SET-listed developer Raimon Land Plc has revised down its 2020 revenue target by 25-35%, postponed the opening of Hotel Kitch from June to the end of the year and delayed the launch of a new condo project until 2021.
Chief executive Lionel Lee said the coronavirus crisis will hit the company's revenue this year, pulling an earlier estimate of 4 billion baht down to 2.5-3 billion baht by the end of 2020.
"The economy this year will be slow with a U-shaped recovery, not a V, as many economic activities will not open in the second half," Mr Lee said. "But in the post-virus era, real estate, hotel, office, and food and beverage business will come back as demand remains there."
The company finished construction of the Lofts Asoke condo project at the end of last year. It had hoped to transfer to Chinese customers in the first quarter this year, but the outbreak kept them from travelling.
The situation affected first-quarter revenue, which was lower than expected at 423.6 million baht, down 71% from the same period last year.
Revenue from real estate fell 74% to 366 million baht, while revenue from food and beverage slid 25% to 57 million baht.
The developer reported a net loss of 139 million baht in the first quarter, compared with a net profit of 96 million baht in the same period last year.
Raimon Land had a sales backlog of 7.88 billion baht as of the end of the first quarter.
Because the impact of the pandemic continued into the second quarter, the company indefinitely postponed the launch of a new condo project on Sukhumvit Soi 38.
Instead it will focus on cashing in on selling completed condo units worth a total of 3.71 billion baht.
"We will preserve cash as much as possible, yet look for merger and acquisition opportunities, particularly half-finished projects," Mr Lee said.
Raimon Land also postponed the opening of Hotel Kitch, a new concept hotel with a food-inspired theme, from June to December this year.
The vivid 72 rooms on Charoen Nakhon Road, transformed from Vue community mall, will target local tourists.
"We are confident about tourism recovery in the long term," Mr Lee said. "We have another investment in a 300-key hotel, which will be on Sukhumvit Soi 19. It will be completed in the next 36 months, a period in which we anticipate a tourism revival."
To cope with social distancing, health guidelines and reducing human interaction, the company will use a self check-in service.
"Fortunately, our food and beverage business in Singapore, which also faces a lockdown at least until September, saw minimal impact because the Singaporean government gives a 50% wage offset for local employees of food and beverage firms," Mr Lee said.