Reserve success inspires Centara to add more luxury hotels

After carving out a strong presence across Asia’s mid and upscale hotel segments over the last four decades, Thai hospitality firm Centara is cautiously stepping into the luxury market, with early signs of success inspiring more high-end properties.

At a recent media event in Sydney, Centara Hotels Vice President Operations David Martens told LATTE that the Thailand-based hospitality company’s mainstay will remain its mid and upscale portfolios, but that more luxe hotels are on the agenda.

Centara’s portfolio now counts 42 properties, but it has a pipeline of around 40 properties in the making, and around 10% of those will be at the luxury end, Martens shared.

The company launched its first Reserve property in 2021 in Koh Samui and is in the process of converting its Krabi Centara Grand into the second, with the overhauled property scheduled to reopen as Centara Reserve Krabi later this year.

The company employed with a similar tactic with Centara Reserve Samui which is a conversion of the Centara Grand Beach Resort Samui, the first hotel built on the island 30 years ago. The project was designed as an “experiment” to see how the company would go at the luxury end of the market, Martens explained, adding that the results were compelling.

“The first property has done extremely well,” he shared. “It was an existing property and it was also well known. So when we added a luxury layer, it wasn’t difficult for our partners to sell.”

Service is key to the more luxurious offering, as is space, according to Martens. The company is prioritising suites at the luxury end – transforming smaller rooms into larger spaces.

Positive guest feedback quickly validated the approach. “That’s what drives us to do more,” he explained. “Because also the daily rates achieved are much higher than anticipated.”

Part of this success is attributed to the leadership behind the transformation, with Martens highlighting the achievements of General Manager Neil Li. “He has really has driven that hotel to the next level,” he said. “He’s now overseeing the next one in Krabi.”

With Reserve performing so well so far, its success could inspire further developments – a relatively easy undertaking for Centara given its ample portfolio of hotels and land that could be used to expand the brand. “It’s quite easy for us to expand,” Martens said, “The feedback drives us to do more.”

Among the new projects on the horizon are an expansion of Centara Reserve Samui. “We’re building another level,” he said. Centara is also planning its Bali debut with a new property, still in negotatiation, that will sit at the luxury end, he revealed. “Luxury, obviously, it’s got to be in very key locations.”

A renovation of Centara Hua Hin, set within a heritage building, is also taking place with new villas being added under the boutique Centara Collection brand.

The guest profile is already showing interesting trends with Australia proving to be a strong market for the company’s more high-end properties.