Phillip Securities (Thailand) anticipates an increase in total revenue for Central Plaza Hotel Public Company Limited (SET: CENTEL) during the third quarter of 2025, driven by positive momentum in both its hotel and restaurant segments.
Hotel Operations: The brokerage firm expects CENTEL’s hotel business to post high single-digit growth in 3Q25, supported by a 3% year-on-year rise in average room rates (ARR) during July and August and an occupancy rate (OCC) of 72%. This performance is projected to boost revenue per available room (RevPar) by about 2%. The main growth drivers are hotels outside of Bangkok, which are seeing double-digit gains, as well as the company’s Osaka property, which is benefitting from demand related to the World Expo.
Restaurant Segment: CENTEL’s restaurant operations are also expected to improve in Q3, despite the low season for tourism. Japanese restaurant brands under its portfolio are providing a key lift, as same-store sales (including joint ventures) grew 1% year-on-year in July, with total sales (also including JVs) up 9% from the previous year.
The analyst highlights that CENTEL is likely to benefit from improved political stability, which may support a broader economic recovery in Thailand in the second half of the year. The anticipated government revival of the “Half-Half” co-payment stimulus program is another positive, especially since restaurant sales account for about 50% of CENTEL’s total revenue. The company is also expected to see profit growth in 2025, aided by these tailwinds and with the approach of the peak travel season in the fourth quarter.
CENTEL’s restaurant sales in 2025 are set to accelerate on continued branch expansion among core brands and the introduction of new brands. With these prospects in mind, Phillip Securities (Thailand) maintains a ‘Buy’ rating on CENTEL, setting a target price of THB 37.75 per share.
