CHIANG RAI — Budget hotels are vying hard for guests, and higher living costs affect travel choices. Price certainty now matters more than ever. One Budget Hotel, operated by KS Group Residence Co., Ltd., has chosen that insight as its point of difference.
The brand backs a Fixed Rate, one price all year, and has announced its latest property, One Budget Chiang Rai, Mae Sai branch, at Thailand’s northern border. The plan is to reach 10 branches in Chiang Rai by 2025, while expanding across secondary cities nationwide.
Leaders at the company say “cheap and good” is more than a line. It is a promise to guests who want clean, safe rooms with the basics that matter, and a price that does not spike with the seasons. That stance has helped several branches achieve an average occupancy above 90 percent. It started with the first opening in 2020 during COVID-19, and continues as the brand scales up.
From Dorms to a Hotel Network: The Cost-Control Playbook
The story behind the Mae Sai launch goes back to humble roots. KS Group Residence began with dormitories and shop-houses for rent. It then applied its strengths in asset management and preventive maintenance to an asset-light budget hotel model. The focus is strict cost discipline across the chain, from site selection and standard room design to in-house laundry and centralized purchasing. The goal is to keep the variable cost per room as low as possible.
During COVID-19, when many firms stumbled, One Budget spread risk. Some dorms were converted into ASQ facilities, and staff were retained. The company kept at least one year of cash reserves as a buffer. When demand returned in secondary cities and business hubs, the brand gained traction fast. Repeat stays and word of mouth grew, helped by user reviews on social platforms.
The year-round Fixed Rate, trading margin for top-of-mind recall
Fixed Rate sits at the core. Many branches start at 550 baht per night, and in some main-city sites, it is 600 baht. Prices do not move in long weekends, high season or big festivals. The offer is simple, which makes it memorable. When travellers think budget stays, One Budget equals the same price.
- Strategic reasons: stable pricing builds certainty and helps convert bookings when other hotels raise rates in peak periods.
- Premium example: the Chiang Saen branch trials a riverfront model, with River View rooms at 850 baht per night and Deluxe River View at about 1,400 baht. It targets guests who want a better experience, while remaining value-led for its area.
Rather than chase the highest ADR, the brand chooses a tougher brief. Keep occupancy high and steady, and sharpen operations. Standardized rooms, daily upkeep and careful utilities management all help stabilize cash flow at a lower price point. Management has hard-wired this discipline into daily routines.
One Budget Hotel, from the airport and campuses to the Golden Triangle and Mae Sai
One Budget Hotel’s expansion began with Chiang Rai as the base, then grew into steady-demand areas. These include sites near the airport, universities, sports venues and border tourism such as Chiang Saen and the Golden Triangle. Mae Sai is the latest, backed by both tourism and cross-border trade.
- Chiang Rai stronghold: the brand is on track for 10 branches in the province by 2025. The aim is a dense network that serves varied needs, from business travellers and sales teams to international visitors, tour groups and public sector stays.
- Other secondary cities: projects are underway in Phayao, Lampang, Nan, Phrae, Suphanburi, Phitsanulok, Mae Sot (Tak), Pattaya (Chonburi) and Bangkok. The network totals 19 branches open or under construction, targeting a large gap in the low-cost segment.
Good locations combine with practical features. Ample parking, secure keycard access, free Wi‑Fi, strong hot showers and morning drinks are standard. Some branches add a fitness room or meeting space. The model suits guests on a mission, such as government units, budget-aware tourists and people travelling for work.
Financial and operating structure, discipline as a breakwater
Although the company does not publish financials, leadership says the business came through the crisis with cash reserves and the right credit tools. Krungthai Bank supports the growth with long-term loans and overdraft lines for land purchases and new builds. Cost control stays tight with in-house laundry, pooled procurement and strict maintenance schedules. Rooms with issues are taken out of service and fixed at once, rather than deferring problems into costly renovations.
This approach reflects disciplined entrepreneurship, not a chase for short-term optics. With fixed pricing and high occupancy, cash flow is smooth enough to ride low and high seasons and to cover interest costs. That matters in budget hospitality when the economy is volatile.
Low-cost demand is growing, driven by secondary cities and local trips
Macro conditions support One Budget’s plan. Secondary cities and local destinations have picked up as regional events and economies recover. Value now means something more concrete to travellers after Covid. Budget brands that guarantee cleanliness, safety, parking and reliable internet, and a price that is kind to the wallet, rise to the top of the list.
In the North, the Den Chai–Chiang Rai–Chiang Khong double-track railway, slated to open in 2028, will improve access to border areas. It will also boost multi-city travel between provinces. Budget hotel operators with networks in place are wwell-positionedfor for this next wave.
