Thai Property Giant Origin Expands into Hotels and Warehousing as Market Adapts
Origin Property plans to boost sales to 30 billion THB by 2025 amidst ongoing challenges in the Thai real estate sector.
In recent years, the Thai real estate sector has faced multiple challenges impacting purchasing power and sales figures.
Rising construction costs have prompted several companies to diversify their operations in pursuit of stable revenue streams.
Origin Property, a key player in the sector, has announced its expansion into the hotel and warehousing businesses to generate long-term income and profits.
The company aims for total sales of 30 billion THB (approximately $870 million) in 2025, with projected total revenue of 14 billion THB (around $400 million).
Peerapong Jaroon-ek, CEO of Origin Property, emphasized the necessity for the company to become more resilient in light of ongoing risks, introducing a strategic focus termed "Resilience Leads to Sustainable Growth" to enhance organizational adaptability to market changes.
Origin Hotel, currently operating nine hotels across Thailand—alongside joint venture properties—boasts over 2,000 rooms.
For the financial year 2023, the hotel segment reported revenues of 1.472 billion THB, reflecting a 65% year-on-year growth, accompanied by an EBITDA of 514 million THB, up 74% year-on-year.
The company plans to open three new hotels in Bangkok, Phuket, and Chiang Mai in 2025, adding a total of 764 rooms.
By 2027, the goal is to operate 12 hotels with 3,000 rooms, representing a projected investment of 4 to 7 billion THB.
In parallel, the logistics and warehousing segment aligns with the broader growth of logistical trends in the region.
A subsidiary, Alpha Industrial Solutions, currently manages nine strategically located warehouses totaling over 383,039 square meters in sites such as Rangsit, Bangna, and Laem Chabang.
The company aims to expand its logistics footprint to 1 million square meters within the next five years.
Both the hotel and warehousing ventures fall under Origin Property's five core business areas, which also include:
1. Origin Vertical Corporation, responsible for condominium management, anticipating five new project launches with a combined value of 12.5 billion THB in 2025.
2. Britania Public Company, focusing on housing developments, with plans for six new projects valued at approximately 7.5 billion THB.
3. Primo Service Solutions, targeting service sector revenue, projected to generate 1.85 billion THB in 2025.
For the core real estate business, Origin Property plans to launch 11 new projects worth a total of 20 billion THB in 2025, with a target presale of 30 billion THB and expected ownership transfers of approximately 22 billion THB.
The anticipated total income is set at 14 billion THB, supported by a backlog of 44.562 billion THB, ensuring revenue recognition over the following four years.
The company's strategy includes expanding its customer base in Thailand, featuring notable celebrity endorsements to enhance brand awareness.
International outreach is aimed at attracting more foreign customers, where initiatives include a roadshow abroad and collaboration with sales agents, with renowned Hong Kong actor Irene Wan serving as a brand ambassador for the Park Origin Collection in Asia.
The strategic direction for Origin Property encompasses seven key areas:
1. Focus on mainstream revenue
2. Unique value proposition
3. Market expansion
4. Digital transformation
5. Financial structure management
6. Customer financial support
7. ESG and Green Revolution.
Rising construction costs have prompted several companies to diversify their operations in pursuit of stable revenue streams.
Origin Property, a key player in the sector, has announced its expansion into the hotel and warehousing businesses to generate long-term income and profits.
The company aims for total sales of 30 billion THB (approximately $870 million) in 2025, with projected total revenue of 14 billion THB (around $400 million).
Peerapong Jaroon-ek, CEO of Origin Property, emphasized the necessity for the company to become more resilient in light of ongoing risks, introducing a strategic focus termed "Resilience Leads to Sustainable Growth" to enhance organizational adaptability to market changes.
Origin Hotel, currently operating nine hotels across Thailand—alongside joint venture properties—boasts over 2,000 rooms.
For the financial year 2023, the hotel segment reported revenues of 1.472 billion THB, reflecting a 65% year-on-year growth, accompanied by an EBITDA of 514 million THB, up 74% year-on-year.
The company plans to open three new hotels in Bangkok, Phuket, and Chiang Mai in 2025, adding a total of 764 rooms.
By 2027, the goal is to operate 12 hotels with 3,000 rooms, representing a projected investment of 4 to 7 billion THB.
In parallel, the logistics and warehousing segment aligns with the broader growth of logistical trends in the region.
A subsidiary, Alpha Industrial Solutions, currently manages nine strategically located warehouses totaling over 383,039 square meters in sites such as Rangsit, Bangna, and Laem Chabang.
The company aims to expand its logistics footprint to 1 million square meters within the next five years.
Both the hotel and warehousing ventures fall under Origin Property's five core business areas, which also include:
1. Origin Vertical Corporation, responsible for condominium management, anticipating five new project launches with a combined value of 12.5 billion THB in 2025.
2. Britania Public Company, focusing on housing developments, with plans for six new projects valued at approximately 7.5 billion THB.
3. Primo Service Solutions, targeting service sector revenue, projected to generate 1.85 billion THB in 2025.
For the core real estate business, Origin Property plans to launch 11 new projects worth a total of 20 billion THB in 2025, with a target presale of 30 billion THB and expected ownership transfers of approximately 22 billion THB.
The anticipated total income is set at 14 billion THB, supported by a backlog of 44.562 billion THB, ensuring revenue recognition over the following four years.
The company's strategy includes expanding its customer base in Thailand, featuring notable celebrity endorsements to enhance brand awareness.
International outreach is aimed at attracting more foreign customers, where initiatives include a roadshow abroad and collaboration with sales agents, with renowned Hong Kong actor Irene Wan serving as a brand ambassador for the Park Origin Collection in Asia.
The strategic direction for Origin Property encompasses seven key areas:
1. Focus on mainstream revenue
2. Unique value proposition
3. Market expansion
4. Digital transformation
5. Financial structure management
6. Customer financial support
7. ESG and Green Revolution.
