Asset World Corporation President Mrs. Wallapa Traisorat Delivers Strong Q1/2024 Results - Travel And Tour World

Asset World Corporation President Mrs. Wallapa Traisorat Delivers Strong Q1/2024 Results

Wednesday, May 15, 2024

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Asset World Corporation

Mrs. Wallapa Traisorat, the Chief Executive Officer and President of Asset World Corporation Public Company Limited (AWC), announced the exceptional operational achievements for Q1/2024. These results were driven by a strategic expansion of high-quality assets, particularly new assets in the Hospitality Business Unit, showcasing remarkable growth compared to 2019. Specifically, the HOTEL EBITDA (excluding Fair Value) soared to THB 1,401 million, marking an 83% increase from the same period in 2019 and a 43% increase quarter-on-quarter, surpassing pre-COVID levels. The Hospitality Business Unit demonstrated robust performance with an Average Daily Rate (ADR) of THB 6,298, Revenue Per Available Room (RevPAR) of THB 4,711, and advance bookings reaching 753,841 nights, the highest since 2019. Quarterly net profit reached THB 1,604 million, a quarter-on-quarter increase of 18.1%, with total revenue rising to THB 5,440 million, up by 10.3% quarter-on-quarter. The Business Unit EBITDA (BU EBITDA) also climbed by 38% compared to Q1/2019. AWC’s growth-led strategy facilitated an over 80% increase in total asset value compared to pre-COVID levels, emphasizing the development of Retail Destination and implementing innovative experiences like ‘Co-Living Collective: Empower Future’ for the Commercial Business Unit. Through global partnerships, AWC expanded its customer base from 400 million to 600 million people worldwide. Moreover, with a freehold asset valuation at 94%, AWC achieved strong cash flow growth, delivering sustainable value to shareholders and stakeholders. In Q1/2024, AWC’s fixed assets totaled THB 149,550 million, with operating assets comprising THB 109,526 million.

Remarkable Q1/2024 Performance

The Hospitality Business Unit excelled in Q1/2024, contributing 61% to total revenue. This growth was driven by Thailand’s expanding tourism sector, attracting more high-end tourists, a key target for AWC. The luxury resorts, Bangkok-based hotels, and other properties outside the capital experienced robust growth in RevPAR and ADR. The occupancy rate reached 74.8%, and HOTEL EBITDA MARGIN stood at 42.1%, a 7.5% increase from the previous quarter and higher than 2019 levels. Efficient cost management led to a 60% year-on-year increase in the Hospitality Business Unit’s EBITDA. AWC’s hotels outperformed competitors in the same category and area, with notable Revenue Generation Index (RGI) figures such as Courtyard by Marriott Phuket Town at 194, Bangkok Marriott Hotel The Surawongse at 175, and Le Méridien Bangkok at 146.

AWC’s Strategic Initiatives

AWC focused on developing, renovating, and enhancing its quality properties, launching leading restaurants like “Hong’s Chinese Restaurant & Sky Bar” in Chiang Mai and “Cafe de Petal” at Athenee Tower. The introduction of the “Pikul” application streamlined customer access to hotel, dining, and lifestyle services. AWC boasted 22 hotels with over 6,029 rooms and more than 80 restaurant outlets across Thailand. In the Retail Business Unit, AWC adapted to changing lifestyles, while the Commercial Business Unit maintained solid revenue levels, supported by Grade A office buildings catering to the hybrid work trend. AWC is set to launch “Phenix” – a ‘World’s Food Wholesale Hub with Largest Food Lounge in Pratunam’ on 26 June 2024, offering seamless online and offline services. “EA Rooftop at The Empire” will feature international-cuisine eateries and Bangkok’s first Nobu outlet, enhancing the city’s global appeal.

Empowering Long-Term Growth

AWC’s GROWTH-LED Strategy focuses on EBITDA growth, transitioning assets to Business As Usual (BAU) stage, and investing in developing assets. The company’s unique business model has strengthened assets worth THB 88,339 million to BAU stage and turned developing assets worth over THB 40,024 million into operating assets. The five-year plan requires an investment of over THB 126,000 million, supported by a robust debt capacity and Growth Fund Model to enhance long-term value. AWC’s vision includes developing “Lannatique” in Chiang Mai as a world-class cultural and lifestyle tourism destination, alongside investments in luxury hotels and innovative experiences to further solidify its position in the market.

“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 the first quarter of 2024, AWC excelled in sustainability, showcasing significant accomplishments in promoting Thai tourism internationally. The company achieved the highest rating in the Hotels, Resorts & Cruise Lines sector, placing in the top 1% (Gold Class) according to S&P Global rankings. AWC also earned a spot in S&P Global’s The Sustainability Yearbook 2024. Additionally, AWC secured long-term sustainability-linked loans and formed partnerships with major financial institutions. Notably, the company has transitioned to 100% sustainability-linked loans, underscoring its dedication to the “Building a Better Future” ethos and contributing to Thailand’s reputation as a sustainable global tourist destination.

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