Hotels in Thailand poised for 6% RevPar growth in 2019

Tourist visits will recover following the Phuket boat accident in last 2018.

Thailand’s hotel sector is slated for a 4%-6% RevPar growth in 2019 along with a rise in tourist visits which will boost the sector’s earnings recovery, according to a Maybank report.

International tourist visits will rise by 8%, with Chinese tourists projected to grow 11%, following a series of decline brought by the Phuket boat accident last 2018.

Top hotel operators The Erawan Group, Minor Int’l and Central Plaza, are expected to have a 22%, 20% and 7% earnings growth respectively in 2019.

However, tourists decline in 2018 could still reflect on hotels’ earnings growth in 4Q2018.

Central Plaza Hotel could have its earnings growth increase 5% YoY to US$16.9m amidst a further 2% decline in RevPar as the firm is still affected by Chinese tourists slowdown.

Meanwhile, Minor International’s earnings growth for the same period could be 3% YoY to US$54.2m. However, this would be mostly attributed to the 3% revenue per room (RevPar) growth of their overseas hotels whilst RevPar in Thai hotels is likely to remain flat.

Erawan Group could see earnings growth of 10% YoY to US$5.64m in 4Q18, following the renovation of JW Marriott. New sites for its Novotel and Ibis hotels would boost its revenue as well to 8% YoY.