Despite the challenges posed by the COVID-19 pandemic, the Erawan Group is thriving and looking towards expanding its budget accommodation offerings. The company, led by Chansamorn Wattanavekin and Isara Vongkusolkit and their families, is investing 10 billion baht over the next six years to grow their Hop Inn chain to 150 hotels across the Asia-Pacific region. This move is part of the group’s strategy to increase revenue from its budget segment, which currently accounts for 12% of group sales, by 2030.
The Erawan Group has a rich history, with Chansamorn’s son Supol and Isara founding the company in 1982. Initially focusing on real estate, the group ventured into the hospitality industry with the opening of the Grand Hyatt Erawan in 1989, followed by the JW Marriott Bangkok in 1997. Over the years, Erawan has become one of Thailand’s largest hotel groups in terms of the number of hotels owned and operated.
The tourism sector has been a significant driver of Erawan’s growth, with the group experiencing a resurgence in 2023. Despite the challenges of the pandemic, Erawan saw a nearly 50% increase in revenue to 7 billion baht compared to the previous year, marking a return to profitability. This positive trend has fueled the company’s expansion plans and confidence in the future of the hospitality industry in the region.
With the increasing demand for budget accommodation options, the Erawan Group is well-positioned to capitalize on this growing market segment. By expanding its Hop Inn chain, the company aims to cater to a wider range of travelers looking for affordable and quality accommodation. This strategic move is expected to drive significant revenue growth for the group and solidify its position in the hospitality industry.
The announcement of Erawan’s expansion plans comes as part of Forbes’ coverage of Thailand’s Richest 2024. The group’s continued success and aggressive growth strategy have garnered attention and recognition in the industry. Subscribers to Forbes Asia can access the full list of Thailand’s Richest 2024, providing insights into the country’s most influential and successful business leaders and companies.
As the Erawan Group embarks on its ambitious expansion journey, it continues to build on its legacy of excellence in the hospitality sector. With a strong foundation and a clear vision for the future, the company is poised to become a key player in the budget accommodation market in the Asia-Pacific region. Investors and industry watchers will be closely following Erawan’s progress as it works towards achieving its goal of 150 Hop Inn hotels and quadrupling revenue from its budget segment by 2030.
