Commercial Business Performance Highlights with Record New Leasing

  • The financial results for Q2 2024 show impressive operational profit (EBITDA) of 2.493 billion baht, up 12%, and a net profit of 1.246 billion baht, also up 12% compared to the same period last year (YoY). This growth is driven by the strong performance of the hotel business, which has improved across all segments, with total asset value soaring by 64% compared to pre-COVID levels.
  • The hotel business has generated cash flow with a remarkable growth of 24% compared to the same period last year and a 63% increase compared to pre-COVID-19 levels. The average revenue per available room (RevPAR) grew by 11%, significantly outperforming the market by 175%, with the RGI Index for hotels in the portfolio at 114 (compared to the same hotels in 2023).
  • The commercial real estate sector continues to thrive despite high competition, achieving a record new leasing area of over 16,000 square meters (over the past 12 months) by incorporating the Co-Living concept into AWC's office buildings, along with the launch of the global food destination project “Phenix” to create quality operational assets that align with the company's cash flow growth strategy.
  • AWC is preparing to enhance tourism in the second half of the year with the opening of the EA Rooftop at The Empire and the world's first luxury teppanyaki and kaiseki cruise ship, “Okura Cruise,” to support Thailand as a global sustainable tourism destination.

August 14, 2024, Bangkok, Thailand – Nawallapa Traisorat, CEO and Managing Director of Asset World Corp Public Company Limited (AWC), announced the financial results for Q2 2024, reporting total revenue of 4.839 billion baht and EBITDA of 2.493 billion baht, up 12%, with a net profit of 1.246 billion baht, also up 12% YoY. The hotel and service business continues to generate strong operational profit (Hotel EBITDA) of 823 million baht, growing 24% YoY and 63% compared to pre-COVID-19 levels, driven by the impressive performance of the hotel business across all segments, with an average daily rate (ADR) of 5,409 baht per night and RevPAR growth of 11% YoY (compared to the same hotels in 2023), outperforming the market in all segments by 175%. Meanwhile, the commercial real estate sector continues to grow despite high market competition, achieving a record new leasing area of over 16,000 square meters (over the past 12 months) with a unique Co-Living Collective strategy: Empower Future, creating a Work Place Destination. The operating assets now account for 77% of total assets, increasing the value of operating assets in Q2 to over 145 billion baht, enhancing cash flow generation capabilities, resulting in a total asset value of 179.284 billion baht, up over 64% compared to pre-COVID-19 levels in 2019. AWC is also strengthening its portfolio with quality projects supporting its position as a Lifestyle Destination, such as the “Phenix” project, a global food destination, the “The Pantip Lifestyle Hub” in the heart of Chiang Mai, and “Teeshot Bar” at Bangkok Marriott Marquis Queen's Park, enhancing the Lifestyle MICE model and supporting the growth of the MICE segment robustly, while transitioning from the ramp-up phase to normal operations (BAU).

Outstanding Performance Leading to AWC's Success in Q2 2024

With a growth-led strategy, AWC currently has a total of 6,029 rooms, a 76% increase compared to pre-COVID-19 levels. In Q2 2024, AWC has consistently generated increased operational performance and business value even during the off-peak tourism season, with strong growth in the hotel and service business, particularly in the MICE segment, which excelled this quarter due to its ability to meet rising market demand. The strategy to attract FIT tourists has resulted in 76% of room bookings, representing a high-spending demographic that prefers independent travel, aligning with current tourism trends. AWC's hotel and service business generated revenue of 2.597 billion baht, up 14% YoY, with a hotel occupancy rate of 66.4% and an ADR of 5,409 baht per night. Hotels across all sectors continue to perform strongly, reflecting the growth in tourist numbers, with advance bookings for the second half of this year increasing by 54% compared to the same period last year (YoY). AWC's portfolio hotels lead the market, as reflected by the Revenue Generation Index (RGI) being above average compared to similar hotels in the vicinity at 114 (compared to the same hotels in 2023), with standout hotels such as Courtyard by Marriott Phuket Town with an RGI of 202, Bangkok Marriott The Surawongse with an RGI of 177, Chiang Mai Marriott Hotel with an RGI of 168, and Le Méridien Bangkok with an RGI of 151, showcasing AWC's commitment to developing world-class projects and aiming for top rankings in the direct market to strengthen sustainable tourism.

