The Erawan Group Public Company Limited (SET: ERW) has notified the Stock Exchange of Thailand (SET) of the establishment of a new wholly owned subsidiary in the Republic of Korea, under its subsidiary Hop Inn Hotel Public Company Limited (HOP INN).
Details of the New Subsidiary
- Name: Hop Inn Hotel Korea LLC
- Date of Registration: 25 September 2025
- Country of Registration: Republic of Korea
- Registered Capital: KRW 3,000,000,000
- Shareholding Structure: 100% owned by HOP INN
- Funding Source: Company working capital
The entity was established to operate hotel business activities in South Korea, marking another step in Erawan’s regional expansion strategy.
Finansia Syrus Securities (FSS) states that Hop Inn’s business expansion into South Korea is viewed positively and aligns with the company’s strategy to grow its presence to 150 hotels across the APAC region, encompassing a total of 14,000 rooms by 2030. Currently, Hop Inn operates 81 hotels with 7,482 rooms in 3 countries. Although the company has not yet specified the number of hotels or a timeline for commencing operations in South Korea, this development is considered an upside to profit forecasts.
South Korea welcomed 16.4 million international tourists in 2024, with a government target of 30 million visitors by 2030. Ongoing government initiatives to promote tourism are expected to further stimulate travel demand in the country and support Hop Inn’s long-term business expansion. The budget hotel segment, which Hop Inn targets, is projected to achieve profitability within its second year of operations in South Korea.
For the third quarter of 2025, ERW’s group RevPar (Revenue per Available Room) is expected to decrease by around 8% year-on-year, primarily due to a drop in ADR (Average Daily Rate). During China’s Golden Week in early October, the booking rate stood at approximately 85%, with ADR remaining stable year-on-year. As a result, ERW’s RevPar for October is likely to grow by about 1–2% year-on-year. Consequently, normalized profit for the third quarter of 2025 has the potential to increase quarter-on-quarter but will see a smaller year-on-year decline.
