BLOG: PTT Scours Ways of Funding Core Business
As a sustained recovery in global oil prices remains uncertain at the moment, PTT is also exploring the feasibility of venturing into the hospitality business through building budget hotels at its service stations.
PTT executive vice president for oil business Auttapol Rerkpiboon said June 23 in local media Bangkok Post that the company is conducting a feasibility study on the potential for entry into the hospitality business by setting up budget hotels at its service stations.
The plan, if pursued, would provide another revenue generation source for the company and the final decision and business model are expected to be unveiled in a year’s time.
Meanwhile, PTT has opened talks with leading hotel chains about the idea, with a decision expected later this year.
“The margin of the oil retailing business in Thailand is on a downward trend, so we have to focus more on non-oil business,” Auttapol said, as cited by Bangkok Post.
The idea isn’t exclusive to the Thai state-owned company. Oil retailer Susco Plc inked a deal in March with Thailand’s Erawan Group Plc to provide land near a petrol station in Rayong for the latter to build a budget hotel.
As they say, desperate times call for desperate measures. This aptly sums up the non-conventional schemes to generate revenue at Thailand’s largest oil company. What will it think of next?
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