Centara Bets on Thailand's Second-Tier Cities as Hotel Giant Eyes Next Wave of Growth

BANGKOK — Thailand's biggest tourism destinations may still dominate the headlines, but hotel giant Centara Hotels & Resorts is increasingly looking beyond Bangkok, Phuket and Pattaya for its next wave of growth.

The Thai hospitality group sees growing opportunities in second-tier cities, where demand from domestic travellers, business visitors and leisure tourists could create new room for hotel development.

Among the destinations attracting Centara's attention is Ratchaburi, where the company sees potential from both leisure and business travel.

The strategy signals a broader shift in Thailand's hospitality industry: the next big hotel opportunity may not always be in the country's most famous tourist destinations.

Centara looks beyond Thailand's biggest tourism hubs

For decades, Thailand's hotel industry has focused heavily on major destinations.

Bangkok.

Phuket.

Pattaya.

Chiang Mai.

Samui.

Krabi.

But as competition intensifies and land costs rise in established tourism centres, hotel operators are increasingly looking towards emerging cities and regional destinations.

Centara believes second-tier cities could offer fresh opportunities, particularly in locations with a combination of:

• Growing domestic tourism
• Business travel
• Government and infrastructure investment
• Local attractions
• Meetings and events
• Weekend travel demand
• Lower development costs

The company's interest in Ratchaburi reflects this strategy of identifying destinations that may not yet have the same hotel saturation as Thailand's largest tourism markets.

Why Ratchaburi is suddenly on the hotel industry's radar

Ratchaburi has traditionally been better known as a destination for domestic travellers than international mass tourism.

But that could also be one of its biggest advantages.

Located within relatively easy reach of Bangkok, the province offers a mix of:

Nature tourism.

Cultural attractions.

Weekend escapes.

Local food.

Business travel.

Meetings and events.

For hotel operators, destinations such as Ratchaburi can attract travellers looking for alternatives to Thailand's increasingly crowded major tourist hubs.

Centara has already expanded its domestic footprint with Centara Life Wisma Hotel Ratchaburi, reinforcing its belief that regional destinations can support modern branded accommodation.

Thailand's second-tier cities could become the next hotel battleground

Centara's strategy comes as the wider hospitality industry increasingly turns its attention to secondary and tertiary destinations.

A recent analysis of Asia-Pacific hotel development found that the overwhelming majority of hotel deals in recent years have taken place outside the region's biggest gateway cities.

The trend suggests hotel developers are searching for growth where competition may be lower and new travel demand is still emerging.

For Thailand, that could mean more investment flowing into destinations beyond the traditional tourism giants.

The question is no longer simply:

"Where are tourists already going?"

Hotel developers are increasingly asking:

"Where will tourists go next?"

Centara is expanding across Thailand — and beyond

The second-tier city strategy is only one part of Centara's much larger growth plan.

The company has outlined an ambitious 2026 expansion strategy involving new properties, renovations and international growth.

Centara's 2026 plans include new and expanded operations across:

• Thailand
• Japan
• Vietnam
• Nepal
• The Maldives

Investor materials showed Centara targeting 1,429 new rooms in 2026 across domestic and international markets, while also reopening renovated rooms.

The strategy reflects the company's attempt to grow across multiple price points and travel markets rather than relying on a single type of customer.

From luxury resorts to budget hotels

Centara is not just expanding geographically.

It is also expanding across different segments of the hotel market.

At the luxury end, the company is preparing to open Centara Reserve Krabi, its second property under the premium Reserve brand, in late 2026.

At the other end of the market, Centara has partnered with PTT Oil and Retail Business to enter the budget hotel sector.

The joint venture plans to develop a network of budget hotels linked to PTT Station service complexes, with the first phase involving six properties across Thailand and openings planned between 2027 and 2028.

That means Centara's expansion is not simply about building more luxury resorts.

It is about reaching:

Luxury travellers.

Families.

Business visitors.

Domestic tourists.

Budget-conscious travellers.

Regional travellers.

