AWC Reports Growth Across All Business Units with Net Profit of THB776 Million in 2Q22

Mrs. Wallapa Traisorat, CEO and President of Asset World Corp Public Company Limited or AWC, today announced the company’s total revenue in Q2/2022 as stated in the consolidated financial statement was 3,206 million Baht, an increase of 107.4% year-on-year (YoY), while net profit of 776 million Baht increased over 100% YoY. The remarkable gains were driven by strong company strategies and preparations for Thailand’s reopening post-pandemic. The growth was also supported by the government’s tourism promotion policies and easing of COVID-19 control measures, which have encouraged people to resume their normal lifestyles. In addition, the fair value gain from Investment Properties also contributed to AWC’s strong net profit.

“In Q2/2022, AWC achieved continued growth across all business units, with a strengthened financial performance due to the company’s strong operating assets, capability to respond to customer demand, and efficient cost management. In 1H2022, AWC recorded a net profit of 1,422 million Baht, an increase of more than 100% from the same period last year, driven mainly by strong growth in our Net Operating Profit of more than 100% from the Hospitality Business. The growth trend looks set to continue as Thailand has fully re-opened to international visitors, and we are ready to welcome travelers in increasing numbers,” Mrs. Wallapa said.

The Hospitality Business has shown growth in every hotel segment, with the luxury hotels in particular benefitting from Thailand’s reopening. The rise in the number of international visitors along with the Thai government’s campaign to boost domestic tourism has pushed AWC’s Revenue per Available Room (RevPAR) in Q2/2022 up by 302% YoY, while the Average Daily Rate (ADR) rose by 48% YoY to almost reach pre-COVID-19 levels. In addition, the Company’s MICE segment grew considerably by 407% YoY, contributing to the solid performance of the Hospitality Business.

The Retail and Commercial Business also enjoyed growth as people returned to malls and consumer spending increased. For example, visitor traffic to ASIATIQUE The Riverfront Destination in Q2/ 2022 increased by 220% YoY. AWC plans to develop its property projects and upgrade related services further to cater to every lifestyle and keep pace with changes in consumer behavior. The ability to leverage the strengths of each project with other lifestyle businesses under its wing marks one of AWC’s strengths in achieving synergies to drive growth. Meanwhile, Commercial buildings continued to generate consistent cash flow and attract new international tenants. The Average Rent Rate in Q2/2022 increased by 9.3% YoY while the tenant-retention rate remained at 96%. These achievements were due to AWC’s A-grade facilities and prime locations in the Central Business District (CBD), together with its focus on developing new technologies to ensure the safety and convenience of its tenants.

AWC will continue to develop quality projects not just to foster business growth but also to strengthen Thailand’s tourism industry, which is enjoying a rebound in the wake of the country’s re-opening. In April, AWC launched Mélia Chiang Mai, the first hotel from the Mélia brand in the North. This pushed AWC’s total number of available rooms to 5,201, an increase of 61% from pre-pandemic levels. In addition, AWC has collaborated with world-class partners to strengthen sustainable business growth. Partnerships include an agreement with InterContinental Hotels Group for the joint development of the Kimpton Hua Hin Resort. AWC also concluded a deal with Chinese partners to elevate AEC Trade Center’s wholesale channels and established a joint venture with an international investment group to support its investment in high-potential hospitality assets at prime locations in Thailand.

“AWC is committed to operating our businesses sustainably, guided by the BETTER PLANET, BETTER PEOPLE, BETTER PROSPERITY framework. In the past quarter, we were very pleased and proud that SIAM COMMERCIAL BANK PCL provided a Sustainability-Linked Loan and ESG-Linked Interest Rate Swap – the first for the Thai real-estate industry. AWC has also received a Green Loan from KASIKORNBANK PCL to finance green projects at our properties. All these successes marked major milestones in our commitment to conduct our business based on sustainable development guidelines with the goal of generating long-term value for all stakeholders,” Mrs. Wallapa concluded.