CENTEL Expects Strong Second-Half Performance Driven by Domestic Hotel Recovery
Central Plaza Hotel Public Company Limited (SET: CENTEL) is anticipating that its financial performance for the second half of the year will significantly surpass the results achieved in the first half, according to Mr. Gun Srisompong, the company’s Chief Financial Officer and Vice President of Finance and Administration.
This optimistic outlook is primarily anchored in the robust growth of the revenue per available room (RevPAR) within the domestic hotel business segment.
The recovery of the Thai tourism sector, specifically the return of both international visitors and sustained local travel, is directly fueling this improvement in RevPAR, a key industry metric.
This increase suggests that CENTEL’s hotels in popular Thai destinations are achieving both higher occupancy rates and improved average daily rates (ADR).
The domestic market’s strength is providing a stable and reliable foundation for the company’s overall earnings trajectory.
Furthermore, the company’s international hotel business is also showing promising signs of advancement, contributing to the positive forecast.
While the domestic market is leading the charge, the slow but steady improvement in global travel and the performance of CENTEL’s overseas properties are expected to add incremental gains to the bottom line in the coming months.
The combination of rebounding domestic tourism and advancing international operations creates a powerful synergy that should ensure the second half of the fiscal year is materially stronger than the first.
The improvement is not limited to the hospitality sector alone, as the company’s food business segment is also experiencing a notable recovery, adding another layer of resilience to the outlook.
Food Business Recovery and Same-Store Sales Growth
In parallel with its recovering hospitality segment, CENTEL’s food business has shown resilience and a healthy recovery trajectory, primarily supported by continued growth in its same-store sales figures.
The food business, which operates a diversified portfolio of popular quick-service restaurants and other dining concepts, is a crucial and complementary part of CENTEL’s overall operations, providing revenue streams that often stabilize during periods of hospitality volatility.
The continued growth in same-store sales is a particularly strong indicator of operational health, demonstrating that existing outlets are successfully attracting more customers and generating higher revenue year-over-year, a metric that accounts for organic performance rather than simply the addition of new outlets.
This recovery suggests that consumer confidence is returning and spending on dining out has normalized or increased following any prior market disruptions.
The focus on optimizing existing locations, coupled with strategic marketing and menu innovations, has allowed the food division to effectively rebound.
This growth is essential for the overall CENTEL group, as it hedges against potential seasonal or external risks that might affect the hotel sector.
The success of the food business in maintaining a positive sales momentum provides a solid confirmation of the company’s successful multi-segment strategy and its ability to capture rebounding consumer demand across various consumption categories.
Outlook: Driving Financial Performance Through Synergies
CENTEL’s strategy for outperformance in the second half relies heavily on capitalizing on the synergistic recovery across both its hospitality and food segments, positioning the company for a more profitable year overall.
The anticipated outperformance in the latter half of the year is not just a function of isolated segment growth but a result of the inherent synergies between the hotel and food divisions within CENTEL.
Increased hotel occupancy, driven by the strong domestic RevPAR growth, naturally translates into higher demand for the company’s food and beverage outlets located within and near its properties, further boosting the food business’s revenue.
This cross-segment benefit enhances the profitability of both divisions simultaneously.
Mr. Srisompong’s confidence is rooted in the belief that the continued strength in domestic travel, coupled with gradual international market normalization, will sustain the high RevPAR trend.
The operational improvements and cost optimizations implemented across both the hotel and food segments throughout the previous challenging periods are now expected to multiply the impact of higher sales, leading to disproportionately better margins.
This dual engine of recovery—hospitality driven by tourism and food driven by organic sales growth—provides a robust mechanism for CENTEL to surpass its first-half results and potentially achieve a highly profitable conclusion to the current fiscal year.
This forward-looking assessment emphasizes operational efficiency and market recovery as the central pillars of the expected financial acceleration.