And increasingly, guests travelling to destinations beyond Thailand's biggest cities.

The real opportunity may be domestic tourism

Thailand's international tourism industry attracts enormous attention.

But domestic travellers remain critically important for hotels outside the country's main international gateways.

Second-tier cities often benefit from:

• Weekend trips
• Long weekends
• School holidays
• Family travel
• Corporate meetings
• Government travel
• Weddings and events

For a destination such as Ratchaburi, its location within reach of Bangkok could make it particularly attractive for short leisure trips.

That creates a different type of hotel market.

Instead of relying entirely on international arrivals, properties can build demand from Thai travellers throughout the year.

Less crowded cities, more room for growth

One major advantage of second-tier destinations is the possibility of entering markets before they become overcrowded.

Popular destinations such as Phuket and Bangkok already have intense competition.

New hotels entering those markets must compete with:

• International hotel brands
• Luxury resorts
• Boutique hotels
• Budget accommodation
• Serviced apartments
• Short-term rentals

In emerging destinations, the competition may be less intense.

That can give major hotel brands an opportunity to establish themselves earlier.

But there is also risk.

A city can have attractions without having enough consistent hotel demand.

That means companies like Centara must carefully determine whether visitors will stay overnight — and how often.

Centara is betting on a diversified future

Centara's broader strategy appears to be built around one major principle:

Don't depend on one market.

The company is expanding across different countries.

Different hotel categories.

Different traveller groups.

And increasingly, different types of destinations.

Its 2026 growth plans include major international development while continuing to invest heavily in Thailand.

Centara has also continued renovations and redevelopment at some of its best-known properties, including projects in Hua Hin and Krabi.

The company expects its hotel business to continue growing in 2026, supported by new openings, renovated properties and portfolio expansion.

Can second-tier cities become Thailand's next tourism success story?

That could be the bigger question behind Centara's strategy.

Thailand has spent decades building internationally recognised tourism brands.

But future growth may require more destinations.

More reasons for tourists to travel beyond Bangkok and Phuket.

And more infrastructure connecting visitors to regional cities.

For second-tier destinations to become major hotel markets, they will need more than attractive scenery.

They will need:

• Better connectivity
• Strong destination marketing
• Reliable tourism infrastructure
• Restaurants and local attractions
• Events
• Quality accommodation
• Sustainable development

Centara's expansion suggests the company believes some regional cities are increasingly ready for that next step.

What this means for Thai travellers

For travellers, the expansion could mean more branded hotels outside Thailand's traditional tourism centres.

That could lead to:

More accommodation choices.

Better hotel standards.

More competitive pricing.

New tourism destinations.

Greater investment in local economies.

And potentially more reasons to take weekend trips outside Bangkok.

For local communities, hotel development can also create jobs and increase spending at:

• Restaurants
• Cafes
• Tourist attractions
• Transport services
• Local shops
• Small businesses

But rapid development will also need to be managed carefully to ensure that local communities benefit from tourism growth.

The next tourism boom may be outside Bangkok and Phuket

Centara's interest in second-tier cities could be an early sign of a wider change in Thailand's tourism industry.

The country's biggest destinations are unlikely to lose their importance.

Bangkok will remain a global gateway.

Phuket will remain a tourism powerhouse.

Pattaya and Krabi will continue attracting millions.

But Thailand's next growth story could increasingly come from places that previously sat outside the spotlight.

Cities where domestic tourism is growing.

Where land is still available.

Where new infrastructure is improving access.

And where travellers are looking for something different.

Centara is making its move

The hotel giant's strategy is clear.

Expand internationally.

Invest in luxury.

Enter the budget market.

Renovate established properties.

And look beyond Thailand's biggest tourism centres.

For Centara, the next major hotel opportunity may not always be in a famous beach destination or Bangkok's busiest business district.

It could be in a city that many travellers still overlook.

And if the strategy works, Thailand's so-called second-tier cities may not remain second-tier for long.

WWC ONE MEDIA J.M.D