Central Plaza Hotel Public Company Limited (SET: CENTEL) reported a robust third-quarter performance for 2026, with core profit surging to THB 400 million, marking a 109% YoY and 127% QoQ increase. This outcome surpassed KGI Securities’ forecast by 51% and exceeded market consensus by 72%, bolstered by better-than-expected margins across both hotel and food businesses and lower interest expenses.
Overall core revenue for the quarter grew 7% YoY and 4% QoQ to THB 6.2 billion, in line with expectations. Hotel revenue increased 9% YoY and 8% QoQ, reaching THB 2.8 billion, buoyed by strong RevPAR growth in Thailand and the Maldives, which offset some softness in Japan. The food business also showed resilience, with revenue rising 5% YoY and 1% QoQ to THB 3.3 billion, attributed chiefly to ongoing outlet expansion despite flat same-store sales growth.
Profitability was a standout, with EBITDA margin at 26.1%, ahead of both the forecasted 24.3% and the previous year’s 25.1%. Hotel EBITDA margin improved to 31.3%, and the food segment achieved a 21.7% margin.
Hotel core profit rebounded to THB 148 million from a loss in the previous year, while food segment core profit climbed to THB 252 million, supported by improved operating efficiency. Interest expenses, on the other hand, came in slightly below expectations at THB 262 million, reflecting sound debt management.
For the first nine months of 2026, core profit reached 71% of KGI’s full-year estimate, suggesting there is upside potential to current earnings forecasts, particularly with an expected seasonal boost in the final quarter. The brokerage maintains its projection of full-year core profit at THB 2.3 billion for 2026 and THB 2.65 billion for 2027, with anticipated growth fueled by the reopening of renovated hotels and additional ramp-up in key markets.
As a result, KGI has reiterated an ‘Outperform’ rating on CENTEL, with a target price of THB 49.00 per share, reflecting confidence in the company’s improved hotel operations, increasing profitability, and potential earnings upgrades following the strong 3Q26 results.
