Erawan expects profit to grow along with tourism
Erawan Group preliminarily estimates its revenue from its hotel and space-rental businesses to grow 15 per cent this year, the same as last year, and its net profit to be higher, thanks to the continuing rise in visitors to Thailand.
Krailuck Asawachatroj, chief financial officer, said yesterday that consolidated revenue last year was Bt4.30 billion. Hotel revenue increased 17 per cent to Bt4.12 billion.
Erawan plans to raise its room rates gradually by an average 6 per cent this year from Bt5,000 per night for premium rooms, Bt2,000 for average rooms and Bt1,000 for economy rooms.
Tourism is likely to keep expanding thanks to domestic political stability, while economic factors are unlikely to have any impact on the industry.
This year's focus is the hotel business and other investment. As part of its 2011-15 strategic plan, it will acquire three- and four-star hotels to expand assets. The group has invested more than Bt10 billion over the past seven years.
As part of its return-enhancing policy, it has appointed Siam Commercial Bank as the financial adviser, underwriter and fund manager for the Erawan Hotel Growth Property Fund, which will initially invest in the Ibis Phuket Patong and Ibis Pattaya properties.
An application for the fund's initial public offering has been filed with the Securities and Exchange Commission and the fund is expected to be launched next quarter.