The Erawan Group (ERW) Q3 2026 earnings summary

Executive summary

• 3Q26 revenue rose 12% YoY to THB 2,001m, EBITDA increased 30% to THB 628m, and normalized net profit reached THB 192m, up 237%.

• Excluding earthquake-related items, 3Q26 revenue, EBITDA and net profit grew 8%, 10% and 49%, respectively; 9M26 growth was 6%, 5% and 19%.

• 9M26 revenue grew 7% to THB 6,084m, EBITDA rose 11% to THB 1,964m and normalized net profit increased 43% to THB 663m.

• Hotel performance outpaced industry benchmarks, supported by rate optimization, customer-mix management and expansion in growing source markets.

Financial highlights

• 3Q26 operating income was THB 1,915m (+7%); total income was THB 2,001m, including THB 86m of other income with earthquake insurance compensation.

• 3Q26 operating profit rose 54% to THB 339m; 9M26 operating profit increased 13% to THB 1,121m.

• 3Q26 finance costs fell 16% to THB 129m; 9M26 costs declined 14% to THB 402m, or 9% including the one-time prepayment fee.

• Normalized net profit margin was 9.6% in 3Q26 versus 3.2%; 9M26 margin was 10.9% versus 8.2%.

Outlook and guidance

• FY26 revenue growth target is 6% YoY: 5% for Luxury to Economy hotels and 10% for budget hotels; 9M performance was on track.

• 4Q26 total occupancy was reforecast at 81% (-1% YoY), ARR at THB 1,971 (+2%) and RevPAR at THB 1,590 (+1%); total-room revenue growth was forecast at 6%.

• High-season demand from long-haul travelers and events, including the IMF/World Bank Annual Meetings and Tomorrowland Thailand, was expected to support ARR, especially in Luxury and Midscale.

• Priorities include dynamic pricing, customer-mix management, cost control, financial discipline and prudent liquidity management; Chinese market recovery and softer THB were cited as tailwinds, with slow domestic demand and competition as headwinds.