Central Plaza Hotel Plc (Centel) has announced a strong financial performance for the first quarter of 2024, reporting a net profit of 756 million baht, a 20% increase from the same period last year.
The increase has been attributed to the robust performance of both its hotel and food businesses.
According to the company's performance statement submitted to the Stock Exchange of Thailand, Centel's total revenue for the first quarter reached 6.39 billion baht, marking a 9% year-on-year increase. Gross profit for the quarter stood at 3.61 billion baht, up 10%, representing a gross profit margin of 59%.
The company's hotel business was robust in the first quarter, with 3.24 billion baht in revenue, a 15% increase from the previous year. The average revenue per available room (RevPer) rose by 19% to 4,994 baht because of the high season with the sustainable recovery of the hotel business in Thailand and overseas. The average room rate (ARR) increased by 20% year-on-year to 6,464 baht.
Despite a slight dip in the average occupancy rate from 78% to 77%, the segment saw significant growth due to higher room rates. Centel manages 95 hotels, with 52 currently operational and 43 under development.
For its food business performance, the company reported revenue of 3.14 billion baht, up 4% year-on-year, with Same Store Sales (SSS) growth of 1%. Total System Sales (TSS) grew by 3%. The increase in revenue was mainly from the key brands -- KFC, Auntie's Anne and Ootoya. Centel expanded its food business with a net addition of 19 outlets, bringing the total to 1,618 outlets.
Centel forecasts an average occupancy rate of 70%-73% and a RevPAR of 4,000-4,300 baht in 2024. Key growth drivers include continued growth from luxury hotels in Thailand and performance from Centara Mirage Beach Resort Dubai and Centara Grand Hotel Osaka. The company expects SSS for its food business, excluding joint ventures, to grow by 3%-5% and TSS by 8%-11%. Centel plans to add 80-95 new outlets this year, or 5%-6% growth, focusing on its own brands and joint ventures.
Meanwhile, the company's board has approved a dividend payment of 0.42 baht per share for the 2023 performance. The payment date is due for May 27.