PTT Oil and Retail Business (OR) is collaborating with Centara Hotels & Resorts to establish budget hotels at PTT service stations and other strategic locations as part of a broader initiative to boost daily visitor numbers across its nationwide network to 5 million.
ML Peekthong Thongyai, CEO of OR, stated that the company aims to increase traffic at its more than 2,000 PTT service stations from the current approximately 3.9 million daily visits to 5 million. This expansion is driven by a strategy to diversify its offerings and services, catering to evolving consumer lifestyles and strengthening the overall service station ecosystem.
The budget hotel venture is a key component of this new strategic direction. OR has entered into a joint venture agreement with Centara Hotels & Resorts to form Pit Stop Hotel Co., with OR holding a 49% stake and Centara holding 51%. This joint venture will oversee the development of budget hotels at PTT stations and other locations identified as having significant potential.
Initially, the partners plan to develop six pilot hotels in Don Mueang (Bangkok), Ayutthaya, Pattaya, Kanchanaburi, Hat Yai, and Phuket, with an estimated investment ranging from 700 million to 1 billion baht. The success and potential of these initial sites will inform further expansion plans.
ML Peekthong emphasized that these hotels are expected to attract new customers to the PTT service station ecosystem, which already includes convenience stores, Café Amazon outlets, and laundry services, among others. He projected that an increase in daily traffic to 5 million visits, from the current roughly 4 million, could lead to an increase in EBITDA (Earnings before interest, taxes, depreciation, and amortisation) of approximately 5 billion baht. He also noted that Centara’s expertise in hotel operations and established service standards would be a significant asset to the venture.
Rajsuda Rungsiyakull, SEVP for Special Affairs 1 at OR, explained that the budget hotel concept is designed to offer modern travelers convenient, clean, safe, and value-for-money accommodation. These hotels will adhere to Centara’s service standards while maintaining competitive and reasonable room rates.
The first hotels are anticipated to open gradually between 2027 and 2028, with OR aiming for a network of 50 properties by 2031. Each hotel will feature five storeys, comprising 79 standard rooms and 10 capsule rooms. Initial average room rates are expected to be between 800 and 1,300 baht per night, varying by location and local market conditions. The company is targeting an occupancy rate of 75–80%.
Ms. Rajsuda added that if the business performs according to expectations, OR intends to explore franchise opportunities for further expansion of the concept. The typical payback period for such a venture is estimated at seven to 10 years, and OR is committed to keeping construction costs below 1 million baht per room. This budget hotel initiative is a crucial part of OR’s broader strategy to grow its non-oil businesses and enhance customer traffic and spending within its PTT service station network.