The Erawan Group, the listed hotel company, plans to invest 10 billion baht to develop and take over hotels in the mid-priced and budget segments after seeing bright market prospects and the growth of low-cost airlines.
The company projects revenue contribution from mid-priced and budget hotels will rise to more than half of total revenue in the next five years, said president and CEO Kasama Punyagupta."We will focus on selective locations in established destinations where we already have customers and understand the markets," he said.
The company is experienced in the economy segment, with seven Ibis hotels already opened in key tourist spots.
Ibis's performance was strong in the first seven months of this year even as the tourism sector suffered from local political problems. Economy of scale is an important factor to keep operating and investment costs per room low
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