According to KGI Securities (Thailand), the five Thai major hotel operators under its coverage posted combined 2Q26 core earnings of THB 3.95 billion, marking a 4% increase year-over-year and a significant 50% rise quarter-over-quarter. This represented 40% of KGI’s full-year forecast, beating both the brokerage’s and consensus estimates.
Earnings were supported by higher-than-expected EBITDA margins and a notable reduction in interest expenses, which fell by 8–17% year-over-year for most operators except Minor International (MINT), which faced higher debt levels. Deleveraging remained a central strategy, helping to lift core earnings margins across the board.
Among individual companies, Central Plaza Hotel (CENTEL) led the pack with a 69% jump in core earnings, followed by The Erawan Group (ERW) at 16% and Asset World Corporation (AWC) at 11%. MINT saw a more modest growth of 3%, while S Hotels and Resorts (SHR) reported a larger-than-expected loss due to increased war-related impacts.
Looking ahead, KGI sees positive momentum continuing into the third quarter, particularly for Thailand’s tourism sector. International arrivals to Thailand were down 2.9% year-over-year at 20.32 million, but the trend is improving, with August data showing a rebound in long-haul markets such as Europe, the Middle East, and East Asia. The share of long-haul tourists is rising, now at 33% versus 23% in 2019—an encouraging sign for hotel operators, with this segment accounting for up to 80% of hotel customers.
A strong recovery in revenue per available room is expected in 3Q26, with sector-wide growth moving from -10% to +4% year-over-year in 2Q26, and several operators poised for double-digit RevPAR increases. AWC and CENTEL are projected to lead, while the recovery remains broad-based across Thailand, the Maldives, and Europe. After prioritizing occupancy in the first half by lowering room rates, KGI expects that operators will refocus on room-rate growth in the second half, supported by seasonality and major events.
As a result, KGI maintains its ‘Overweight’ rating on the hotel sector, identifying AWC (Target Price at THB 3.60), CENTEL (THB 49.00), and ERW (THB 4.30) as top picks, with continued ‘Outperform’ recommendations on MINT (THB 30.00) and SHR (THB 1.90).
