• HOTEL EBITDA increased significantly to THB 1,401 million (excluding Fair Value), representing 83% growth compared to 2019
• Average Daily Rate (ADR) and Revenue Per Available Room (RevPAR) peaked at THB 6,298 and THB 4,711 respectively.
• Q1/2024 Business Unit EBITDA (BU EBITDA) increased significantly to THB 2,020 million, representing 38% growth compared to the same pre-COVID period in 2019.
• AWC continues to increase operating assets based on its GROWTH-LED Strategy, generating total asset value growth of over 80% compared to pre-COVID levels. The company also emphasizes on developing Retail Destination and implementing the ‘Co-Living Collective: Empower Future’ experience for Commercial Business Unit, bolstering assets from Ramp Up stage to Business As Usual (BAU) stage to deliver sustainable value to shareholders and stakeholders alike

14 May 2024, Bangkok, Thailand – Mrs. Wallapa Traisorat, Chief Executive Officer and President, Asset World Corp Public Company Limited or AWC, today announced record-breaking operating results for Q1/2024 with significant growth from the strategy to expand the portfolio of quality assets, especially new operating assets in the Hospitality Business Unit that records the highest growth compared to 2019. HOTEL EBITDA (excluding Fair Value) peaked at THB 1,401 million, an 83% growth compared to the same period of 2019, surpassing pre-COVID levels, and 43% growth quarter-on-quarter. The Hospitality Business Unit continues to thrive, generating an Average Daily Rate (ADR) of THB 6,298 and Revenue Per Available Room (RevPAR) of THB 4,711. Moreover, advance bookings grew to 753,841 nights, the highest level since 2019. Net profit for the quarter was THB 1,604 million, representing an 18.1% increase quarter-on-quarter while total revenue was THB 5,440 million, a 10.3% increase quarter-on-quarter. Business Unit EBITDA (BU EBITDA) climbed to THB 2,020 million, a 38% growth compared to the same period of 2019. AWC continued to implement its GROWTH-LED Strategy, generating total asset value growth of over 80% compared to pre-COVID levels. The company also emphasizes on developing Retail Destination and implementing the ‘Co-Living Collective: Empower Future’ experience for Commercial Business Unit, as well as the transition of its assets from Ramp Up stage to Business As Usual (BAU) stage through global partnerships which contribute to increasing access to customer base from 400 million to 600 million people worldwide. Meanwhile, freehold asset is valued at 94%, driving strong cash flow growth to deliver sustainable value to shareholders and stakeholders alike. In Q1/2024, AWC’s fixed assets totaled THB 149,550 million in value. Operating assets accounted for THB 109,526 million of the total amount.

New High Quarterly Performance

In Q1/2024, the Hospitality Business Unit delivered an impressive performance with the revenue proportion growing to 61%. The outstanding operating results were driven by the expanding Thai tourism sector, which attracted more high-to-luxury tourists, a key target group for AWC. These tourists have supported the growth of all AWC’s hotels especially luxury resorts, Bangkok-based hotels, and other properties outside the capital, contributing to the highest RevPAR and ADR numbers. The occupancy rate in Q1/2024 was 74.8% while HOTEL EBITDA MARGIN stood at 42.1%, up by 7.5% from the previous quarter and higher than the 2019 rate. Thanks to impressive and efficient cost management, the flow-through of the Hospitality Business Unit’s EBITDA was 60% year-on-year. On the Revenue Generation Index (RGI), many of AWC’s hotels outperformed competitors in the same category and area. For example, Courtyard by Marriott Phuket Town’s RGI was 194, Bangkok Marriott Hotel The Surawongse’s RGI was 175, and Le Méridien Bangkok’s RGI was 146.

AWC is determined to continuously develop, renovate, and enhance its quality properties. To increase the value of its operating assets, the company has also launched leading restaurants and cafes in both Bangkok and Chiang Mai including “Hong’s Chinese Restaurant & Sky Bar”, the first upscale rooftop Chinese restaurant in Chiang Mai at InterContinental Chiang Mai The Mae Ping, and “Cafe de Petal”, a European-inspired café at Athenee Tower. Additionally, AWC has also introduced “Pikul” application to ensure customers easy access to hotel, dining, and lifestyle services from AWC and leading partners in the tourism industry. In Q1/2024, AWC boasted 22 hotels with over 6,029 rooms and more than 80 restaurant outlets within hotels and various popular tourist destinations across Thailand.

