SET-listed Central Plaza Hotel Plc (Centel) sees the Covid-19 break out as a short-term obstacle, with much better outcomes anticipated in the 2nd half.
Weapon Srisompong, assistant vice-president for financing and possession management, stated each crisis in the previous took no longer than one year.
Centel currently carried out expense control steps such as changing the size of short-term personnel and providing a la carte supper in some outlets rather of buffets to lower food waste.
The total tenancy rate in February plunged to 60% from 80-90% throughout the high season. However hotels in Phuket still tape-recorded 70% tenancy.
Mr Weapon stated if the infection is consisted of by June, income per readily available space (RevPAR) for the business’s hotels is anticipated to drop 10-15% year-on-year, while typical tenancy rate will plunge 10%, leading to a decrease in overall income of more than 15% this year.
Centel set a financial investment budget plan 18 billion baht for 2020-21, with 12 billion for hotels and 2.4 billion for the food section.
He stated the financial investment for the hospitality section will be divided into 2 parts: remodelling of existing hotels and growth in Thailand and other locations such as Dubai, the Maldives and Japan.
This year Centel prepares to open 8 hotels, consisting of 2 of its own residential or commercial properties in Thailand and Dubai.
Another 6 tasks under management contracts are set for Thailand, Myanmar, Qatar and Turkey.
In 2015 the business published overall income of 21.2 billion baht, down by 2.7% year-on-year, since of slow hotel efficiency, which represented 42% of the overall.
Net revenue dipped by 19.9% to 1.74 billion baht in 2019.
Centel reported 8.9 billion baht in income from the hotel company in 2019, down 8.9% year-on-year, while income from the food section increased 2.4% to 12.3 billion.
Since Dec 31, Centel has 76 residential or commercial properties with 14,758 spaces, of which 43 hotels have actually currently opened. Of that number, 87% remain in Thailand, 18 tasks are self-owned hotels with 4,476 spaces, while 25 hotels amounting to 3,617 spaces are under management contracts.
The tenancy rate for hotels in Thailand, that includes Centara Grand Beach Resort Samui and Cosi Pattaya Wong Amat Beach, closed at 76.8% in 2015, below 81.8% in 2018.
The RevPAR of hotels in Thailand likewise dropped 8.9% to 2,780 baht from 3,051 baht in 2018.