The Erawan Group Public Company Limited (SET: ERW) delivered a strong financial performance in the third quarter of 2026, posting a net profit after tax of THB 192 million—a 237 percent year-over-year surge from THB 57 million in 3Q25. Total revenue rose 12 percent year-over-year to THB 2,001 million, up from THB 1,789 million, supported by room rate optimization, disciplined customer mix management, and portfolio expansion despite a five percent decline in overall international tourist arrivals to Thailand.
Key Financial Highlights
- Net Profit: THB 192 million (+237% YoY; +49% YoY excluding earthquake-related items).
- Total Revenue: THB 2,001 million (+12% YoY; +8% YoY normalized).
- EBITDA: THB 628 million (+30% YoY), with EBITDA margin expanding to 31.4 percent from 27.0 percent in 3Q25.
- Earnings Per Share (EPS): THB 0.0393, up from THB 0.0116 in 3Q25.
Performance across the company’s primary operating divisions demonstrated significant pricing power. The Luxury, Midscale, and Economy segment generated THB 1,471 million in total operating revenue, representing an 11 percent increase YoY, while segment EBITDA climbed 39 percent to THB 436 million. Revenue per available room (RevPAR) for the luxury tier led portfolio performance with a 10 percent YoY increase to THB 4,769, driven by an 8 percent expansion in Average Daily Room Rate (ARR) to THB 6,668 per night.
Meanwhile, the Budget Hotel division (HOP INN) increased revenue by 13 percent YoY to THB 530 million and EBITDA by 14 percent to THB 192 million, opening two new locations in Thailand (Chonburi-Amata and Phetchburi) to bring total capacity to 108 hotels and 12,719 rooms.
Operating expansion and non-recurring items boosted top-line figures. Quarterly earnings included insurance compensation income from the 2025 earthquake, whereas 3Q25 absorbed repair costs. Excluding these insurance items, normalized net profit expanded 49 percent YoY, underscoring core operational strength.
Finance costs dropped 16 percent YoY to THB 129 million due to successful debt restructuring and lower interest rates. ERW closed 3Q26 with THB 989 million in cash and THB 11,302 million in available undrawn credit facilities. The debt-to-equity ratio remained stable at 1.3 times, well below the bank covenant cap of 2.5 times.
Management expressed confidence heading into the fourth-quarter peak tourism season, expecting strong tailwinds from long-haul Western travelers and major events such as the IMF/World Bank Annual Meetings in Bangkok. ERW remains on track to achieve its full-year total revenue growth target of 6 percent over 2025, supported by 16 properties currently under development in Thailand and overseas.
