• Total revenue for Q1 reached 4.785 billion baht, an increase of 65.5% compared to the same period last year (YoY), reflecting the implementation of the GROWTH-LED strategy to effectively generate cash flow growth.
  • The hotel and service business segment continues to grow across all sectors, with an average revenue per available room (RevPAR) of 4,152 baht, up 17% compared to the pre-COVID-19 period in 2019 and an increase of 15% compared to the previous quarter (QoQ).
  • The company is focused on continuously increasing operational assets through growth strategies, resulting in a total current operational asset value of 119.859 billion baht, an increase of 36.548 billion baht compared to 2019, representing a 43.9% growth.

Nawallapa Traisorat, CEO and Managing Director of Asset World Corp Public Company Limited (AWC), reported that the Q1 2023 financial results showed total revenue exceeding 4.785 billion baht, a remarkable increase of 65.5% compared to the same period last year (YoY). The company achieved an EBITDA of over 2.572 billion baht in Q1 2023, up 67.2% from the previous year, driven by strong and continuous growth in the hotel and service business across all segments. The average revenue per available room (RevPAR) reached 4,152 baht, which is 17% higher than in 2019 before the COVID-19 pandemic, particularly for hotels outside Bangkok and luxury resorts with outstanding occupancy rates, coinciding with the full reopening of the country. Additionally, the number of both Thai and foreign tourists utilizing the company’s various business segments has significantly increased, especially during the peak travel season such as the New Year festival, resulting in the company’s strong growth potential and a substantial increase in profits, with a net profit of 1.422 billion baht, up 100.5% compared to the same period last year and also higher than in 2019 before the pandemic.

AWC continues to focus on developing quality assets into operational assets to enhance profitability (EBITDA) consistently. In Q1 2023, the company had a total operational asset value of over 119.859 billion baht, an increase of 36.548 billion baht compared to 2019, representing a 43.9% growth. Furthermore, the company has plans to develop various projects to create strong medium-term cash flow and invest in assets under right of first refusal (ROFR) from the TCC Group, as well as other quality asset investment opportunities in the long term. With the continuous growth of quality asset size, the company is confident in its ability to generate substantial and stable cash flow.

“The strong performance of AWC in Q1 2023, which has grown significantly compared to Q4 2022 and before the COVID-19 pandemic in 2019, is a positive sign for the start of the year. This remarkable growth is a result of implementing the GROWTH-LED strategy through the development of quality assets into operational assets, with an increase in value of over 36.548 billion baht compared to before the COVID-19 situation, while also generating growing cash flow and accelerating the growth of return rates by developing assets to meet diverse customer needs. For instance, the performance of the hotel and service business segment has a Revenue Generation Index (RGI) overall higher than the average compared to similar hotels in the nearby area, such as Bangkok Marriott The Surawongse with an RGI of 201 and Courtyard by Marriott Phuket Town with an RGI of 195. The overall average revenue per available room (RevPAR) reached 4,152 baht, along with effective cost control, resulting in an operating profit margin (EBITDA MARGIN) of 45% for the group in Q1 2023, which is 14% stronger than in Q1 2022,”

Hotel and Service Business Segment

The company has shown strong continuous growth across all segments, especially in the luxury resort segment and other hotels outside Bangkok, which can access high-potential target customers (High-to-Luxury) in line with the full reopening measures. This has led to a significant increase in travel demand during the New Year festival, resulting in an average revenue per available room (RevPAR) of 4,152 baht, which is higher than the pre-COVID-19 period in 2019, which was 3,549 baht, an increase of 17%. In Q1 2023, the hotel business segment generated revenue of 2.743 billion baht, with an operating profit (EBITDA) of 1.091 billion baht, which has significantly increased compared to the same period last year (YoY) or an increase of 28.7% compared to the previous quarter (QoQ).

AWC is focused on developing quality assets into operational assets to continuously increase value, currently having a total of 5,588 rooms, a 63% increase compared to the pre-COVID-19 period. Additionally, this year, the company plans to enhance its quality portfolio in the hotel segment and rebrand hotels, including the INSIDE by Meliá Bangkok Sukhumvit and InterContinental Chiang Mai Mae Ping, as well as rebranding Le Méridien Chiang Mai to Marriott Chiang Mai. The company aims to increase the number of operational hotels from 20 in 2022 to 22 in 2023, totaling 6,036 rooms, which will enhance the company’s ability to meet the needs of tourists and target customers. Furthermore, the company collaborates with global partners to strengthen quality assets in the hotel and service business (Assets Enhancement), such as partnering with Accor to rebrand Grand Mercure Bangkok Windsor to Fairmont Bangkok Sukhumvit, the first in Thailand.

Commercial Real Estate Business Segment (Retail & Commercial)

The retail and wholesale real estate business segment has seen continuous growth in tenants, supported by increased consumer and tourist spending, particularly in shopping centers for tourism, resulting in revenue growth of over 114% compared to the same period last year.

Additionally, the company is focused on developing various projects to meet the diverse needs and lifestyles of consumers, such as the Asiatique The Riverfront destination through the “ALL DAY EVERYDAY HAPPINESS” experience, in collaboration with global partners to launch “Disney100 Village at Asiatique,” the opening of “The Kristall Grill House” and “The Siam Tea Room” to elevate Asiatique The Riverfront to become a global food and beverage destination, resulting in higher occupancy rates and rental rates in the Asiatique The Riverfront destination, with customer visits increasing by over 250% compared to the same period last year. Moreover, the company has launched THE PANTIP LIFESTYLE HUB in Chiang Mai under the concept “EVERY HAPPINESS FOR EVERYONE,” aiming to create a lifestyle landmark for families in the heart of Chiang Mai. In April, AWC collaborated with both public and private sector partners to drive Thailand as the “Food Wholesale Hub of the Region” by launching a new food wholesale model under the AEC FOOD WHOLESALE PRATUNAM project, which aims to provide a comprehensive food wholesale solution, connecting food wholesalers worldwide with buyers in the ASEAN economic zone.

For the office building business (Commercial), it continues to generate cash flow for the company from the demand for Grade A office space with complete amenities, responding to future trends that blend work and lifestyle. Additionally, it is a certified Green Building. In the past quarter, AWC launched “Co-Living Collective: Empower Future” at the “Empire” building for the first time, introducing over 1,500 square meters of Co-Living Space, the largest in Thailand, to create a special experience for tenants, addressing both work and lifestyle needs in one place.

“AWC continues to focus on profitability and effective cost control while continuously developing quality projects to create quality operational assets, strengthening the portfolio and always responding to the needs of the new generation of customers, in line with the government’s tourism promotion policy, which will help strengthen the organization sustainably according to the mission of ‘Creating a Better Future,’” Nawallapa concluded.

AWC is committed to conducting business according to its strategic plan for sustainable growth while creating value for all stakeholders. Recently, the company received awards reflecting its business potential and brand excellence, including the “Thailand’s Top Corporate Brands 2022” award as the organization with the highest corporate brand value in Thailand for 2022 in the real estate development category, organized by the Master’s program in Brand Management and Marketing at Chulalongkorn University in collaboration with the Stock Exchange of Thailand, and “Asia's Greatest Brand 2023,” a regional award in the service business category from the Edition of Asian Business & Social Forum - Asia’s Greatest Brands and Leaders 2023, organized by Asia One Magazine, a leading business magazine in India, to honor business leaders and brands that stand out in 2023.