Commercial property developer UHG expects revenue growth of 10% to 2.2 billion baht in 2024, with Chinese tourist arrivals potentially returning in the third quarter of the year.
Managing director Wutthiphon Taworntawat said the performance of its hotels improved in 2023 compared with 2022, but the growth fell below expectations due to the sluggish rate of return of Chinese tourists.
"Even though China opened its borders early lst year and the Thai government offered visa-free entries for Chinese nationals in September 2023, their return was not as substantial as anticipated," he said.
Other factors contributing to the slow return included China's focus on domestic tourism within the mainland and unfavourable economic conditions. This trend would continue in the first half of this year, said Mr Wutthiphon.
However, guests from South Korea, Taiwan, India and Arab countries have increasingly been filling the void left by independent travellers and tour groups from China.
UHG expects revenue of 2.2 billion baht in 2024, a 10% increase from last year. This growth is lower than the regular rate of 15% which was attributed to the annual addition of new hotels to its portfolio.
The company posted revenue of 1.8 billion baht in 2023, a 50% increase from 1.2 billion baht recorded in 2022, thanks to new hotels opening late in 2022, such as The Quarter Chao Phraya. Two other new hotels emerged in the second half of the year, namely The Quarter On Nut at Sukhumvit Hills with 90 rooms which opened in September, and The Quarter Ratchathewi with 100 rooms which opened a month later.
Of the overall revenue in 2023, 70% was derived from hotels, comprising 16 locations in Bangkok, while 30% was generated by office space for rent at three projects including mixed-use components with hotels, namely Ari Hills, Ladprao Hills and Sukhumvit Hills.