Property Perfect records hotel revenue surge in Q1

Property Perfect records hotel revenue surge in Q1

The Siam Yacht Club at the Royal Orchid Sheraton by the Chao Phraya River, a riverside restaurant the hotel renovated during the pandemic.
The Siam Yacht Club at the Royal Orchid Sheraton by the Chao Phraya River, a riverside restaurant the hotel renovated during the pandemic.

SET-listed developer Property Perfect recorded hotel revenue growth of more than four times in the first quarter of 2023 thanks to a robust recovery in the tourism sector.

Wongsakorn Prasitvipat, managing director, said the company's hotel business under its subsidiary Grande Asset Hotels & Property recorded a surge of 321% in revenue in the first quarter of 2023, from 212 million baht in the same period last year.

"The growth was based on the occupancy rate and average daily rate, which recovered faster than our initial expectations," he said.

Grande Asset operates three hotels in Bangkok, comprising Hyatt Regency Bangkok Sukhumvit, The Westin Grande Sukhumvit, and Royal Orchid Sheraton Hotels & Towers.

The company also has two hotels in Phetchaburi and Prachuap Khiri Khan: Sheraton Hua Hin Resort & Spa and Sheraton Hua Hin Pranburi Villas.

Grande Asset aims to tally 3 billion baht in hotel revenue by the end of 2023, up from 1.8 billion in 2022 and 696 million in 2021.

Carlos Martinez, director of research and consultancy at property consultant Knight Frank Thailand, said the Thai tourism sector in 2022 recovered to 27% of the 2019 level thanks to the country's reopening, exceeding the Asia-Pacific average of 23%.

"The Thai hotel market in 2023 will have a positive trend because of the end of the pandemic, pent-up demand and economic growth, which is estimated at 3-4% this year," he said.

In the first two months of 2023, the number of foreign arrivals to Thailand was 60% of the level in 2019, with a hotel occupancy rate of 72%, up greatly from 36% in the same period last year.

Mr Martinez said the tourism industry this year would rebound to 28 million tourist arrivals, or 70% of the 2019 peak of 39.8 million tourist arrivals.

"This could potentially benefit high-end, midscale and small hotels, driven by tour groups and meeting, incentives, conference and exhibitions travellers who may visit to attend conferences and seminars," he said.

However, challenges for the hotel industry this year could include a shortage of staff and a potential increase in construction, operational costs and financial costs, said Mr Martinez.

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