The commercial real estate sector continues to show increasing performance and value. AWC is advancing its marketing strategies for all properties to meet customer and tenant demands, aiming to become a leading Lifestyle Destination, including promotional activities to enhance marketing vibrancy in collaboration with partner networks, catering to the modern lifestyle of customers while welcoming tourists from around the world to drive Thailand towards a sustainable tourism destination. The office building sector achieved a record new leasing area of over 16,000 square meters (over the past 12 months) with a unique Co-Living Collective strategy: Empower Future, creating a Work Place Destination. The financial results for the commercial real estate sector show revenue of 2.481 billion baht, up 14%, and operational profit (EBITDA) of 2.179 billion baht, up 26% YoY.

AWC Grows Operating Assets While Collaborating with Partners to Drive Performance Growth and Enhance Tourism in the Second Half of the Year

AWC is continuously developing its assets according to the growth-led strategy by accelerating the development of assets under development into operating assets, while also diversifying and strengthening the portfolio across all business segments. This includes enhancing the potential of assets during the ramp-up phase to normal operations (BAU) to increase cash flow generation capabilities, particularly by advancing marketing strategies for all properties within the shopping center and wholesale business to become lifestyle destinations that meet diverse needs. In Q2, AWC launched quality projects such as “The Pantip Lifestyle Hub” in the heart of Chiang Mai, a hub for shopping, relaxation, dining, and creating lifestyle experiences through various shops and services. It is also part of the “Lanna-Tique Destination” project, a quality real estate initiative aimed at creating a leading global cultural and lifestyle tourism destination in Chiang Mai, along with “Teeshot Bar,” the first simulator sports bar in a hotel at Bangkok Marriott Marquis Queen's Park, and the “Phenix” project, valued at over 10 billion baht, aimed at becoming a global food destination that gathers culinary delights in the heart of the strategic Pratunam area through a new business model that connects food producers and suppliers through offline and online channels, supporting Thailand as a leading global food destination.

Additionally, AWC is moving forward to enhance the vibrancy of the tourism industry in the country during the second half of the year in collaboration with leading partner networks to cater to diverse tourism lifestyles while welcoming tourists from around the world to support Thailand as a global sustainable tourism destination. AWC is preparing to open EA Rooftop at The Empire in September, having welcomed executives from Nobu Hospitality, including Chef Nobu Matsuhisa, Hollywood actor Mr. Robert De Niro, and Mr. Meir Teper at EA Rooftop at The Empire, in preparation for the opening of ‘Nobu Bangkok,’ the highest Nobu restaurant in the world in the heart of Bangkok, which will enhance the strength and diversity of culinary experience offerings in the ‘Empire’ building, making it a perfect destination for work and lifestyle. AWC is also collaborating with leading global hotel partners like Hotel Okura, a luxury hotel chain from Japan known for blending traditional Japanese beauty with top-notch accommodation and service, to create ‘Okura Cruise,’ the world’s first luxury teppanyaki and kaiseki fine dining cruise ship, set to launch at the Asia Tique The Riverfront destination, providing an impressive experience on the Chao Phraya River by the end of this year, further strengthening and supporting Thailand as a leading global sustainable tourism destination in terms of culinary and leisure experiences. AWC is also preparing to create a new phenomenon of fun at the Asia Tique The Riverfront destination through collaborations with global partners to bring world-class special experiences to the project, with AWC set to announce the details of this collaboration officially soon, along with continuing the idea of bringing special experiences to other future AWC Destination projects.

AWC is committed to conducting business according to a sustainable growth strategy to create long-term value for all stakeholders throughout the value chain, with responsibility towards the economy, society, environment, and the nation, to drive Thailand towards becoming a global sustainable tourism destination in line with its mission to “Create a Better Future.”