Investor Relations at The Erawan Group Public Company Limited (SET: ERW) revealed to Kaohoon that the company’s performance in Q4/2024 is expected to show revenue growth compared to both the previous quarter and the same period last year. This growth is attributed to the high season for tourism and hospitality, as well as the full reopening of the Holiday Inn Pattaya at 100% capacity.
In 2024, Thailand’s tourism market stood out prominently as the world’s number one tourist destination, reflected by the highest hotel room reservation rate and a steady improvement in economic activities. Most importantly, after the high season ends, the government is expected to introduce effective stimulus measures to further support the industry.
Therefore, ERW is confident that in 2024, the company will achieve its revenue growth target of 10-15% to 1.1 billion baht, with an average occupancy rate (OCC) exceeding 80%, and an average daily rate (ADR) increasing by more than 5% compared to the previous year. These projections are supported by the consistent inflow of both Thai and, especially, foreign tourists into Thailand.
As for the Easy E-receipt initiative, it is considered an excellent project that comes at the right time, likely boosting the overall economic atmosphere in 2025 to become more vibrant. The ERW Group has the capability to meet the public’s needs through various initiatives, including its hotel and restaurant businesses, as well as other related ventures.
For the 2025 business plan, the company expects to maintain a growth rate that is at least on par with 2024 across all sectors, with plans to open more than 10 Hop Inn hotels. Further details regarding the 2025 business plan will be announced in the near future.
Bualuang Securities (BLS) has selected ERW as the top pick in the hotel sector, recommending a “buy” with a target price of 5.60 baht. This recommendation is based on ERW’s advantage from the recovery of Thai tourism and its strong performance, which takes into account the impact of a key five-star hotel, the Grand Hyatt Erawan Bangkok (GHEB), contract renewal and renovation. These factors have been incorporated into the company financial performance’s estimates for 2025-2026 in BLS forecast.
