Central Plaza Hotel Public Company Limited, or CENTEL, reported a normalised profit of 176 million baht for the second quarter of 2026, beating analyst and market expectations by 54% and 66% respectively, driven by better-than-expected EBITDA margin and lower finance costs. The hotel business posted core revenue of 2.5 billion baht, down 30% quarter-on-quarter but up 5% year-on-year. RevPar excluding joint ventures stood at 3,400 baht per night, down 37% quarter-on-quarter but up 1% year-on-year. While the Japan hotel portfolio fell 46% year-on-year against a high base from the previous year's World Expo, the Thailand market rose 6% year-on-year and the Maldives delivered standout growth of 69% year-on-year. However, share of profit from hotel joint ventures in Dubai was impacted by the war, resulting in the hotel business reporting a loss of 52 million baht in Q2 2026, an improvement from a loss of 90 million baht in Q2 2025 due to lower finance costs. The food business recorded core revenue excluding joint ventures of 3.3 billion baht, up 4% quarter-on-quarter and 2% year-on-year, with net profit of 228 million baht, down 2% quarter-on-quarter but up 18% year-on-year, helped by closure of unprofitable outlets and better cost management. The company slightly lowered its 2026 guidance for the hotel business including joint ventures, now expecting RevPar of 4,200 to 4,400 baht per night, representing a decline of 2% to growth of 3% year-on-year, and revenue growth of 3% to 5% year-on-year, down from the previous forecast of 5% to 7% growth. For the food business, it maintained its outlook for flat same-store sales growth, total system sales growth of 10% year-on-year, and 75 to 85 new store openings. Yuanta Securities' research team maintained its estimates and buy recommendation with a fair value of 45.00 baht, viewing the earnings beat and potential for upward estimate revisions as positive catalysts for the stock.
Central Plaza Hotel Public Company LimitedQ2 profit beat expectations by 54%, driven by better EBITDA margin and lower finance costs.
