Thai group Centara Hotels has revealed plans to launch a new budget hotel brand, expanding its presence in the domestic travel market in Thailand.
The new brand will be launched in partnership with PTT Oil and Retail Business, a major petrol station operator in Thailand. Details of the planned expansion were revealed as part of a trading update, presented by Centara Hotels & Resorts chief executive Thirayuth Chirathivat at the end of February 2026. He said the business is expecting to grow revenues by 15% during 2026, expecting a recovery in the tourism sector in Thailand through the year.
First Sites Already Identified
Centara’s new budget brand will be developed at roadside sites, alongside existing fuel stations and rest stops operated by PTT. The two companies have already identified six sites, to be developed later in 2026 and through into 2028. Each will have between 69 to 80 rooms, though larger sites will also be considered. One location in Bangkok will have as many as 160 rooms.
With PTT’s roadside sites already operating with round the clock staffing, the hotels should be a good fit. Sites already have a food offering, too, providing ready made support services for the accommodation. The first sites will be at Bangkok, Kanchanaburi, Ayutthaya, Surat Thani, Chon Buri and Songkhla. Room rates are expected to be THB8-900 per night in the regions, and THB1,200-1,300 in Bangkok.
More broadly, the mainstream Centara business expects to see improved occupancy during 2026, with a target rate of 75-80% pencilled in. This represents a noticeable increase from the 72% average occupancy recorded at the group’s hotels in 2025. With increasing demand, Centara expects to be able to push up room rates around 8-10% during the current year.
Centara is planning to invest significantly in growth, and also in upgrading its existing portfolio. The company has committed THB16 billion over a three year period, with THB4 billion alone being spent during 2026 on property renovations.
Aside from its new brand, Centara plans four other hotel openings during 2026, which will add 1,429 rooms to its portfolio. In Japan, it will open a property under the Centara Life brand, in the second quarter. Centara Life Osaka will feature 300 rooms, while guests will be able to enjoy a rooftop terrace with views of Tsutenkaku and Abeno Harukas.
Expanding The Portfolio Outside Thailand
In Vietnam, the group expects to open Centara Hotel & Residences Van Don in late 2026, a substantial development with 481 rooms. This will be followed on an adjacent site by the 2027 opening of Crystal Holidays Harbour Van Don, a hotel with 496 rooms. Centara has a pipeline of further projects across Vietnam to come.
Nepal is another country market Centara is looking to expand into. It will shortly launch the Himalayan Hideaway Resort Pokhara as part of the Centara Collection. The secluded resort will have just 42 rooms.
