Centara aims to run 65 hotels

       Centara Hotels & Resorts has set a target to manage at least 65 hotels in both local and international markets over the next five years.
       The hotel management service will not only help expand its network and promote the Centara brand quickly. It will also helps other hoteliers who have been adversely affected by the global economic crisis and local political instability,according to Suthikiati Chirathivat, chairman of the executive board of the listed Central Plaza Hotel Plc (Centel).
       "I dream of being a leader in Thailand's hotel business the same way my father and brothers do in the retail and department-store business. I see demand in this business. More than 20-30 hoteliers have asked us to manage their hotels because they have confidence in our performance and 30 years of experience,"he said.
       The company expects the hotel management business to generate revenue of at least 60 million baht this year and 100 million baht next year. At present,Centara have secured eight management agreements and hopes to run at least six hotels in 2010. Currently, it owns nine hotels and another four through joint ventures.
       Among the key international markets for its hotel management business are the Middle East, India, China, Asia Pacific,and South East Asia.
       Mr Suthikiati stressed that the core value of the hotel business is practicality,safety standards, ease of maintenance,and environmental friendliness.
       Ronnachit Mahatanapruet, Centel's senior vice-president for finance and administration, said the company expects the proportion of its hotel management business and hotel business in its profit will change to 40:60 over the next five years from 20:80 now.
       Next year, the company will introduce a new budget hotel brand which will become another flagship brand to help it achieve the target.
       Mr Ronnachit said the company has cash flow of 1.5 billion to 2 billion baht.Besides, it plans to open new theme hotels on some plots in its landbank.
       "We hope to open the theme hotels in many locations such as Hua Hin and Phuket. However, the projects will be launched after the first theme project,the Centara Grand Mirage Beach Resort Pattaya, becomes successful," said Mr Suthikiati.
       Centel invested 4.4 billion baht to develop the 555-room Centara Grand Mirage Beach Resort Pattaya, aiming to target the Mice market. It expected to break even in 2011.
       "We are expecting strong sales from our international markets next year. Then there is the Mice market. A lot is said about the importance of this segment to the Thai economy - demand for this kind of meeting experience is strong.Indeed, in October almost all of our available meeting space over the weekends is already full," said Mr Suthikiati.
       Also in the pipeline is another theme hotel project, the Centara Grand Beach Resort Phuket, a 5-star Sino-Portuguesestyle resort to be located on Karon Beach.