SET-listed Asset World Corp (AWC) is ramping up new investment to 22 billion baht in the hospitality sector this year to capture the rising tourism wave, starting with 8.7 billion baht to acquire the Le Concorde office and hotel on Ratchadaphisek Road.
Wallapa Traisorat, chief executive and president of AWC, said hotels recorded outstanding performances last year compared with leasing revenue from commercial spaces, encouraging the company to focus on adding more luxury portfolios this year to gain higher profit.
Mrs Wallapa said when AWC listed in 2019, it initially aimed to have revenue from hotels and leasing split equally at 50%.
However, the hotel business share has climbed to 60%, with leasing dropping to 40%. Even though revenue from leasing still recorded growth in 2024, it was only 8% compared with 20% revenue growth for hotels, she said.
In 2024, AWC set new records in five categories, mostly driven by the hotel business as the average daily rate (ADR) surged to 5,873 baht from 5,661 baht, while revenue per available room (RevPar) soared to 4,200 baht from 3,658 baht.
Its net profit was driven to a record high of 5.8 billion baht in 2024, up from 5.1 billion baht in 2013, as well as business unit Ebitda (earnings before interest, taxes, depreciation, and amortisation) of 12 billion baht, and Ebitda yield of 10.1%, up from 8.6% in 2023.
Mrs Wallapa said AWC's growth in terms of RevPar at 15% also exceeded the industry average of 12%, as well as the average occupancy growth of 7%, higher than the market average of 2% recorded last year.
Looking into 2025, the company aims to drive occupancy rates across its 6,971 rooms to more than 75%, up from 72% in 2024.
She said the company plans to grow the overall value of assets to 300 billion baht within five years, a huge increase from 1.98 billion baht in 2024, with the number of hotel rooms doubling to 12,000.
Mrs Wallapa said one of the key strategies is to bring the most luxurious hotel brands to properties that have the potential to generate a stable revenue for the company.
For instance, the latest acquisition on Ratchadaphisek Road will be transformed into a JW Marriott property before the end of this year. On completion, this project's ADR should grow from around 2,000 baht at present to the same level of other properties under AWC at over 5,800 baht.
In the fourth quarter of 2024, AWC saw a surge in ADR among many renovated properties compared to the pre-development stage, such as Melia Chiang Mai, whose ADR rose by 639%, and Courtyard by Marriott Phuket, whose ADR grew by 386%.
