3 days ago
PCL says business owners keen on hospitality investment
More real estate business and other business owners are diversifying their portfolio to hospitality investment, hoping to generate recurring income from the growing tourism industry, says PCL Hospitality, a hospitality consultancy and management company.
PCL is aiming for 100% revenue growth from hotel consultancy and management this year. It also projected that Thailand has the opportunity of securing 88 million foreign arrivals by 2033.
"Over the past decades, Thai tourism always picked up fast after any crisis," said chief executive Patom Siriwattaprayoon.
He said the number of foreign arrivals grew by 150% between 2010 and 2019, and the trend should continue between 2024 and 2033, eventually reaching 88.8 million arrivals.
Driving factors include the expansion of airports nationwide over the coming years, which helps cater to growing inbound demand from countries with large populations, such as China, India and Indonesia.
According to UN Tourism, Asia-Pacific accounted for a 25% market share of global tourism in 2019, with only Europe achieving a larger share.
He said Thailand only needs 2.32% of the population in Asia-Pacific to visit in order to reach the 88.8-million milestone.
PCL provides consultancy and management to international hotel chains as a third-party managing company under franchise contracts. Its clients include Hilton, Marriott, Accor, IHG, along with other white label hotels.
There is room for franchise management of global chains to grow, particularly in the medium range of 100 rooms, he said.
Mr Patom said many owners wish to operate hotels in order to generate more income in addition to their core business.
PCL has three major client targets -- hotel owners who want to revamp their existing hotels, real estate developers, and owners of other business types, who own land plots and want to start a hospitality arm.
Many want to shift from their core business, such as residential projects or factories, during a sluggish economy, he said.
Since 2015, PCL has provided feasibility studies and brand selection to more than 10 hotels, and project management and technical services to over 30 hotels.
The company is currently managing over 1,300 room keys and is eager to increase the number to 5,000 rooms by 2030, while it seeks to grow its annual revenue in consulting and management by 100%.
Mr Patom said PCL also plans to develop and launch its own hotel brand in the premium economy segment, targeting second-tier cities in Thailand, with room prices averaging 1,500 baht.
He said this sector has fewer competitors, while hotel locations could serve not only tourism purposes, but also business travellers, meetings, and weddings.
An 80-120-room property should commence this year, and it plans to expand this model to other owners in the next stage.
When it comes to new contracts, the company recently signed contracts to manage Nivata Koh Samui, Tapestry Collection by Hilton in Samui, Best Western Matter Tiwanon, and Hampton by Hilton Phuket Town.
