proud to export our unique Thai hospitality to travellers worldwide.”
