Q1/62 Hotel Group Performance

Jun 07, 2019 | view 25,833

Q1/62 Hotel Group Performance

The performance of the hotel sector in the first quarter of 2019 has been adversely affected. Many hotel operators cited a significant decline in revenue due to the contraction of the tourism industry, particularly with a decrease in foreign tourists, such as from China.

TerraBKK Research summarized the performance of 10 public companies in the stock market, reflecting the state of the hotel and tourism business in Thailand as follows:

CENTEL - Central Plaza Hotel Public Company Limited is the only company in the hotel group that generated revenue exceeding 2,000 million baht in the first quarter, resulting in the highest total revenue and net profit in the group at 5,751 million baht and 825 million baht, respectively. Although total revenue decreased by approximately 98.3 million baht compared to the same quarter last year, this was due to a decline in hotel business revenue. Currently, the revenue ratio of the hotel business to the food business stands at 49:51.

ERW - The Erawan Group Public Company Limited reported total revenue of 1,758 million baht, a slight decrease of about 1% from the same period last year. The main reason was a decline in hotel business revenue, which is the company's primary income source, due to the slowdown in the tourism industry. Provincial areas experienced a greater drop in average room revenue compared to Bangkok due to the decrease in foreign tourists, while hotels abroad, such as Hop INN in the Philippines, saw the highest growth in average room revenue.

DTC - Dusit Thani Public Company Limited reported first-quarter results with total revenue of 1,425 million baht, a decline of over 16.1% from the same period last year, primarily due to the closure of Dusit Thani Bangkok. The net profit was 1 million baht, down over 99.6% from the same period last year, as the previous year included special items unrelated to regular business, such as the sale of investments worth 169 million baht, along with the closure of Dusit Bangkok, which reduced profits by 60 million baht.

LRH - Laguna Resorts and Hotels Public Company Limited not only operates hotels but also engages in real estate development. Its subsidiaries are involved in golf courses, retail businesses, office space leasing, and resorts. Total revenue for the first quarter of 2019 decreased by 205 million baht from the same period last year due to a drop in occupancy rates at Laguna Phuket and Banyan Tree Bangkok, along with reduced revenue from other businesses.

GRAND - Grand Asset Hotels and Property Public Company Limited currently operates hotels such as The Westin Grande Sukhumvit, Sheraton Hua Hin Resort and Spa, Sheraton Hua Hin Pranburi Villas, Royal Orchid Sheraton, and Hyatt Regency Bangkok Sukhumvit. Total revenue for the first quarter of 2019 increased by 384 million baht due to the acquisition of Royal Orchid Hotels (Thailand) Public Company Limited in April 2018.

SHANG - Shangri-La Hotel Public Company Limited generated total revenue of 763 million baht, a slight decrease of about 20 million baht from the same period last year. The net profit was 235 million baht, down about 22 million baht as well, while the net profit margin remained similar to the same period last year at 30.9% and 32.92%, respectively.

OHTL - OHTL Public Company Limited reported total revenue for the first quarter of 2019 decreased by 158 million baht, approximately 23% from the same period last year, due to renovations of 338 guest rooms in the River building. The net profit decreased by 154 million baht.

ASIA - Asia Hotel Public Company Limited reported total revenue of 363.5 million baht, with hotel business revenue of 213 million baht, divided into domestic hotel revenue of 198 million baht and international hotel revenue of 15.3 million baht. The company currently operates 7 hotels, including Asia Hotel Ratchathewi, Asia Hotel Pattaya, Asia Airport Hotel Rangsit, Asia Hotel Cha-am, Rajaphruek Lanna Boutique Chiang Mai, Darley Hotel Chiang Mai, and Quality Inn Long Beach Airport in California.

ROH - Royal Orchid Hotels (Thailand) Public Company Limited reported total revenue of 267 million baht, a slight decrease of 1.9 million baht from the same period last year. The decline was primarily due to reduced revenue from room rates, occupancy rates, international conferences, and MICE (Meetings, Incentives, Conventions, and Exhibitions) business compared to the previous year.

MANRIN - Mandarin Hotel Public Company Limited reported revenue of 96 million baht, a slight increase from the same period last year, resulting in a net profit of 14.7 million baht, also an increase from the previous year. The net profit margin for the first quarter of 2019 was 15.3%, up from 14.5% in the same period last year. --- TerraBKK