Central Plaza Hotel eyes investing in London - The Nation

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BAMRUNG AMNATCHAROENRIT
THE NATION August 23, 2012 1:00 am

The Thai hotel chain is also eyeing Paris. It considers these two capital cities to be the gateways to Europe, and a presence there would provide great opportunities to build recognition of its brand internationally. However, its core market will remain Asia, and especially Asean.

Chief executive officer Thirayuth Chirathivat said it was time to shop for properties in Europe because prices were plunging. However, it will tread carefully with its investment plan because stepping into Europe, a highly competitive market, would be a big move. Therefore, there is no time frame to do so.

"The company wants to make sure everything is ready before pouring investment [into Europe] to gain success there,'' he said, adding that under the plan, the firm would form a joint venture.

Thirayuth, 46, who took over the CEO position in April, is the son of Suthikiati Chirathivat, chairman of the board. He is putting a big effort into strengthening the business in every hotel segment and its role in international markets. It is mainly expanding its business by forming agreements with property owners.

By the end of next year, the firm plans to open an economy hotel chain under the management concept. It is in talks with property owners who run its wider network.

Thirayuth declined to disclose the official name of the new chain, but said it would be one that is easy to remember. The concept will be comfortable two-star hotels. It will compete head-on with Ibis, part of Accor, and Tune Hotels.

The company believes that entering the low-cost market will help strengthen it in all segments. The economy market is growing quickly, and will be driven by an increasing number of travellers after the full opening of the Asean Economic Community.

By 2015, the company plans to be operating 10,000 rooms, preferably under management agreements. Under its expansion plan, which does not include the new economy brand, the firm plans to operate 10 new hotels annually.

Within five years, it plans on hotel operations abroad accounting for 60 per cent of the total, reducing its dependence on the domestic market.

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Source: http://www.nationmultimedia.com/business/Central-Plaza-Hotel-eyes-investing-in-London-30188862.html

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