• Revenue in Q2/2023 grew to 4,518 million baht, a significant increase from a year earlier. This helped drive Net Profit up 32% year-on-year to 1,116 million baht, higher than 2019 before the COVID-19 pandemic
• Revenue and EBITDA of the Hospitality Business grew year-on-year to above 2019 levels. Average Revenue Per Available Room (RevPAR) increased 82.1% year-on-year to 3,356 baht, also 10% higher than before the pandemic
• AWC is committed to increasing its operating assets through a GROWTH-LED strategy and securing its sustainability-linked loans, supporting its long-term investment plans for sustainable growth

10 August 2023, Bangkok, Thailand – Mrs. Wallapa Traisorat, Chief Executive Officer and President, Asset World Corp Public Company Limited or AWC, today announced the performance results per Financial Statements including fair-value gain for Q2/2023, with revenue of 4,518 million baht and net profit growing 32% from a year earlier to 1,116 million baht, higher than in 2019 before the COVID-19 pandemic. AWC’s GROWTH-LED strategy is helping deliver efficient cash flow growth, supported by the continued enhancement of Hospitality Business project development, driven by the transformation of developing assets to operating assets, and the enhancement of its Retail & Commercial Business’ assets. In Q2/2023, the total value of the Company’s operating assets was 120,307 million baht, rising by 36,996 million baht or 44.4% from pre-pandemic 2019.

“In Q2/2023, AWC’s operating result grew from the same period a year earlier with Net Operating Profit (BU EBITDA) of 2,472 million baht, increasing by 20.4% year-on-year. Overall business growth was the result of a rebounding Hospitality Business and the improving Thai tourism industry, supported by the Songkran Festival in April that was celebrated without restrictions for the first time since the outbreak of COVID-19. The upward trend was especially evident in AWC’s Bangkok City hotels and MICE hotels segment that had more customers compared to last year. This resulted in an average Revenue Per Available Room (RevPAR) of 3,356 baht, representing growth of 82.1% year-on-year and 10% higher than 2019 before the COVID-19 pandemic, while the Average Daily Rate (ADR) increased to 5,367 baht, up 25.9% year-on-year and also above the pre-pandemic rate. For the Retail & Commercial Business, AWC continued to foster its potential for long-term cash flow growth and enhance its operational strategy to set a new benchmark for the lifestyle real estate industry towards the ultimate goal of responding to meet the diverse needs of customers,” Mrs. Wallapa said.

Hospitality Business

The Hospitality Business Unit recorded a Net Operating Profit (BU EBITDA) of 660 million baht, an increase of 200.2% year-on-year. AWC’s Bangkok City hotels and MICE hotels segment yielded a higher Revenue Generation Index (RGI) when compared to hotels in the same group in nearby areas such as the Bangkok Marriott Hotel The Surawongse with an RGI of 218. In addition, AWC focused on project development by converting developing assets to operating assets with the goals of enhancing its operational profitability (BU EBITDA) and strengthening its portfolio of hotels in strategic locations in response to rebounding international arrivals. For example, the launch in July of 'INNSiDE by Meliá Bangkok Sukhumvit' - the first of its kind in Thailand, offering a modern lifestyle experience for the new generations of travelers, and has been certified to meet Excellence in Design for Greater Efficiency (EDGE) standard. In addition, AWC has strengthened its exclusive strategic partnership with Nobu Hospitality to launch two iconic Plaza Athénée Hotels - Plaza Athénée Nobu Hotel and Spa New York and The Plaza Athénée Nobu Hotel and Spa Bangkok, synergizing two iconic properties in New York and Bangkok under the AWC's "River Journey Project", connecting with other AWC properties by the Chao Phraya River, enriching travelers’ river experiences.

Currently, AWC operates 22 hotels with a total of 5,794 room keys. By the end of 2023, the number of hotels in AWC’s portfolio is expected to increase to 23 with 6,034 room keys, a 76% increase compared to 3,432 room keys before the pandemic. The strong growth of the Average Revenue Per Available Room (RevPAR) resulted in revenue in the Hospitality Business growing 76.8% year-on-year to 2,287 million baht. AWC will continue to increase its efficiency to generate strong cash flow, and respond to the needs of quality tourists and its growing high-to-luxury customers.

Retail & Commercial Business

The Commercial Business continued to generate cash flow for the Company, with rental rate rising by 6% in Q2/2023 from the same period a year earlier, as its office buildings were upgraded into new lifestyle spaces that meet the needs of modern work and lifestyles by launching the “Co-Living Collective: Empower Future” at The Empire, Thailand’s largest co-living spaces to help people achieve work-life integration and differentiating itself from traditional office buildings. The Empire has not only retained its old tenants, but it has also attracted new tenants who are looking for quality and modern office spaces that meet the hybrid work trend. Moreover, AWC has partnered with a global digital technology provider in developing the digital ecosystem at ‘The Empire’ to connect tenants in the digital industry in the building.

The Retail and Wholesale Business Unit, meanwhile, enjoyed robust growth as a result of sales growth of tenants in AWC properties and constant development areas that enabled the business to keep pace with the lifestyles of both tourists and local customers. The number of visitors to Asiatique The Riverfront Destination grew by 47% year-on-year, thanks to the ‘Disney100 Village at Asiatique’ event, and a world-class food and beverage destination created to attract both Thais and foreigners. Furthermore, the Company introduced "THE PANTIP LIFESTYLE HUB" to create an "EVERY HAPPINESS FOR EVERYONE" space in central Chiang Mai, and unveiled under the concept of “TREASURE HUNT” as the largest market of amulets, food and lifestyle products at THE PANTIP AT NGAMWONGWAN. The Wholesale Business, meanwhile, joined forces with food industry leaders from the public and private sectors to promote Thailand as a "regional food wholesale hub" by launching AEC FOOD WHOLESALE PRATUNAM, providing comprehensive solutions to the food wholesale industry, connecting wholesalers worldwide with buyers across the AEC.

“AWC is committed to pursuing continued and sustainable growth. We have already signed a Sustainability Linked Loan and Green Loan valued at THB 20,000 million baht with SCB in preparations for the development of our mega projects, which will further strengthen our portfolio of assets that focus on resource-usage reduction, energy efficiency, to promote Thailand as a global sustainable tourism destination. The Company aims to increase the proportion of long-term loans linked to sustainability to 100% in order to create a sustainable future for all stakeholders,” Mrs. Wallapa added

AWC is committed to operating its businesses based on its strategies for sustainable growth. AWC has received several awards that are testaments to its businesses’ focus on sustainable development and has been recognized by leading domestic and international institutions. AWC has been ranked in the S&P CSA Yearbook 2023 sustainability report as a "Top 1% S&P Global ESG Score 2022", and listed in the Dow Jones Sustainability Indices (DJSI), a family of best-in-class benchmark. The Company also received a “AA” rating from MSCI ESG Rating. These accolades reflect AWC’s commitment to generating sustainable value for all stakeholders and creating new benchmarks for Thailand’s real-estate and sustainable tourism industry, in line with its mission of “Building a Better Future.”