|By Darana Chudasri, Bangkok Post,
ThailandMcClatchy-Tribune Regional News
Sept. 08, 2011--Central Plaza Hotel (Centel), one of the country's largest hotel and restaurant operators, plans to expand its operations into convention-centre management following its recent deal to manage a new hotel and convention complex at the Government Centre at Chaeng Watthana.
The company will begin a three-year management deal on Sept 21 with Dhanarak Asset Development, a state-owned company overseeing the Government Centre project. Centel expects to earn 8% from project revenues over the duration of the deal, projected at 1 billion baht.
The Centra Government Complex Hotel and Convention Centre is expected to open in July 2012. The project will be the third convention centre under Centel management, after one at CentralWorld and the Bangkok Convention Centre at CentralPlaza Lardprao.
Ronnachit Mahattanapreut, Centel's senior vice-president for finance, told investors at a briefing yesterday that the company might establish a new subsidiary dedicated to serving the convention management business in the future.
"We plan to put more effort into the convention centre segment in the future," he said.
Centel's new hotel in Khon Kaen, expected to open in February 2012, will also have a convention centre.
Revenues from the Government Centre project will begin to be realised in the fourth quarter. Centel recently raised its revenue target for 2011 to 11.5 billion baht, up from 11 billion, following the acquisition of the Ootoya restaurant chain. Overall the company expects 24% revenue growth from 2010, when it booked 9.4 billion in revenues.
Restaurants are projected to account for 56% of revenues this year, with hotels the rest. In 2012, revenues are projected at 13.6 billion baht, up 16-17% from this year, with annual growth projected at 12% after that to 2015.
Shares of CENTEL closed yesterday on the Stock Exchange of Thailand unchanged at 10.30 baht in trade worth 16.57 million. Over the past 52 weeks, the stock has traded between a high of 12.10 baht and a low of 4.44.
(c)2011 the Bangkok Post (Bangkok, Thailand)
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