Centara Hotels & Resorts, Bangkok, on Thursday launched the COSI Hotels brand, “designed for cost-conscious travelers who mostly do all their own bookings online and who are searching for pocket-friendly accommodation prices.”
The first COSI Hotel is projected to open in 2015 and Centara plans to have at least 30 operational by 2020, which is forecast to generate income of around 2,200 million baht (US$71.6 million), as well as 180 million baht (US$5.9 million) in management fees.
With a dynamic pricing strategy, average room rate is expected to be approximately 1,000 to 1,250 baht per night (US$32.55 to US$40.69).
Centara CEO Thirayuth Chirathivat said the COSI brand has been developed in response to Asia Pacific’s rapid economic expansion, which is increasing the volume of both domestic and international journeys. “Traveling by low-cost airline in the Asean grouping currently accounts for 51% of the aviation industry in the Asean,” Chirathivat said. “Further, the Asean Economic Community or AEC will be implemented two years from now adding further demand. These factors are leading to the need for convenient accommodation and also value for money.”
Chirathivat added that “dot com” has been added to the brand logo because marketing and sales will be primarily through websites.
Suparat Uahwatanasakul, vice president of business development at Centara International Management Co., explained the meaning of COSI as:
C is Comfortable – Feel comfortable both with the room and facilities of the hotel
O is Open – Our product is easy to understand and affordable
S is Sensible – Sensibly and friendly price and eco-friendly design
I is Individual – Welcome all travelers
COSI Hotels will focus on clearly identified products that include free Wi-Fi everywhere in the hotel, easy and convenient “grab-n-go” restaurants, seminar rooms for corporate guests, and an entertainment corner in the lobby area for movies and live sport.
“We expect the construction costs of a COSI hotel to be around 1.5 million baht per room’” Uahwatanasakul said. “Our development plan is under the process of requesting construction permission for one hotel, which is our prototype hotel planned to open in 2015.
“We plan 100% investment or a joint venture of one hotel a year and to further manage four hotels a year,” Uahwatanasakul added. “We intend to expand through the significant destinations of Thailand then will further expand to Asean countries, China, Australia, and New Zealand.”