Centara Hotels & Resorts is set to expand into the budget hospitality segment through a strategic joint venture with PTT Oil and Retail Business (OR).

The initiative represents nearly one-third of Centara’s 1,429-room development pipeline scheduled for 2026. According to Thirayuth Chirathivat, CEO of Centara Hotels & Resorts, the concept capitalises on strong demand along major road networks.

“There is significant opportunity at service station locations on key transport routes. Travellers heading to Bangkok or other major cities may prefer a convenient stopover outside urban centres,” he explained.

With 24-hour staffed stations offering safe and accessible environments, the hotels will cater particularly to sales professionals and business travellers seeking short stays of five to seven hours before continuing inter-provincial journeys.

The partnership plans to roll out six properties between 2027 and 2028, leveraging OR’s nationwide network of more than 2,000 service stations and retail complexes. Many of these locations are strategically positioned near airports and prominent tourist destinations. Provincial sites typically span five to ten rai, allowing sufficient space for hotel construction.

Regional properties are expected to feature 69 to 80 rooms, with average nightly rates ranging from 800 to 900 baht (approximately US$25–29). The joint venture also intends to develop at least one Bangkok location offering around 120 rooms, priced between 1,200 and 1,300 baht per night.

The concept will integrate loyalty benefits across both Centara and OR platforms, while also providing electric vehicle charging facilities.

“At PTT stations, travellers can refuel and recharge conveniently, unwind in reliable Centara-standard comfort, earn rewards, and purchase essential travel items — all within one seamless ecosystem,” Thirayuth added.

Centara’s entry into the budget segment is driven by strong margin potential. Gun Srisompong, Chief Financial Officer of Centara Hotels & Resorts, noted that profitability in hospitality is typically strongest at either the premium or budget end due to cost efficiencies.

“We anticipate long-term occupancy levels of 70 to 80 per cent,” he stated.

While the joint venture has already been disclosed to the Stock Exchange of Thailand, the new budget brand will be officially unveiled in March 2026, alongside the formal signing of the partnership agreement.