Veranda Resort Public Company Limited, or VRANDA, has announced its first half 2023 earnings, reporting total revenue of 698 million baht. The company is optimistic about its performance in the second half of the year, citing a positive growth trend in the tourism market, with an expected total of 25 million tourists visiting Thailand this year. The hotel business is projected to grow by 20% annually, while the real estate development sector is set to transfer the new project “Veranda Pool Villa Hua Hin-Cha Am,” valued at over 300 million baht, contributing to more than 100 million baht in real estate revenue in the second half.

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 overall performance for the first half of 2023 saw total revenue of 698 million baht, which slowed down due to the seasonal nature of the tourism market in the second quarter. Additionally, the real estate development business had limited units ready for ownership transfer, with over 90% of the Veranda Residence Hua Hin project already transferred, leaving less than 10% pending. However, the restaurant and beverage business has adjusted its management strategy, reducing the number of branches and costs by utilizing Cloud Kitchen to enhance product distribution efficiency.

Overall, the tourism market in the first half of 2023 has shown a strong recovery compared to the previous year, with an increase in foreign tourists visiting Thailand, primarily from Asian countries such as Malaysia, India, Singapore, and South Korea. Meanwhile, tourists from China and Europe, which were major markets before COVID-19, are expected to see only a slight increase from 2022 due to China's strict COVID-19 control policies and signs of economic recession in Europe affecting travel spending.

In the hotel business, VRANDA reported an EBITDA of 164 million baht for the first half of 2023, an 83% increase from the same period last year, driven by a 21% rise in average occupancy rates, reflecting a recovery in tourist numbers, particularly benefiting hotels in Bangkok and Samui from the return of international tourists post-COVID.

Looking ahead to the second half of 2023, the hotel and resort business is expected to perform well due to clear economic recovery factors and Thailand's appeal as a global tourist destination. Bangkok was ranked by Travelness as the number one city for foreign visitors in 2022-2023, with 22.78 million arrivals. According to the Ministry of Tourism and Sports, the tourism sector generated 1.08 trillion baht in revenue from both Thai and foreign tourists in the first seven months of 2023, with expectations of total tourism revenue reaching approximately 2.38 trillion baht from 25 million tourists.

For the second half of 2023, VRANDA will continuously adjust its marketing strategies, analyzing current tourism market trends and tourist demands to plan appropriate campaigns and promotions to attract visitors. The company is also enhancing its products and services to meet the needs of target customers, such as upgrading rooms at the Veranda Resort and Villa Hua Hin-Cha Am to ensure modern comfort and a memorable experience for guests. Marketing plans will target specific customer groups through online and offline advertising, social media communication, and various promotional activities. Additionally, technology will be leveraged to improve service efficiency and guest experiences, including the development of a convenient room voucher purchasing innovation to simplify usage. In the real estate development sector, the transfer of the Veranda Pool Villa Hua Hin-Cha Am project is expected to be completed in the fourth quarter of this year.

Regarding the progress of the Marriott hotel project under the brand “Veranda Resort Phuket Autograph Collection,” construction is ongoing and expected to be completed in the fourth quarter of 2024. For real estate development for sale, a pre-sale of the “Veranda Luxury Villas & Suite” project is planned for early Q4 2023, aiming to recognize revenue by late 2024.

“We are confident in Thailand's tourism market and the hotel and resort business in the second half of 2023, as we have passed the lowest point in Q2. Additionally, VRANDA's real estate development in Q4 2023 will see the transfer of the “Veranda Pool Villa Hua Hin-Cha Am” project, which is expected to generate over 100 million baht in real estate revenue in the second half,” the CEO stated.