On Wednesday at 11:04 AM (Bangkok time), the share price of The Erawan Group Public Company Limited (SET: ERW) rose by 6.40% or THB 0.22 to THB 3.66, with a trading value of THB 68.11 million.
TISCO Securities projects that the core net profit of ERW in the third quarter of 2026 will reach THB 98 million, marking a 74% increase year-on-year and a 37% rise quarter-on-quarter. This outlook aligns with solid operating statistics within the company’s hotel business, reflecting robust growth in revenue per available room.
For 3Q26, the RevPAR of the hotel segment excluding Hop Inn grew by 7%, driven primarily by strategic room rate hikes that supported an 8% increase in average daily rate. Despite a slight dip in occupancy rate by 1%, adjusted RevPAR, excluding the temporary closure of part of the Grand Hyatt Erawan hotel for renovations, would be higher than the reported figure.
The luxury hotel segment posted the most outstanding performance, with RevPAR up by 10%, buoyed by strong demand from key markets such as the U.S., China, and the United Arab Emirates. In particular, Bangkok continued to deliver strong results. Demand from tourists from the U.S., China, and the Middle East helped offset weaker domestic and Indian tourist numbers in Pattaya and Phuket. Overall, the tourism sector remains under pressure due to ongoing geopolitical factors.
Hop Inn remains a significant growth driver for ERW, with revenue expected to increase by 10% year-on-year, supported by new hotel openings over the past 12 months. Same-store sales growth is trending positively, with RevPAR up by 4%, excluding foreign exchange impacts, due to ADR increases in both Thailand and the Philippines.
ERW’s growth strategy, focused on raising room rates, continues to support profitability. TISCO forecasts the EBITDA margin for the third quarter of 2026 at 28.6%, improving by 1.6 percentage points from 27% in the same period last year.
The brokerage maintains a ‘Buy’ rating on ERW, with a target price of THB 4.20 per share, highlighting improving confidence in the tourism sector during the upcoming high season in 4Q26. This will be further supported by a robust schedule of meetings, incentives, conventions, and exhibitions.
Furthermore, ERW’s ongoing ability to raise room rates should continue to drive profit growth as demand rebounds, helping to offset lingering short-term risks from increasing competition in Bangkok, ongoing renovations at the Grand Hyatt Erawan, and geopolitical uncertainties.
