The Erawan Group (ERW) Q1 2026 earnings summary

Executive summary

• Achieved record high first-quarter performance with 6% YoY growth in normalized total revenue and EBITDA, and 12% YoY growth in normalized net profit, driven by occupancy-led strategy, diversified portfolio, and disciplined cost management.

• Strong recovery in Chinese and European markets offset softer Southeast Asian trends; domestic travel remained robust.

• Opened first HOP INN in South Korea and two new HOP INN hotels in Thailand, expanding total hotel count to 106 with 12,578 rooms.

• Portfolio to expand with 9 new hotels opening in 2026, including 8 in Thailand and 1 in South Korea.

Financial highlights

• 1Q26 normalized total revenue: THB 2,255 million (+6% YoY); normalized EBITDA: THB 835 million (+6% YoY); normalized net profit: THB 388 million (+12% YoY).

• EBITDA for the group was 906 million baht, up 7% YoY; Luxury to Economy hotel EBITDA at 660 million baht (+5% YoY), Budget hotel EBITDA at 246 million baht (+11% YoY).

• Gross profit margin improved to 61.5% from 60.7% YoY.

• Finance costs declined 12% YoY to 140 million baht, with total finance costs (including prepayment fee) down 5% YoY.

• Luxury to economy segment revenue up 2% QoQ and 5% YoY; budget segment revenue up 11% YoY.

Outlook and guidance

• 2026 revenue growth targets: Group +9%, luxury to economy +7%, budget +14%.

• Focus on Asian market recovery, group business mix expansion, and cost management.

• 2Q26 guidance: Group occupancy 75%, ARR THB 1,684, RevPAR THB 1,259.

• 13 projects under development, with investment focus on Midscale to Economy hotels and ongoing renovations.