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Centel Planning REIT for Managed Hotels

By on Mar 31, 2015 in Hotel-Tourism, Property News
Ronnachit: Helping owners to list

Ronnachit: Helping owners to list

SET-listed Central Plaza Hotel Plc (CENTEL) may set up a real estate investment trust (REIT) for hotels under its management contracts.

The move would help property owners to list on the Stock Exchange of Thailand (SET) through the trust fund.

Chief financial officer Ronnachit Mahattanapreut said two owners of its managed hotels had shown strong interest in joining the REIT establishment and the company was conducting a feasibility study

“The REIT will help to ease financial burdens for property owners and is a good way to let them have more liquidity over the assets, as REIT holders are able to trade the units on the stock market,” he said.

As of Feb 28, the company managed 28 hotels for other developers, representing 65% of the 43 hotels in its portfolio.

Centel plans to add 10 new managed hotels each year, and the proportion of hotels under management contracts will reach 76% of the 1,000 properties in its portfolio by the end of 2020.

The company also operates 15 of its own hotels and one has already been transferred to its Centara Hotels & Resorts Leasehold Property Fund (CTARAF).

Mr Ronnachit said Centel did not plan to turn its property fund into a REIT yet.

This year, Centel targets a better performance for both hotel and food operations and plans to spend 26 billion baht to expand both businesses, he said.

Some 19 billion baht will be used for hotel expansion and the balance for food, which will include mergers and acquisitions or joint ventures worth 1 billion baht.

Among hotel investments, 8 billion baht will go for two hotels in the Maldives and joint-venture hotels in Myanmar and Sri Lanka.

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Source: Bangkok Post  26 March 2015

Nora has been in the Corporate Communications arena for a number of years. Nora's role is to communicate all newsworthy items that are of a PR nature.

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