Challenges ahead: finance, labour, brand standards and similar names in some areas.
One Budget Hotel Growth is strong, but there are clear hurdles.
- Finance and interest costs. A rollout funded by new sites needs strict financial discipline. The business must convert scale into real savings to offset cost pressure.
- Service labour. Budget hotels use lean staffing per room. As openings speed up, standards in housekeeping, maintenance, front office and security must stay consistent. Training systems, playbooks and strong QA are worth the investment.
- Brand standards across many branches. Fast growth raises the risk of uneven quality, particularly where franchise or partner models rely on local investors to build assets. A clear SLA and brand standard are needed so weak links do not pull down the whole brand.
- Name confusion. Some operators use trade names that sound similar in areas outside Chiang Rai. This can hurt brand perception if quality and messaging drift. Clear marks, domains and official channels that state One Budget Hotel under KS Group Residence (Chiang Rai) will reduce confusion.
Management insights from the field
The leadership team has distilled a few rules of thumb that guide daily work.
- Sweat the details. Stay close to frontline issues, listen to staff, a fix fast so small problems do not spread.
- Own a clear identity. Make the product truly good, and customers will speak for you.
- Maintenance is routine, not an event. Follow tight schedules, such as cleaning air-con units every 2 to 3 months, and close rooms for repair at once when faults appear.
- Fit the location. If nearby rivals serve a full breakfast, add it to protect value without breaking the price model.
On pricing, management says the base rate moved from 500 to 550 baht per night late last year. Interest and utilities rose, so the change was needed. The core Fixed Rate stays, to protect memory and loyalty. Most guests understood and accepted the change, as the price still feels fair against local options.
Mae Sai, more than a new address, is a test of border strength.
Mae Sai is more than one pin on the map. It is a strategic test in a border town with mixed demand. Day-trip tourists, cross-border traders, public agencies and festival or merit groups all come through. A certain price, paired with the right features, such as wide parking, two-layer keycard security and fast Wi‑Fi, will show whether One Budget’s cheap and good promise fits real border demand.
If Mae Sai gains traction like Chiang Saen, the airport area and inner-city commercial zones, the 10-branch target for Chiang Rai by 2025 becomes more than a nice number. It turns into a foundation for wider growth across secondary cities nationwide, and it opens a path to a future listing when governance is ready.
Business highlights
- Positioning: budget hotel, 2 to 3 stars, focused on cheap and good
- Pricing: Fixed Rate all year, many branches from 550 baht per night, some main-city sites at 600 baht
- Product: king 6 ft or twin 3 ft beds, strong air-con, hot showers with good pressure, free Wi‑Fi, two-layer keycard, parking, morning drinks, some sites add a gym or meeting room
- Premium trial: Chiang Saen, River View at 850 baht, Deluxe River View about 1,400 baht
- Occupancy: Several branches average over 90 percent, according to management
- Network: 19 branches open or in build nationwide, with a target of 10 in Chiang Rai by 2025
- Finance: backed by Krungthai Bank with long-term loans and O/D, supported by cash reserves and cost control
- Risk control: preventive maintenance, strict QA, brand standards, and clear brand marks to avoid name confusion
Predictable pricing plus operational discipline, a long-curve formula for budget stays
Travellers look harder for value today. One Budget Hotel shows that a Fixed Rate can build trust that leads to repeat stays and word of mouth. Tie that to disciplined operations, an asset-light approach and firm cash control, and you have a budget player built for the long curve, not a short sprint.
The road to a national network and the capital markets will need brand governance and steady service standards in every branch. With some operators using similar names, the Chiang Rai group must keep messaging clear under KS Group Residence, and audit a measurable brand standard. That protects reputation and raises quality across the chain.
Mae Sai is a key proof point. If the site follows the Chiang Rai playbook, other secondary cities now under construction should follow. When the double-track railway opens in 2028, the network already in place can capture the lift in demand. Cheap and good then becomes more than a slogan. It is an investment strategy based on how people travel and the discipline to run tight operations.
Leadership quotes and views (from public statements)
- Khun Panisa Kongam, Executive Director, KS Group Residence Co., Ltd.
“We keep prices fixed so guests decide with ease, any date means the same price. During festivals rooms sell out early, as others raise rates while we stay true to cheap and good. We make up the difference through efficiency, from maintenance schedules to system-level cost control.” - Risk approach
“In Covid, we avoided lay-offs, used cash reserves, converted dorms to ASQ, and cut rates for a time so more guests tried the product. Today, even with higher interest costs, we hold Fixed Rate as our core for long-term trust.”
