The exterior of Escape Khao Yai by Sansiri, which will see its room rates rise by 10-15% next year.

The Escape Sansiri Hotel Collection expects to raise the room rates at its hotels in Hua Hin and Khao Yai next year.

The hotel arm of SET-listed developer Sansiri Plc (SIRI) is optimistic about the overall hotel business outlook, and major hotels at both resort destinations will see rates rise by at least 5% next year.

After introducing the Escape hotel brand two years ago, word of mouth and the right business strategy have raised the profile of the hotels among travellers.

Their revenue will grow significantly this year.

Senior executive vice-president Uthai Uthaisangsuk said hotel revenue would grow by 10-15% next year thanks to the expansion of function rooms at Escape Khao Yai and Escape Hua Hin.

The serious focus on the meetings and incentives market will help the hotels outperform and raise their room rates more than other hotels in the same locations.

In the first nine months of this year, both hotels exceeded their revenue targets.

Escape Hua Hin generated 16.8 million baht in revenue, 17% higher than projected, while Escape Khao Yai took in 27.8 million, 26% above target.

In Khao Yai, the capacity of function rooms increased to 150 guests, up from 100, while the Hua Hin hotel serves small events for 10-20 guests.

Mr Uthai said the expansion of function rooms would help to boost accommodation and food and beverage (F&B) revenue.

The meetings and incentives market also helps to fill vacancies on weekdays.

Sansiri is confident the average occupancy rate during weekdays will increase by 10-15% in 2016, up from the current average of 25-30%.

It also expects the revenue contribution of F&B and accommodation at the Khao Yai hotel will change to 50:50 from 40:60 at present.

At Hua Hin, the revenue contribution will change to 35:65 next year from 24:76.

Mr Uthai said the goal of the hotels was to serve its main property business of condominium and single-house projects.

Escape Khao Yai is a good example -- the company decided on the location of the 23-Degree Condo Khaoyai by Sansiri after launching the Escape Khao Yai.

The hotel's F&B also serves demand from project residents.

In Hua Hin, Sansiri has 16 projects with 3,000 units combined.

"The potential to open more hotels in the future depends on business opportunities, which rely mostly on the core property business," Mr Uthai said.

SIRI shares closed yesterday on the SET at 1.61 baht, down two satang, in trade worth 48.6 million baht.