Central Plaza Hotel Public Company Limited (SET: CENTEL) reported a robust 69% surge in net profit for the second quarter of 2026, reaching THB 176 million. Total revenues edged up 2% year-on-year to THB 5,968 million. While topline growth remained modest, the company’s bottom line was significantly bolstered by aggressive cost management and rebounding performance in key international markets.
The Hotel Business, representing 44% of total revenue, saw revenues rise 3% to THB 2,612 million. Meanwhile, the overall Revenue per Available Room (RevPAR) declined 10% year-on-year, primarily due to a 61% RevPAR collapse in Dubai caused by regional geopolitical tensions. Conversely, the Maldives segment delivered a standout performance with RevPAR soaring 69% year-on-year, driven by the ramp-up of new properties.
The Food Business contributed 56% of revenue, with sales rising 2% to THB 3,356 million. Despite flat same-store sales growth, the segment’s net profit jumped 18% year-on-year to THB 228 million. Management attributed this to the strategic closure of non-profitable outlets and improved cost efficiencies, which offset the impact of the government’s “Thai Chuay Thai Plus” campaign.
Core earnings were driven by operational improvements, though reported figures were impacted by non-recurring items. These included a THB 498 million reversed impairment related to the Centara Osaka joint venture, which was largely neutralized by a THB 441 million foreign exchange loss on the return of that investment.
CENTEL’s liquidity remains stable, with the current ratio improving to 0.8x from 0.6x at year-end 2025, while its interest-bearing debt-to-equity ratio sits at a manageable 1.3x.
Management maintains a positive trajectory for 2026, targeting total hotel revenues between THB 14.2 billion and THB 14.5 billion. Strategic growth initiatives include the full-year contribution of the newly opened Centara Life Osaka and the continued ramp-up of renovated flagship resorts in Pattaya and Phuket.
For the food business, management has set a 2026 revenue target of THB 18.5 billion to THB 18.7 billion (excluding Lucky Suki), fueled by an anticipated 10% increase in Total System Sales. To drive this growth, the company plans to add 75 to 85 new outlets—representing a 5-6% expansion—with a strategic focus on high-margin brands.
