The Erawan Group (ERW) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue grew 4% year-over-year to THB 1,828 million, driven by occupancy-led strategy, cost discipline, and strong Chinese and Indian demand.

• Normalized EBITDA rose 1% to THB 502 million, and normalized NPAT increased 31% to THB 83 million, with margin improvement to 4.5%.

• The US-Iran conflict and other geopolitical uncertainties temporarily disrupted international travel, but recovery was evident by June, with a shift to short-haul and domestic travelers.

• Ongoing expansion in Asian markets, with portfolio growth and reactivation of activities targeting Europe and the Middle East.

• Grand Hyatt Erawan Bangkok began a major renovation in May 2026, targeting 70% completion by December and full completion by Q2 2027.

Financial highlights

• 2Q26 normalized total revenue: THB 1,828 million (+4% YoY); normalized EBITDA: THB 502 million (+1% YoY); normalized NPAT: THB 83 million (+31% YoY); reported NPAT after prepayment fee: THB 72 million (+14% YoY).

• 6M26 normalized total revenue: THB 4,084 million (+5% YoY); normalized EBITDA: THB 1,337 million (+4% YoY); normalized NPAT: THB 472 million (+16% YoY).

• Budget segment 2Q26 revenue: THB 535 million (+8% YoY); EBITDA margin: 37.8%.

• Gross profit margin in 2Q26: 55.3%.

Outlook and guidance

• 2026 revenue growth target revised to 6% (from 9%), with luxury-to-economy at 5% and budget at 10%, due to Q2 challenges and weaker long-haul demand.

• Q3 expected to improve from late July, with strong Q4 bookings driven by Chinese and Middle East markets.

• Focus on Asian market expansion, ADR recovery, cost discipline, and ongoing hotel renovations and expansions.

• Six new HOP INN hotels planned for opening in Thailand in 2H26; 14 hotels under development.