KGI Securities (Thailand) projects that Asset World Corp Public Company Limited (SET: AWC) will see a 3-4% year-on-year (YoY) increase in revenue per available room (RevPAR) for 2Q26, reversing the 1% YoY decline in 1Q26.
This growth is expected to be driven by improved performance across most hotel segments, especially Bangkok city hotels (+6% YoY), non-Bangkok luxury hotels (+4% YoY), and non-Bangkok upper-upscale hotels (+11% YoY). Contributing factors include the ramp-up of two Pattaya hotels and increased demand in Samui and Hua Hin, supported by stronger international arrivals from China, the U.S., and India.
For the second half of 2026, earnings momentum is expected to accelerate, underpinned by a low base and large-scale MICE events and international concerts. Room rates in Bangkok and Pattaya are projected to rise significantly during major events like the IMF–World Bank Group Annual Meetings and Tomorrowland Thailand.
Forward room revenue bookings for 2H26 are already up 32% YoY, with Bangkok (+61%), Chiang Mai (+33%), and Samui (+14%) leading, though Phuket bookings are weaker due to softer long-haul demand and temporary property closure.
KGI upgraded its earnings forecasts for AWC, raising the 2026-27 outlook by 6% and 3%, respectively, to THB 2.5 billion (+28% YoY) and THB 2.7 billion (+9% YoY). The revision reflects expectations of a 4% increase in RevPAR, stronger forward bookings, a marginally higher gross margin, but also accounts for lower commercial and management service revenues and higher SG&A from pre-opening hotel costs.
Despite these earnings upgrades, KGI maintains a ‘Neutral’ rating on AWC, raising its 2026 target price to THB 2.60 per share (from THB 2.50). The brokerage highlights AWC’s key position in Thailand’s tourism recovery and robust hotel expansion pipeline—forecasted to deliver a 10% earnings CAGR over 2026-27—but believes the current share price already factors in the anticipated recovery and AWC’s premium valuation, which limits further upside.
