Centara plans budget hotels
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Thailand-based Centara Hotels and Resorts is planning to diversify its business into the budget hotel sector in a bid to adapt to changing market conditions.
The Nation reported that the move will mark the group’s first departure from four- and five-star properties in its 30-year history. Centara is reportedly is setting up a joint venture with an unnamed foreign hotel management firm to run budget properties.
The group plans to operate 20 budget hotels throughout the Thailand. Centara will develop its own first property, expected to open next year, but most of the properties will be run under management contracts, the report added.
“The economic crisis is affording us new opportunities,” Centara’s Executive Board Chairman, Suthikiat Chirathivat, as quoted saying, adding that the group is also considering boutique hotels.
“Many travellers want to stay cheaper hotels, so we need to offer a variety of choices,” he added.
Suthikiat said Centara planned to operate 40 new hotels consisting of 5,000 rooms across various market segments over the next five years, both domestically and abroad. The group recently signed an agreement to operate properties in the Maldives and Vietnam, and is reportedly in discussions to bring the Centara brand to India and Bangladesh.
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