Central Plaza Hotel has scaled up its capital-expenditure budget for this year to between Bt1.8 billion and Bt1.9 billion from Bt1.2 billion to invest more in the food business.
"We set aside a budget of Bt600 million to renovate hotels and an additional Bt600 million for the food business, which is expected to be concluded next quarter. We expect to increase brands in the food business from the two brands that are in negotiations.
"The new brand will be a franchise," Ronnachit Mahattanapruet, senior vice president for finance and administration at the operator of Centara Hotels Resorts, said yesterday.
The company spent Bt605 million in the first quarter on the hotel business, of which Bt120 million was used to acquire the remaining shares in Karon Phuket Hotel and Bt485 million to open its second hotel in Maldives. Revenue this year will be 55 per cent from the food business and 45 per cent from the hotel business.
GROWTH MOMENTUM
Revenue will continue its growth momentum from the first quarter as the occupancy rate last month was 80 per cent, up from 65 per cent in April last year, he said. Chinese travellers are increasing, which is benefiting both the hotel and food businesses.
"We estimate profit this year will be higher than last year and should set a new high for the company in line with the increase in revenue. Central Plaza targets revenue of Bt17 billion this year against Bt14 billion last year.
The reduction in the corporate income-tax rate is also supporting the bottom line," he said.
The bright prospects for travel and the boost to the purchasing power of provincial customers by the increase in the minimum wage are also helping to increase revenue this year.
The company hopes to manage 12 more hotels this year, which would bring the total number of its own hotels and hotels under management to 47 from 34 last year.
It operates many resorts in major tourist destinations in the South such as Samui, Phuket, Krabi and Hat Yai, but the blackout in the 14 provinces in the region on Tuesday night did not disrupt their operation since it has a power-supply backup.
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Article source: http://www.thethailandlinks.com/2013/05/23/central-plaza-ups-capex-budget-to-bt1-9-bn/
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