The Erawan Group (ERW) Q4 2024 earnings summary

Executive summary

• Achieved record high total revenue, EBITDA, and net profit in Q4 and full year, driven by strong tourism recovery, effective rate management, and diversified market contributions across Thailand, Philippines, and Japan.

• Q4 total revenue grew 18% year-on-year, EBITDA up 35%, and net profit up 65% year-on-year.

• International tourist arrivals reached 9.5 million in Q4, up 18% YoY, with domestic travelers at 7.1 million, up 5% YoY.

• Occupancy rates remained high, with group-level Q4 occupancy at 81%-83% and ADR/ARR growth of 11%-13% year-on-year.

• Growth was led by economy and midscale segments, with luxury also performing well.

Financial highlights

• Q4 revenue reached THB 2.228 billion, up 18% year-on-year; normalized EBITDA was THB 841 million, up 35% YoY (37.8% margin); net profit was THB 370 million, up 65% YoY (16.6% margin).

• Full year normalized total revenue was THB 7.917 billion, up 12% YoY; normalized EBITDA was THB 2.645 billion, up 19% YoY (33.4% margin); normalized net profit was THB 906 million, up 23% YoY (11.4% margin).

• Budget segment (Hop Inn) Q4 revenue: THB 495 million, up 56% YoY; EBITDA: THB 213 million, up 76% YoY (43% margin).

• EBITDA margin improved to 36%-37.8% in Q4 from 32% last year; full year margin rose to 31%-33.4% from 30%.

Outlook and guidance

• 2025 revenue growth guidance: Group +10%, luxury to economy +5-7%, budget +23% due to new openings.

• Estimated 2025 CAPEX: THB 3 billion, with 10 new Hop Inn hotels and one midscale property in the pipeline.

• Q1 expected to show growth despite softer Chinese demand; corporate and MICE segments to drive February and March.

• Growth expected to normalize after two years of double-digit increases.

• Focus on driving ARR, optimizing occupancy, and strengthening marketing to boost F&B revenues.