Behind the Billion-Baht Hotel Sale: Origin Hotels Business Strategy to Build a 58 Billion Baht Portfolio

The move by Origin Property Public Company Limited (ORI) to sell two hotels—Staybridge Suites Bangkok Thonglor and InterContinental Bangkok Sukhumvit—may lead some to interpret that ORI is downsizing or facing stagnation. However, according to executives, this is a deliberate step aligned with their original strategy, central to an Asset Recycling business model that differentiates them in the real estate market.

Thairath Money conducted an exclusive interview with Chanchai Pansopa, Chief Executive Officer of Origin Hotel Public Company Limited, the flagship company in ORI’s hospitality and tourism business group. He explained that the sale of these assets is part of a planned Build–Operate–Exit–Reinvestment strategy established from the start.

"The real estate business has become much more dynamic; nothing is permanent. We must keep pace with changes in all dimensions. When exiting (selling), we have to think about how to make a profit," he said.

The sale of these two hotels generated net cash inflows exceeding 1.3 billion baht. This is not merely a lump sum but represents Asset Recycling—the reinvestment of capital into new projects continuously to foster parallel growth. This clearly communicates that profit-driven sales are a business model, not a sign of business weakness.

Five-Year Plan: Investing 15 Billion Baht Annually Towards a 58 Billion Baht Recurring Income Portfolio

The establishment of ORIGIN HOTEL and its promotion as the flagship company within ORI signals a genuine intent to reduce reliance on high-volatility residential sales income, which is cyclical with the economy, and instead to create stable, recurring cash flow.

Executives revealed that ORIGIN HOTEL has clearly defined a five-year strategic plan targeting completion by 2030, with the following goals:

• To expand its portfolio to 33 projects, including 29 hotels and 4 commercial/office properties.
• To achieve a total portfolio value exceeding 58 billion baht.
• To allocate an average annual investment budget of 15 billion baht to drive asset growth.
• Currently, revenue from the hotel business has increased from a smaller share compared to residential projects to now 25–30%. There are plans for an initial public offering (IPO) once the hotel portfolio reaches approximately 15–20 properties and market conditions are favorable at that time.

A key strategy driving these goals is the creation of an Open Platform, meaning the company welcomes three groups of partners: development partners, landlord partners, and investment partners, to accelerate growth with appropriate cost efficiency.

"Many prime urban locations awaiting development lack sufficient people and investment capital, presenting an opportunity to implement our business model," he added.

What hotels does ORIGIN HOTEL currently operate?

Presently, ORIGIN HOTEL is a market leader in hotels and hospitality, especially in the EEC zone and popular tourist cities, operating nine hotels with a total of 2,306 rooms valued at over 13.37 billion baht. Examples of managed hotels include:

• International brands such as Staybridge Suites Bangkok Sukhumvit, Holiday Inn & Suites Sriracha Laem Chabang, and Holiday Inn Express Rayong.
• Hotels in tourist cities like ibis Hua Hin, Phuket, Krabi, and Wellness Stay & Hotel Sukhumvit 107.
• (Note: InterContinental Bangkok Sukhumvit and Staybridge Suites Bangkok Thonglor have been sold as part of the Exit Strategy.)

Global Alliances and the Significance of "Software" in the Hotel Business

Executives also highlighted that the recent major move involved signing a significant partnership with Marriott International, a global hotel chain with over 260 million Marriott Bonvoy members. This collaboration brings an international standard and brand recognition to three new hotels under development, with a combined value of about 8 billion baht, including:

1. Bangkok Marriott Sukhumvit Onnut
2. Courtyard by Marriott Bangkok Sukhumvit Onnut
3. Moxy Phuket Chaofah

Additionally, there are plans to develop four more Marriott-branded hotels in future locations (Bangkok, Phuket, Chonburi, Chiang Mai), with a total value exceeding 10 billion baht.

Chanchai emphasized that the difference between developing real estate for hotels versus retail is the software aspect. The hotel business is highly complex, requiring "software" in terms of revenue management, dynamic pricing, and personnel management. Partnering with a global chain is not just about branding but also leveraging global expertise and the strongest distribution channels to maximize occupancy rates and total revenue.

Business Lessons in an Era Where "You Have to Swim Fast"

ORIGIN HOTEL's recent actions offer important lessons for businesses today in several dimensions, including:

• Every business must have an Exit Strategy. Investment should be viewed not only in terms of capital injection but also the process of profiting from asset sales or Asset Monetization from day one.
• Reducing reliance on cyclical income is crucial because businesses generating recurring income provide risk protection and long-term sustainability.
• Synergy drives growth. Being an Open Platform and leveraging strengths from global partners enable rapid and efficient expansion without bearing all financial burdens alone.
• Software is a competitive advantage. Success depends not only on "hardware" (physical buildings) but also on "software" (management, marketing, and technology), which create differentiation and profitability in the hotel market.

In a rapidly changing and dynamic business landscape, quick and strategic adaptation along with building a stable financial foundation are messages ORIGIN executives communicate—lessons all entrepreneurs should heed.

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