Veranda Resort Public Company Limited or VRANDA has announced its Q2/2022 performance, achieving total revenue of 323.9 million baht, a 269% growth compared to the same period last year, and a net profit of 1.7 million baht. The hotel and resort business showed strong growth with an average occupancy rate of 51%, up from 16% in the same period last year. Following the full reopening of the country, the Thai tourism industry is buzzing with confidence that the tourism situation in Thailand has passed its lowest point. The weakening baht is encouraging foreign tourists, and the strategy for the second half of the year focuses on attracting international tourists during the high season to ensure continuous revenue growth, alongside the launch of two new projects, with confidence that the entire year will see a turnaround as targeted.

Mr. Veerawat Ongwasit, CEO of Veranda Resort Public Company Limited (VRANDA), a leader in the hotel, resort, and real estate development business, revealed that the company's performance in Q2/2022 recorded total revenue of 323.9 million baht, a 6% increase compared to the same period last year and a 3% increase from the previous quarter. The EBITDA was 71.6 million baht, growing 145% year-on-year and up 54% from the previous quarter, with a net profit of 1.7 million baht, marking a significant recovery from the lowest point during the COVID-19 pandemic.

The hotel and resort business under the Veranda brand showed remarkable recovery in Q2/2022, generating revenue of 225.5 million baht, a 268% increase compared to the same period last year and a 50% increase from the previous quarter, accounting for 80% of pre-COVID levels (Q2/2019). In Q2/2022, the average occupancy rate was 51%, up from 16% in the same period last year, driven by strong demand from domestic tourists seeking relaxation during long holidays and international tourists benefiting from relaxed travel measures to Thailand, positively impacting hotels such as So Bangkok and Veranda Collection Samui – Rocky Resort, which primarily cater to foreign tourists.

The strong growth factors stem from the relaxation of travel measures to Thailand since April. The company has implemented a marketing strategy that leverages the unique strengths of its hotels and resorts, promoting its portfolio and food and beverage business to become top-of-mind brands among customers, supporting the continuous recovery of occupancy rates for both Thai and foreign tourists. Positive signals indicate a recovery trend in the tourism industry for the remaining half of the year, driven by policies to stimulate tourism through increased flights and seating capacity on domestic and international routes, along with the weakening baht, which will further encourage foreign tourists to visit Thailand during the high season in the fourth quarter of this year.

Regarding its financial position, VRANDA's debt-to-equity ratio decreased to 1.23 times as of the end of June 2022, down from 1.25 times at the end of 2021, due to net loan repayments. This ratio remains below the covenant threshold of 2 times.

For the business plan in the second half of the year, the company aims to enhance its hotel and resort marketing strategy, focusing on increasing the number of international tourists to drive continuous revenue growth. The goal is to bring both Thai and foreign tourist occupancy rates back to levels close to those before the COVID-19 pandemic, targeting an average occupancy rate of 60% for the remaining half of the year. The company will also reinforce its position as a lifestyle business leader with plans to invest in two new projects: 1. Veranda Pool Villa Hua Hin – Cha Am, a luxury vacation home in a prime location in Cha Am-Hua Hin, featuring a Rooftop Private Pool for privacy; 2. Veranda Resort Phuket, near Cape Panwa, covering 20 rai, ensuring a bright business outlook for the second half of the year.