Nawalanlapa Traisorat, Chief Executive Officer and Managing Director of Asset World Corp Public Company Limited (AWC), revealed the financial results for Q4 of 2022, showcasing the best quarterly performance of the year with a net profit according to financial statements of 1.438 billion baht, an increase of 30% compared to the same period last year (YoY). The total net profit for 2022 stands at 3.981 billion baht, a staggering increase of over 280% compared to the previous year (YoY). This growth is attributed to the strong performance of the hotel segment, which achieved the highest Average Daily Rate (ADR) in AWC's history, coinciding with the full reopening of the country in the second half of 2022. This demonstrates the organization's potential to generate cash flow from quality operating assets, coupled with continuous effective cost management, ready to support the country's robust economic growth.

“The financial results for Q4/2022 represent the company's best performance of the year, supported by the tourism sector's clear recovery during the high season and the full reopening of the country. This has led to a strong overall operational growth for the company, reflecting AWC's ability to effectively reach quality target customers, particularly in the hotel and service sectors, which have significantly grown since the COVID-19 outbreak in early 2020. Meanwhile, the retail and commercial real estate segment continues to generate strong cash flow for the company through the development and strategic adjustment of various projects to meet diverse customer needs, such as the 'Empire' building under the Co-Living Collective: Empower Future concept, and the Asiatique The Riverfront destination, which aims to create the largest riverside lifestyle tourism landmark through the 'ALL DAY EVERYDAY HAPPINESS' experience and entertainment activities in collaboration with The Walt Disney Company in 'DISNEY100 VILLAGE AT ASIATIQUE'. Additionally, the company reported a profit from the fair value of real estate in 2022 amounting to over 4.920 billion baht, indicating the continuous value increase of quality asset portfolios, surpassing the current inflation rate,” Nawalanlapa stated.

 

Hotel and Service Business Segment

The performance of the hotel and service business segment has seen a remarkable growth aligned with the full reopening measures, driven by the number of foreign independent tourists (FIT) visiting Thailand, totaling over 11.8 million in 2022. This group of high-spending quality tourists has resulted in overall operational growth across all segments, particularly in the MICE hotel segment, hotels in Bangkok, luxury resorts, and the food and beverage segment from various events, such as New Year celebrations. In Q4, the overall occupancy rate of AWC's hotels was 63.5%, with an average daily room rate (ADR) of 5,697 baht per night, an increase of over 45.7% compared to the same period last year (YoY), marking the highest level in the company's operational history.

Furthermore, in Q4/2022, the hotel and service segment generated operational revenue of 2.499 billion baht, with an operating profit (EBITDA) of over 848 million baht, a staggering increase of 11,535% compared to the same period last year, or a 71.9% increase compared to the previous quarter. The Revenue Generation Index (RGI) overall was higher than the average compared to hotels in the same vicinity, such as Bangkok Marriott The Surawongse with an RGI of 223.6, Banyan Tree Krabi with an RGI of 184.4, and Courtyard Marriott Phuket Town with an RGI of 176.8.

AWC remains committed to enhancing its quality portfolio in the hotel and service segment by investing in The Westin Siray Bay Resort & Spa in Phuket and Dusit D2 Chiang Mai hotels to leverage the potential and advantages of developing quality assets, strengthening competitive advantages, and enhancing operational asset portfolios to generate strong cash flow for the company as operational assets that can recognize income immediately. Additionally, the Grand Mercure Bangkok Windsor hotel is under development, resulting in a total of 20 operational hotels with 5,458 rooms by the end of 2022, reflecting continuous growth compared to 16 hotels and a total of 3,432 rooms in 2019.

Retail & Commercial Real Estate Business Segment

The office building business segment continues to generate increasing cash flow for the company since the beginning of 2022, with operational revenue increasing by 7.6% compared to the same period last year, driven by the potential of environmentally conscious Grade A office buildings and the use of various technologies for efficient space management. Additionally, AWC has set a new standard in the office building industry by providing 1,500 square meters as Co-Living space, offering a special experience at no cost to tenants to support the New Normal work style, helping to position Thailand as a destination for organizations and employees worldwide, and as the number one choice for the new generation workforce.

Overall, the retail real estate segment has also shown continuous growth across almost all segments, driven by the revival of economic activities, spending, and dining out during the year-end festival, particularly in community shopping malls, resulting in an 18% increase in revenue compared to the same period last year. Moreover, tourist-oriented shopping centers like Asiatique The Riverfront destination saw a revenue growth of 98% compared to the same period last year, driven by an increase in Thai customers and foreign tourists, along with strategic adjustments to attract tenants, meeting the diverse needs of all customer groups through various special activities throughout the year.

“AWC is committed to enhancing and empowering the country's tourism industry in response to the 'Thailand Tourism Year 2023' policy through experiential tourism, which is expected to see an increase in foreign tourists entering the country and Thai citizens traveling domestically. The company is therefore accelerating the strategy to convert assets under development into operational assets and create growth in operational asset returns to generate strong cash flow continuously for the company, alongside effective cost management without compromising service quality, such as increasing direct hotel booking rates, installing solar panels for clean and environmentally friendly energy, and efficiently managing personnel cost (HR Multiple) to create maximum value and returns for shareholders that will be passed through as EBITDA (Flow Through) at a ratio exceeding the set target. In 2023, AWC will continue to develop various projects across all business segments for opening services, such as the Innside Bangkok Sukhumvit hotel, InterContinental Chiang Mai Mae Ping hotel, and Marriott Chiang Mai hotel, as well as raising new standards for the office building segment and developing the Asiatique The Riverfront destination project to strengthen the organization sustainably,” Nawalanlapa added.

AWC is committed to conducting business according to a sustainable development strategy, with the ultimate goal of "creating long-term sustainable value for all stakeholders through a framework of three pillars (3BETTERs): Better Planet, Better People, Better Prosperity." Recently, AWC has been ranked in the S&P CSA Yearbook 2023 for the second consecutive year, selected as “Top 1% S&P Global ESG Score 2022” and awarded “Industry Mover” as a sustainable company in the hotel, resort, and cruise industry. This success reflects the commitment to conducting business according to sustainable development strategies under the mission of "creating a better future."