The Erawan Group (ERW) Q4 2025 earnings summary

Executive summary

• Q4 2025 delivered resilient performance with normalized revenue and net profit both up 1% YoY, supported by strong demand from Europe, Middle East, India, and robust domestic travel in the Philippines and Japan.

• EBITDA margin improved to 38.0% in Q4 2025, reflecting disciplined cost management and operational efficiency.

• Budget segment outperformed, offsetting softer demand in luxury and economy segments.

• Diversification into smaller European, Asian, and Middle Eastern markets supported resilience amid weak Chinese demand.

Financial highlights

• Q4 group revenue: THB 2,260 million (+1% YoY); EBITDA: THB 860 million (+2% YoY); net profit: THB 374 million (+1% YoY); EBITDA margin: 38.0%.

• Full-year 2025 revenue: THB 7,940 million (flat YoY); EBITDA: 1% below last year; net profit: THB 838 million (-8% YoY).

• Budget segment Q4 revenue grew 16% YoY, with EBITDA margin at 42.6%.

• Group total assets increased to 26,468 MB as of Dec 2025; cash and equivalents rose to 1,894 MB.

• Debt-to-equity ratio improved to 1.2x, well within covenant limits.

Outlook and guidance

• 2026 revenue growth targeted at 9% (7% for luxury to economy, 14% for budget segment).

• Q1 2026 forecast: group occupancy at 82%, economy to luxury at 87%, budget at 79%; RevPAR growth of 4% YoY for group, 1% for HOP INN.

• 2026 pipeline includes nine new HOP INN hotels (eight in Thailand, one in Korea), and two non-HOP projects in Bangkok.

• Key tailwinds: potential Chinese market recovery, Thai political stability; headwinds: geopolitical risks, strong THB.