For the Retail Business Unit, AWC has formulated a strategy to respond to its target groups’ changing lifestyles and needs. The Commercial Business Unit, meanwhile, successfully, and solidly maintained its revenue level, thanks to its Grade A office buildings, which are well-equipped to support hybrid work trend. Moreover, AWC is preparing to launch “Phenix” – a ‘World’s Food Wholesale Hub with Largest Food Lounge in Pratunam’. Scheduled for an official launch on 26 June 2024, Phenix will deliver seamless services both online and offline through collaborations with various world-class partners. Additionally, AWC will soon unveil “EA Rooftop at The Empire”. The project encompasses EA Gallery, featuring leading international-cuisine eateries with breathtaking views of Bangkok, EA CHEF'S TABLE, presenting three restaurants by Michelin-starred chefs, and Nobu Bangkok, which is not only Thailand's first Nobu outlet but also the world's largest and highest Nobu restaurant. Situated at “The Empire,” an ultimate Grade A office building in the heart of Sathorn, “EA Rooftop at The Empire” promises to establish Bangkok as a global destination of largest rooftop dining experience.

GROWTH-LED Strategy Empowers a Long-Term Portfolio

AWC has continued to implement its GROWTH-LED Strategy in pursuit of EBITDA growth. Under this strategy, the company’s unique business model has quickly bolstered the potential of Ramp Up and repositioning of assets which totaled THB 88,339 million in Q1/2024, strengthening them to ‘Business As Usual’ (BAU) stage. Furthermore, AWC has been rigorously turning its developing assets worth over THB 40,024 million into operating assets. The five-year strategy will require an investment budget of more than THB 126,000 million. AWC has a robust debt capacity and Growth Fund Model that will enhance its quality portfolio and value in the long run.

In 2024, AWC plans to develop “Lannatique” as a quality property project that will establish a world-class art, cultural and lifestyle tourism destination in the heart of Chiang Mai. AWC has also invested further in the strategic Chang Klan area to develop a luxury hotel and Chiang Mai’s first in-hotel water park.

“AWC firmly believes in the value of exceptional Thai arts and culture, including the cherished Lanna arts with their longstanding significance. Our shareholders have endorsed investments in ‘Chiang Mai Night Bazaar’, ‘Kalare Night Bazaar’, and ‘The Plaza Chiangmai’ projects, which are integral to 'Lannatique’. This expansive endeavor will commence the opening of its first phase by the end of 2024, followed by subsequent phases scheduled to be completed within 5 years. It aims to foster the growth of the real estate and tourism industries, promote job creation, and stimulate the local economy to strengthen Chiang Mai's position as a world-class sustainable tourism destination. Apart from development in Chiang Mai, which has a total investment exceeding THB 11,950 million, AWC plans to further invest in two additional high-quality real estate projects located in prime areas of Bangkok. The OP Garden project is situated in the Bang Rak area, strategically connected to the flagship project, The Plaza Athenee Nobu Hotel and Spa Bangkok, along the Chao Phraya Riverbank to promote waterfront tourism destinations. Operations for this venture are expected to commence around the fourth quarter of 2027. Furthermore, there are hotel projects focusing on wellness planned for the Sukhumvit 38 area, with operations anticipated to commence around the third quarter of 2028. These developments are aligned with the commitment to support Thailand as a sustainable global tourism destination,” Mrs. Wallapa added.

In Q1/2024, AWC also achieved remarkable success in sustainability, supporting Thai tourism on the global stage by achieving the highest scorer in the Hotels, Resorts & Cruise Lines industry, ranking among the Top 1% (Gold Class) on S&P Global rankings. AWC, moreover, successfully entered S&P Global’s The Sustainability Yearbook 2024. On top of these achievements, AWC has partnered with and secured long-term sustainability linked loans from leading financial institutions. AWC has successfully increased the proportion of sustainability linked loans to 100 percent. These milestones are a testament to AWC’s commitment to its “Building a Better Future” philosophy and solid efforts to establish Thailand as a global sustainable tourist destination.