The Erawan Group Public Company Limited (SET: ERW) has started 2026 on a high note, reporting record-breaking first-quarter results fueled by a robust recovery in Thailand’s tourism sector and strategic international expansion. The company’s financial health showed marked improvement across all key metrics compared to the same period last year.
ERW reported a total income of THB 2,255 million for 1Q26, representing a 6% increase over the THB 2,136 million recorded in 1Q25. This growth was primarily driven by hotel operating income, which climbed 5% to THB 2,207 million, supported by a 6% rise in room revenue.
On a normalized basis, net profit reached THB 388 million, a 12% jump year-over-year. Meanwhile, reported net profit stood at THB 375 million, up 9% from 1Q25, following a one-time 13-million-baht fee incurred for early loan repayment as part of a debt refinancing strategy to lower long-term interest costs.
The company’s bottom line benefited from disciplined cost management and a strategic reduction in finance costs, which fell 12% to THB 140 million compared to 1Q25. This reduction helped offset a 5% increase in operating expenses, which totaled THB 1,420 million, and a 9% rise in depreciation and amortization expenses resulting from hotel renovations and new property openings.
Segment performance was notably strong in the luxury segment, where Revenue Per Available Room (RevPAR) surged 11%. The budget “HOP INN” segment saw an 11% increase in total operating revenue, bolstered by robust domestic demand and new locations in Thailand and South Korea.
Despite geopolitical tensions in March that softened bookings from Europe and the Middle East, a 12% surge in Chinese tourist arrivals helped sustain momentum. Looking ahead, ERW maintains a 9% total revenue growth target for 2026, relying on its diversified portfolio to navigate global economic uncertainties.
