Apinya Ngamapichon, Chief Financial Officer of The Erawan Group Public Company Limited (SET: ERW), revealed at the Opportunity Day event that the company’s 2Q26 performance continued to grow amid volatility in the tourism sector. Total revenue reached THB 1,828 million, increasing by 4% from the previous year. EBITDA was THB 502 million, up 1%, while net profit before special items stood at THB 83 million, jumping 31%. Net profit was THB 72 million, up 14% year-on-year.
For 2026, the company has revised its total revenue growth target down to 6% from the original 9%, with estimated full-year revenue of around THB 8.4 billion. This reflects the slowdown of long-haul tourist arrivals due to the impact of ongoing wars. Revenue growth targets for the luxury to economy hotel group were adjusted from 7% to 5%, while for the budget or Hop Inn group, the target was trimmed from 14% to 10%.
Nevertheless, ERW views the outlook for the second half of the year as positive. In 3Q26, total revenue is expected to grow 7% YoY, with the luxury to economy segment forecast to rise 5%, driven by increased room rates in response to demand. For Hop Inn, including new hotel openings, revenue is expected to grow around 7%.
At the beginning of Q3, a clear recovery trend was recognized, as revenue per available room (RevPAR) in July for the overall group increased by 5% YoY, with the luxury to economy group up 8% and Hop Inn up 6%. For Q4, advance bookings are at levels similar to last year, and ERW anticipates an average occupancy rate of around 80% for the full year, focusing on increasing room rates to support revenue.
In addition, the second half of the year will be boosted by the World Bank meetings in Bangkok in October, which will support luxury, midscale, and economy hotels, as well as the Tomorrowland event in Pattaya, expected to propel room rates at all three of the company’s hotels in Pattaya.
Regarding the tourist market, ERW has noticed early signs of recovery among Chinese tourists, while the weakening baht is enhancing Thailand’s tourism competitiveness. Airline ticket prices are also becoming more stable. However, competition from other regional countries and risks from prolonged wars, leading to higher oil and travel costs, are still being monitored.
For the Hop Inn business, ERW is moving forward with continuous hotel expansion in both Thailand and abroad, with strong performance in Thailand, the Philippines, and South Korea. Meanwhile, Japan has faced increased competition as hotels that previously relied on Chinese tourists are now competing in other markets. There is also an impact from the appreciation of the baht when converting revenue to baht.
At the same time, ERW is renovating the Grand Hyatt Erawan Bangkok, comprising 380 rooms and meeting facilities, with an investment of approximately THB 500 million from May 2026 to 2Q27. The renovation will be phased, with partial shutdowns during the high season (Q4) and during the World Bank meetings, to increase the number of available rooms and minimize revenue impact.
For long-term plans under the JUMP+ program, ERW targets revenue of THB 10 billion by 2028, representing average annual growth of 7 – 10% from the 2025 base. In the first half of this year, 17 hotel projects were under development out of a target of 20 for this year. The company aims to maintain debt-to-equity ratio at 1.2 times, below the threshold of 1.7 times.
The plan to study a spin-off and initial public offering of the Hop Inn business remains in place, to strengthen the capital base and financial robustness, supporting hotel expansion and long-term growth ambitions.
