AWC announces the performance in Q1/2023, there was significant increase with a net profit of 1,422 million baht, more than doubling year-on-year and higher than 2019 before the COVID-19 pandemic

15 May 2023
  • Revenue in Q1/2023 grew 65.5% year-on-year to 4,785 million baht, reflecting the implementation of the GROWTH-LED strategy to generate efficient cash flow growth
  • Hospitality Business grew across all segments with an average Revenue Per Available Room (RevPAR) of 4,152 baht, representing 17% growth compared to 2019 before the COVID-19 pandemic and increasing 15% from the previous quarter
  • AWC is committed to increasing its operating assets through GROWTH-LED strategy, resulting in the current operating assets of 119,859 million baht, an increase of 36,548 million baht compared to 2019, representing growth of 43.9%

15 May 2023, Bangkok, Thailand – Ms. Wallapa Traisorat, Chief Executive Officer and President, Asset World Corp Public Company Limited or AWC, today announced strong performance results per Financial Statements including fair-value gain for Q1/2023 with revenue of 4,785 million baht, a significantly 65.5% year-on-year increase. The company achieved a net operating profit (EBITDA) of 2,572 million baht for Q1/2023, a 67.2% rise year-on-year. The impressive performance was the result of the strong and continuous growth of the Hospitality Business across all segments, which generated an average Revenue Per Available Room (RevPAR) of 4,152 baht, surpassing the 17% achieved in 2019 prior to the pandemic. In particular, Non-Bangkok City and Luxury Resort recorded exceptionally high Occupancy Rates following a significant increase in Thai and foreign tourists following the full reopening of Thailand particularly during the high tourist season like the New Year festival. This resulted in a remarkable net profit of 1,422 million baht, 100.5% growth, and was also higher than 2019 before the pandemic.

AWC has continued to develop high-quality assets into operating assets to enhance potential operating profit generation (BU EBITDA). In Q1/2023, the company's total operating assets amounted to over 119,859 million baht, an increase of 36,548 million baht compared to 2019, representing growth of 43.9%. The company also has plans to develop various projects to create strong and robust cash flow in the medium term. AWC also has the investment pipeline under the Right of First Refusal (ROFR) from the TCC Group, and explores opportunities for long-term investments in other high-quality assets. With the continuous growth of high-quality assets, the company believes that cash flow will be generated exponentially.

“AWC’s strong operating results from Q1/2023, which mark business growth from Q4/2022 and pre-COVID-19 pandemic in 2019, represent a positive start for 2023. Such remarkable success stems from the execution of our GROWTH-LED strategy, driven by the conversion of developing assets to operating assets, whose value has increased by over 36,548 million baht compared before COVID-19. I am particularly pleased that the company has continued to successfully grow its cash flow while accelerating the growth rate of returns through asset development to meet the diverse needs of customers. For instance, the performance of the Hospitality Business Unit has yielded a higher Revenue Generation Index (RGI) when compared to hotels in the same group in nearby areas, such as Bangkok Marriott Marquis Queen's Park with an RGI of 201 and Courtyard by Marriott Phuket Town with an RGI of 195. Additionally, the overall Revenue per Available Room (RevPAR) has reached as high as 4,152 baht, with effective cost control measures contributing to the robust in BU EBITDA margin, excluding fair-value in Q1/2023, at 45%, surpassing the strong performance of Q1/2022 at 14%,” Ms. Wallapa said.

Hospitality Business

The Hospitality Business enjoyed robust growth across all segments, especially Luxury Resorts and Non-Bangkok City, which appeal to High-to-Luxury customers. The business unit’s growth is in line with Thailand’s full-scale re-opening, with tourism demand rising significantly during the New Year period. This resulted in an average Revenue Per Available Room (RevPAR) of 4,152 baht, which is higher than the pre-COVID-19 period in 2019 when it was 3,549 baht, representing growth of 17%. In Q1/2023, the Hospitality Business earned 2,743 million baht in revenue and EBITDA reached 1,091 million baht, a significant increase year-on-year and representing growth of 28.7% from the previous quarter.

