Regarding the 9M/60 performance of the "Hotel Group" TerraBKK Research, it has been observed that the revenue for 9M/60 is on an upward trend, with only 2 companies experiencing a decline: Dusit Thani (DTC), which saw a decrease of over 5.8% compared to the same period last year (9M/60 = 3,777 million baht, 9M/59 = 4,009 million baht). This decline is attributed to a drop in guests at Dusit Thani Hua Hin, renovations at Dusit Laguna Phuket and Dusit Thani Pattaya, and a decrease in revenue from catering services at Dusit Thani Bangkok. Additionally, Laguna Resort and Hotel (LRH) experienced a decline of over 8.9% compared to the same period last year (9M/60 = 3,343 million baht, 9M/59 = 3,668 million baht) due to the traditionally low tourist season in Phuket during the third quarter.


On the other hand, companies with relatively good performance TerraBKK Research found that 2 companies showed interesting performance with revenues in 9M/60 increasing by hundreds of millions baht compared to 9M/59: The Erawan Group (ERW) grew by 192 million baht from the previous year (9M/60 = 4,425 million baht, 9M/59 = 4,234 million baht), benefiting from its core hotel business as well as rental income and other services. In Q3/60, they also opened 3 new HOPINN hotels, 2 in Thailand and 1 in the Philippines. Meanwhile, Shangri-La Hotel (SHANG) grew by 101 million baht from the previous year (9M/60 = 1,788 million baht, 9M/59 = 1,687 million baht), driven by increased occupancy rates and conference catering services.

In terms of net profit, TerraBKK Research found that Central Plaza Hotel (CENTEL) stood out with a net profit of 1,549 million baht (9M/60), an increase of 116 million baht from the previous year (9M/59 = 1,434 million baht). This growth is attributed to more efficient loan management, which reduced interest expenses, and government investment promotion measures that allowed for greater tax savings. Additionally, The Erawan Group (ERW) saw a profit increase of 30.6% from the previous year (9M/60 = 344.4 million baht, 9M/59 = 263.8 million baht) in line with revenue growth.

For the key financial ratios for 9M/60, such as net profit margin, earnings per share, return on equity, return on assets, and debt to equity ratio, TerraBKK Research compiled the performance data of over 10 hotel companies for 9M/60, detailed as follows:

1. Earnings per Share (EPS)
Generally, TerraBKK Research found that this industry has earnings per share not exceeding 2 baht/share, with only 2 companies exceeding the average: OHTL at 5.77 baht per share and Shangri-La Hotel (SHANG) at 2.73 baht per share.

2. Net Profit Margin (NPM)
The average net profit margin for 9M/60 is between 2% - 9%. The top three companies with the highest net profit margins are Shangri-La Hotel (SHANG) at 19.87%, Royal Orchid Hotel (Thailand) (ROH) at 12.57%, and Central Plaza Hotel (CENTEL) at 10.29%.


3. Return on Equity (ROE)
The average ROE for 9M/60 is between 1.5% - 12%. The top three companies with the highest return on equity are OHTL at 19.9%, Central Plaza Hotel (CENTEL) at 18.62%, and Royal Orchid Hotel (Thailand) (ROH) at 13.96%, reflecting their ability to manage operations effectively to provide returns to shareholders.


4. Return on Assets (ROA)
The average ROA for 9M/60 is between 2.5% - 9.5%. The top three companies with the highest return on assets are Royal Orchid Hotel (Thailand) (ROH) at 13.46%, Central Plaza Hotel (CENTEL) at 11.03%, and OHTL at 10.04%, indicating the companies' efficiency in utilizing assets for returns.

5. Debt to Equity (D/E)
The average D/E ratio for 9M/60 in the hotel group remains healthy, as the overall ratio is below 2. Only 2 companies slightly exceed this threshold: Grand Asset Hotels and Properties (GRAND) at 2.29 and The Erawan Group (ERW) at 2.03.


TerraBKK Research concludes the 9M/60 performance of the "Hotel Group" by stating that Central Plaza Hotel (CENTEL) achieved the highest revenue of 15 billion baht with the highest net profit of 1.55 billion baht. Meanwhile, OHTL reported an earnings per share (EPS) of 5.77 baht per share with a ROE of 19.9%, the highest in the group, while the best ROA was from Royal Orchid Hotel (Thailand) (ROH) at 13.46%. Overall, this group has managed its capital structure well, with a D/E ratio below 2, with only 2 companies slightly exceeding this threshold: Grand Asset Hotels and Properties (GRAND) at 2.29 and The Erawan Group (ERW) at 2.03. ---TerraBKK

Article by: TerraBKK Investment Tips
TerraBKK: Find great homes, value for money, and affordable prices