Centara Targets Larger Hotel Partners for Growth
Centara Hotels & Resorts plans to accelerate international expansion through management contracts with major property investors rather than direct ownership.
Stock photo for illustration only, not from the actual event
- Centara is shifting toward an asset-light expansion strategy via management deals
- The company targets a portfolio mix of 70% managed and 30% owned hotels
- Ten new hotel openings are planned globally for the year 2027
Centara Hotels & Resorts, the prominent Thai hospitality brand backed by Central Group and the Chirathivat family, is accelerating its international growth by partnering with large property investors instead of pursuing individual hotel acquisitions.
Chief Operating Officer Michael Henssler told Skift that Centara is moving further into an asset-light strategy, focusing on managing properties owned by external investors rather than funding developments directly from its own balance sheet.
Stock photo for illustration only, not from the actual event
The company is targeting a strategic mix of approximately 70 percent management agreements and 30 percent owned or equity-backed properties. Centara is already approaching this target, having achieved roughly 62 percent managed hotels by total property count.
As of August, Centara operated a total of 52 hotels, comprising 23 owned or joint-venture properties and 29 managed hotels, alongside another 41 properties currently in its development pipeline.
"We are going more into an asset-light strategy to double in size without doubling our balance sheet."
Michael Henssler, Chief Operating Officer, Centara Hotels & Resorts
Centara plans to pursue management contracts in the Middle East, Europe, Indonesia, Malaysia, and China, while deliberately reserving its own capital investments for key core markets including Japan, Thailand, and Bali.
Transitioning toward an asset-light model is a critical tactical shift for regional hotel operators aiming to scale rapidly against global hospitality giants like Hilton or Minor Hotels. By minimizing capital expenditure on real estate ownership, mid-sized operators can expand their geographical footprint more flexibly while mitigating financial exposure.
Looking ahead, the company has scheduled ten property openings for 2027, including four in Thailand and one in Cyprus. Furthermore, the Centara Reserve resorts located in Krabi and Hua Hin are designated to serve as essential reference properties for prospective hotel owners.
Source: Skift
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