Erawan Group is expanding its foothold in the budget hotel market with the launch of three new hotels in Bangkok to attract both domestic and international customers.
The three hotels are Hop Inn Chaengwattana, Hop Inn Rangsit and Mercure Ibis Sukhumvit 24.
To date, Erawan Group owns 36 Hop Inn and nine Ibis hotels, considered the largest network of economy hotels in Thailand.
Petch Krainukul, president of Erawan Group, said this year the company will launch two Hop Inn hotels in Bangkok. The first is Hop Inn Chaengwattana, which has 108 rooms and is located on Chaeng Wattana Soi 23, close to Central Chaengwattana department store and Chaeng Wattana MRT station on the future Pink Line.
The second is Hop Inn Rangsit with 79 rooms located near Future Park Rangsit department store and Major Cineplex Rangsit.
"Both Hop Inn Chaengwattana and Hop Inn Rangsit are scheduled to open in the third quarter of this year," Mr Petch said.
The company is confident Hop Inn Bangkok will receive positive feedback from both domestic and international customers because of the convenient location near department stores and cinemas, he said.
The company also plans to open a Mercure Ibis hotel on Sukhumvit Soi 24, near BTS Phrom Phong. The hotel has 500 rooms and is scheduled to open in the fourth quarter this year.
"According to the five-year strategic direction, we will continue to expand in high growth segments and destinations to provide optimal returns to shareholders and ensure stability in revenue growth," Mr Petch said. "This year, investment value allocated to develop new hotels and renovate existing hotels is 3 billion baht."
Erawan Group reported net profit for the fourth quarter of 2018 at 180 million baht, an increase of 12% year-on-year. Total net profit for 2018 was 536 million baht.
Total operating income in the last quarter of 2018 was 1.7 billion baht, an increase of 7% year-on-year from the last quarter of 2017. The company's earnings before interest, tax, depreciation and amortisation was 561 million baht during the same period, an increase of 11% year-on-year.
In 2019, the company predicts net profit will grow by 10-15% year-on-year.
"Thailand will have a total of 41.1 million tourists visiting Thailand this year, an increase of 7.5% from 2018," Mr Petch said. "Thailand is still a popular destination for tourists. The growth of the industry is attributed to signs of recovery since the last quarter of 2018."