AWC is determined to continuously develop its quality assets to operating assets with rising value. Currently, AWC has 5,588 room keys, a 63% increase compared to before the pandemic. So far this year, AWC’s hospitality portfolio has been constantly improving with two new hotel openings, Innside by Melia Bangkok Sukhumvit and InterContinental Chiang Mai Mae Ping Hotel, along with the rebranding of Le Méridien Chiang Mai to Marriott Chiang Mai. AWC expects to increase its hotel portfolio from 20 hotels in 2022 to 22 hotels in 2023, totaling 6,036 rooms. This expansion will enhance the company's capacity to meet the growing demands of tourists and target customer groups. Moreover, AWC continues to collaborate with global partners to enhance the strength of its high-quality assets in the Hospitality Business Unit (Assets Enhancement). For example, the partnership with Accor to rebrand the Grand Mercure Bangkok Windsor into the first Fairmont Bangkok Sukhumvit hotel in Thailand.

Retail & Commercial Business

The Retail and Wholesale Business has enjoyed continuous growth in tenants, driven by increased consumer spending and tourism. This growth is particularly notable in Tourist Lifestyle Destination, with revenue increasing more than 114% year-on-year.

AWC is also committed to developing projects in response to the diverse needs and lifestyles of consumers. For example, Asiatique The Riverfront Destination is developed under the concept of “ALL DAY EVERYDAY HAPPINESS”, and during the first quarter opened the “Disney100 Village at Asiatique”, a special pop-up event celebrating 100 years of Disney, and launched “The Crystal Grill House” and “The Siam Tea Room” restaurants to support the Asiatique The Riverfront Destination as a world-class food & beverage destination. The Occupancy Rate and Rental Rate at Asiatique The Riverfront Destination have been rising in line with the growing number of visitors, which rose by 250% year-on-year. In addition, AWC launched THE PANTIP LIFESTYLE HUB in Chiang Mai under the concept “EVERY HAPPINESS FOR EVERYONE” with the aim of establishing a lifestyle landmark for families in the heart of Chiang Mai. In April, AWC collaborated with partners in the government and private sectors to promote Thailand as the “regional food wholesale hub” by unveiling a new business model for the AEC FOOD WHOLESALE PRATUNAM Project. The move was designed to deliver an integrated food wholesale solution and connect food wholesalers with customers across ASEAN.

The Commercial Business Unit continued to generate cash flow for AWC from the growing demand for well-equipped grade-A office buildings with comprehensive amenities. This caters to the future trend of blending work and lifestyle together. These office spaces are also certified as Green Buildings, supporting AWC’s sustainability strategy. In the past quarter, AWC also introduced the "Co-Living Collective: Empower Future" at “The Empire”, the largest co-living space in Thailand, spanning over 1,500 square meters, which aims to provide an exceptional experience for tenants and meet the needs of both work and lifestyle in one place.

“AWC continues to prioritize profitability and efficient cost control while concurrently implementing the development of projects to build the proportion of quality operational assets, strengthening the portfolio and responding to the evolving demands of customers in the new era. Our efforts, which also resonate with the government’s tourism-promotion policy, strengthen AWC in a secure and sustainable manner in accordance with our commitment of ‘Building a Better Future’,” Mrs. Wallapa said.

AWC is committed to operating its businesses based on its strategies for sustainable growth and is ready to create value for stakeholders across all sectors. Currently, AWC has won “Thailand’s Top Corporate Brands 2022” for having the highest brand value in Thailand’s property-development sector last year, organized by the Master in Branding and Marketing Program (MBA) under the Faculty of Commerce and Accountancy, Chulalongkorn Business School, and The Stock Exchange of Thailand. This accolade underlines AWC’s business potential and exceptional brand image. In addition, AWC has bagged “Asia's Greatest Brand 2023” from the Edition of Asian Business & Social Forum - Asia’s Greatest Brands and Leaders 2023, organized by Asia One Magazine, the leading business magazine of India. This award has been granted to AWC for being an outstanding leader and brand in the hospitality business category in 2023.