Central Plaza Hotel Public Company Limited, or CENTEL, reported second-quarter 2026 core profit of 1.077 billion baht, up 35% from a year earlier and 37% from the previous quarter, exceeding market expectations by 24%. The strong performance was driven by robust gross margins, particularly in the food business which delivered standout results that beat forecasts. In the hotel business, revenue per available room excluding Dubai rose 1% year-on-year but fell 37% quarter-on-quarter due to seasonality in Thailand and the Maldives. The new hotel in the Maldives narrowed its loss to 60 million baht, down from a loss of 153 million baht in the second quarter of 2025. The food business saw same-store sales hold steady compared to a year ago, despite pressure from the Thai Chuay Thai Plus program. Overall gross margin came in at 41.9%, above the analyst estimate of 40.8%, thanks to efficient hotel cost management and containment of food costs, along with a 12% year-on-year decline in interest expenses. Analysts raised their 2026 and 2027 core profit forecasts by 5% and 3% respectively, resulting in a projected 2026 net profit of 2.28 billion baht, up 21% from the prior year. Third-quarter 2026 core profit is expected to grow both year-on-year and quarter-on-quarter, with advance bookings indicating that revenue per available room excluding Dubai will increase 12% from a year earlier. The recommendation remains buy, with the target price raised to 48 baht from 42 baht, based on discounted cash flow methodology.
Central Plaza Hotel Public Company LimitedCore profit surged 35% beating forecasts, with raised target price and buy recommendation.
