PTT Plc is the leading corporation in the nation that dabbles with gas and oil. They are already busy finding a partner before the month of November in order to venture into the budget hotel market. Their investment will be focused on budget establishments that are located close to the petrol stations owned by the corporation. Despite the high supply, value hotel in Bangkok is recognized to be in high demand as well.
AuttapholRerkpiboon, the executive vice president in charge of oil business, said that they are already targeting three potential partners that are all experts in hotel management.
The decision of the company is a part of a measure they are taking in order to diversify their business. This is a strategy to reduce the risks that come with the unpredictable price of oil in the global market due to the pressures from the retail sectors and the industries that are not oil related.
Mr. Auttapol did not reveal the names of the probable company partners but he shared that the hotels they are planning to invest in will have between 30 and 80 rooms for guests.
PTT is still deliberating whether to construct the budget hotels using the lands owned by the company while employing the expertise of their chosen partner or if they are going to make investments together with their partners to find locations for the new hotels. These locations can be leased based on a long-term contract.
The company is planning to build around 50 hotels that are close to their petrol stations within a five-year period. Each construction site will be allocated with 2 to 3 rai. While on the planning stage, the company is also busy with the spinning off procedures they need to do in order to create a single unit with the PTT Oil and Retail Co with a business worth 122 billion baht. It will also be included in the Stock Exchange of Thailand.
Tourists looking for value hotel in Bangkok will have more options in the coming years if the venture of PTT becomes a success.