Central Plaza Hotel Plc (Centel) has posted an improvement in third-quarter revenue and profit this year.
The company posted 5.6 billion baht in total revenue, representing an increase of 186 million baht or 3% year-on-year. The proportion of total revenue remained stable, with the company's hotel business contributing 43% and the food business accounting for 57%, respectively.
Gross profit stood at 2.9 billion baht, while the gross profit margin reached 54% of total revenue, edging down slightly year-on-year from 56%.
Centel achieved earnings before interest, tax, depreciation and amortisation (Ebitda) of 1.35 billion baht, an increase of 183 million baht or 16% year-on-year.
The Ebitda margin improved to 24% in the third quarter, up from 22% year-on-year, due to efficient cost management and an improvement in the share of (loss) gain in investments.
In the third quarter of 2024, Centel recognised gains from changes in the foreign exchange rates relating to foreign currency loans of 8 million baht. The one-time items included pre-opening expenses of two new resorts in the Maldives totalling 11 million baht, and provision for goodwill having written-off Brown Café of 21 million baht.
As of Sept 30, 2024, Centel had a total of 92 hotels (20,505 rooms), with 52 hotels (11,101 rooms) already in operation together with another 40 hotels (9,404 rooms) still under development.
Of the 52 hotels already operating, 20 (5,566 rooms) are owned and operated by Centel, with the remaining 32 hotels (5,535 rooms) being operated under the company's hotel management agreements.
Centel's hotel business achieved a total revenue of 2.23 billion baht in the third quarter of this year, an increase of 76 million baht or 4% year-on-year. Gross profit stood at 1.21 billion baht, down 2% year-on-year.
Gross profit margin dropped to 55% in the third quarter from 58% year-on-year because of the impact of renovation work carried out at Centara Grand Mirage Beach Resort Pattaya and the softer performance of resorts in the Maldives.
The hotel business had an Ebitda of 664 million baht, a growth of 10% year-on-year, mainly driven by the performance of hotels in Thailand and Centara Grand Hotel Osaka. Ebitda margin improved to 27% compared to the same period last year.
The hotel business had a net profit of 19 million baht, an increase of 135% year-on-year.
For the hotel business in 2024, Centel cautiously operates the business by adjusting sales and marketing strategies to boost revenue, closely monitoring performance, controlling costs and expenses, focusing on operating efficiency and financial discipline.
Centel is still pursuing an investment expansion plan to foster future growth with efficient capital allocation by acquiring sources of funds with optimal costs such as loans from financial institutions and debenture issuance along with financial market conditions.