CP Land Plc is the property sector of Charoen Pokphand Group. The company is planning to build nine new hotels between 2017 and 2018 which will be located in provinces. These hotels have already received a funding of 22.2 billion baht while there are also five condo projects set to launch next year worth 2 billion baht in total.
According to the executive vice-president assigned for investment and hotel management, Naravadee Waravanitcha, the company is going through an expansion with its hotel business because of the high demand from consumers.
One of the hotels they will be launching will begin its operation by 2017. The hotel is called Fortune Rajpruek Hotel which has 159 rooms. This project is located in Nakhon Ratchasima in the Muang district.
The hotel was acquired by the company through a bidding process that was held by Sukhumvit Asses Management Co last year. This asset is considered as nonperforming and the company bought it for 400 million baht which includes the costs for renovating the building.
According to Naravadee, in the coming three years, the company will be investing in 10 additional hotels every year. Every hotel will have an allotted budget of 120 million baht. The main focus of these expansions will be offering customers with budget hotels in order to meet the current demand.
For the segment, there are two brands of budget hotel planned which will include the Fortune D and Fortune D Plus. In these hotels the room rates will only be set at 790 and 1,200 baht for one night stay. Aside from the Fortune Rajpruek Hotel which will be launching this year, there are other hotels set to open in the same year including those in Muang district and Khao Yai district. Each hotel will have 79 available rooms for rent.
In 2018, there will be five new hotels from the company with 717 rooms in them and the largest will feature 322 rooms which will be located in Nakhon Si Thammarat. The remaining hotels will have 79 rooms to be located in Buriram, Rayong and two other provinces in Thailand. Budget hotels are now in demand thus tourists will be able to book a room in a hotel near Lumpini Park.