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HomeHotels & LodgingCentral Plaza Public Company Ltd: In 2022, the hotel business achieved total revenues of Baht 6,541m.
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Central Plaza Public Company Ltd: In 2022, the hotel business achieved total revenues of Baht 6,541m.

The hotels in Thailand will continue the recovery driven by an increase in international tourist arrivals and partially a growth from a low base in 1H2022.

In Q4/2022, CENTEL turned around to the highest fourth quarter Net Profit of Baht 498 million, as a result of reopening countries, entering the high season, and the festive season. Khun Gun Srisompong, CFO & VP of Finance and Administration of Central Plaza Hotel Public Company Limited stated that the operating performance of the company in Q4/2022 achieved total revenues of Baht 5,502 million, an increase of 47%. An Earning before Interest, Tax, Depreciation, and Amortization (EBITDA) was Baht 1,531 million, an increase of 57% from Q4/2022. An EBITDA Margin of 28% was an increase compared to last year due to a significant recovery of the hotel business YoY, particularly the outstanding performance of hotels in key tourist destinations. The company had a Net profit of Baht 498 million with a growth of 228% YoY.

In 2022, the company achieved Total Revenues of Baht 18,216 million, an increase of 57, and an Earning before Interest, Tax, Depreciation, and AmortizationEBITDAof Baht4,411million, an increase of 120 YoY.A Net profit was of Baht 398 million or a growth of 123% (compared to a Net loss of 1,734 million last year).

For the performance in 2023, although, recovery trends in the hospitality industry were unclouded including a positive factor from Chinese traveling earlier than expected, monitoring and cost management are crucial including food materials cost, energy, wage hike, and a rise in commercial banks’ interest rate. However, the company has plans to mitigate the impact of cost-push inflation such as continually negotiating with suppliers, finding alternative sources for raw materials, installation of solar panels and saving energy devices to decrease energy cost, new manning plan, and principal prepayment of loan in USD to reduce the impact of interest rate hike.

The business growth for this year will drive by the hotel and food businesses. The hotels in Thailand will continue the recovery driven by an increase in international tourist arrivals and partially a growth from a low base in 1H2022. The five-star and Centara Reserve brands in Bangkok and key tourist destinations will be key growth drivers. For hotels in the Maldives, the performance is expected to improve compared to the last year because of adjustment to marketing strategy in accordance with the current situation. Additionally in 2023, the revenue growth will come from the new owned hotel (inorganic growth). The company will recognize the operating performance from operation of Centara Grand Hotel Osaka since July 1, 2023. Overall, Expected Average Occupancy rate (Included Joint Ventures) is 65% – 72%, and RevPar improves by 30% – 37% YoY to Baht 3,250 – 3,400. The growth of RevPar will come from increases in both occupancy and average room rate, particularly from the average room rate of the overseas hotels in Dubai and Japan, where ARR is normally higher than ARR of Thailand portfolio.

Apart from driving the business growth as targeted, the company also pays attention to environmentally and socially issues. The company announced a commitment to be a Net Zero of greenhouse gas emissions (Net Zero 2050) by 2050. For the first 10 years, the long term plan 2020-2029 is to reduce 20% in greenhouse gas emissions by 2029 through effective management in energy and water usage, and waste management.

Q4/2022 Performance

Hotel Business: Overall, the RevPar increased by 107% YoY to Baht 3,473, as a result of the Occupancy Rate (OCC) increasing from 33% in Q4/2021 to 68% in Q4/2022. While the Average Room Rate (ARR) was stable at Baht 5,091.

In Q4/2022, The hotel business achieved total revenues of Baht 2,363 million, an increase of Baht of 117% YoY. A Gross Profit was Baht 1,314 million, an increase of 121% YoY. An EBITDA was Baht 899 million with an % EBITDA margin of 38%, which increased YoY (Q4/2021: 27%). The hotel business had a Net profit of Baht 359 million compared to a net Loss of Baht 31 million in the same period last year, or an improvement of 1,258%.

2022 Performance: Hotel Business: Occupancy Rate (OCC) increased from 19% to 52%, and the Average Room Rate (ARR) improved by 7% YoY to Baht 4,791 which then resulted in the RevPar being increased by 193% YoY to Baht 2,486.

In 2022, the hotel Business achieved Total Revenues of Baht6,541 million, an increase of 180 YoY. An Earning before Interest, Tax, Depreciation, and Amortization (EBITDA) was Baht 1,796million (2021: loss of Baht 494 million), a growth of 464%, and %EBITDA margin was 27, an improvement compared to the same period last year (2021: -21. A Net loss was Baht 161 million, a decrease in a Net loss from last year of Baht 1,945 million in 2021, or an improvement of 92%. The strong recovery of the performance in 2022 was due to the significant recovery of five-star and luxury hotels located in tourist attractions, particularly in Bangkok, Pattaya, Phuket, and Samui.

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