Dusit Thani Public Company Limited (DUSIT), one of Thailand’s leading hotel and property development companies, announced its financial results for 2Q23. The company’s EBITDA reached THB 139 million, marking a significant 157.4% increase compared to last year. This positive EBITDA is driven by the recovery of DUSIT’s hotel business and growth of investments in the food sector.
During this quarter, DUSIT also reported a net loss of THB -186 million, a notable 27.9% reduction on the same period of last year, showing a positive shift from the previous net loss of THB -258 million.
Group CEO of DUSIT Ms. Suphajee Suthumpun, the company achieved 31.5% YOY growth in hotel revenue, driven by a substantial boost in occupancy and average daily rates, resulting in a 24.9% increase in RevPAR. Nevertheless, the company’s overall QOQ performance was weakened, following a net profit of THB 9 million in 1Q2023, due to a dip in hotel revenue during the low season.
Food revenue increased by 65.7% YOY, driven by the resumption of onsite international school catering business and the successful investment in a baking factory and franchise bakery business. This investment was initiated in 2Q22 in line with the company’s strategy for expansion and diversification.
Highlighting notable progress in 2Q23, DUSIT opened three new hotels under Hotel Management Agreements – namely dusitD2 Samyan Bangkok (179 rooms), ASAI Bangkok Sathorn (106 rooms) and ASAI Kyoto Shijo Japan (114 rooms) – resulting in a total of 52 hotels in operation worldwide. For luxury villa management, Elite Havens continued to adjust its portfolio to focus on quality and a higher range of the value chain. As of 2Q23, the company’s portfolio includes 282 hotels and villas (approximately 12,080 rooms) across 18 countries.
DUSIT also made further moves to support the United Nations’ Global Sustainable Development Goals 2030 by rolling out a new group-wide sustainability program, ‘Tree of Life.’ The program includes Environment, Social, and Governance (ESG) elements, ensuring that Dusit properties operate as sustainably as possible.
For the remainder of 2023, the company’s business outlook remains positive. Business recovery is expected to continue with greater revenue contribution from food business. The forecasted growth rate of total revenue from all of DUSIT’s existing operations stands between 30%-35% YOY, with an anticipated EBITDA margin of approximately 15%-18% of total revenue for 2023.
In terms of property development business, the construction of Dusit Central Park is progressing as planned. The residential sales target for this year is set at 70%-75%, with 65% of the saleable area achieved since July.