Dusit Thani Public Company Limited (DUSIT), one of Thailand's leading hotel and property development companies, has reported its 2Q22 results, including total revenue of THB 1,408 million, a 78.5% increase on the same period of last year; EBITDA of THB 54 million, up 99 million YoY; and net loss of THB 258 million, a THB 118 million improvement over the same period of last year. Total revenue for the first half of the year stands at THB 2,174 million, up 14.5% YoY.
The results were driven mainly by an increase in core revenue from DUSIT's Hotel, Food, and Hospitality Education business units following the easing of pandemic-related restrictions in Thailand and overseas, and a strong return of travel and tourism business worldwide.
During 2Q22, DUSIT focused on enhancing the guest experience at all hotels and resorts to deliver not only short-term financial improvement, but also longer-term value creation by providing additional convenience, experience, and value for guests. This included significant enhancements of its longest-running properties in Thailand to ensure they are positioned to meet the lifestyle needs of all generations of travellers in the new normal.
The renowned Dusit Thani Hua Hin, for example, further enhanced its competitive advantage by officially unveiling its fully renovated guest rooms and suites; a redesigned pool and beachfront area; a new flexible meeting space, The Stable; a new beachside bar and grill, N?mada; and an integrated wellness and fitness centre, Devarana Wellness.
In 2Q22, DUSIT also continued to expand its offerings across the lodging spectrum through its subsidiary Elite Havens, the leading provider of luxury villa rentals in Asia, which responded to the global resurgence in travel demand by adding outstanding new properties across Thailand, Indonesia, and Japan to its meticulously curated portfolio of luxury havens.
At the end of 2Q22, DUSIT's portfolio comprised 332 properties, including 47 hotels and resorts, and 285 villas (12,063 rooms in total), strategically located across 16 countries.
DUSIT also bolstered its food business portfolio in Thailand in 2Q22 by concluding an agreement to acquire a 55% stake in Bonjour Bakery Asia Co., Ltd., which operates a state-of-the-art baking factory producing French-style pastry products, and its associated bakery franchise business comprising more than 50 branches across Thailand and China.
With normal life resuming and economic activities on an uptrend, DUSIT sees strong potential for growth in the food industry, and it plans to fully leverage its current and upcoming developments in food business to create new opportunities to generate revenue in the B2B and high-end markets.
"While we are confident that our core hotel business will only go from strength to strength now that travel restrictions are easing in most of the destinations where we operate, it is important that we continue our three-pronged strategic journey for balance, expansion, and diversification to secure new streams of revenue that can drive our growth and deliver value for shareholders while global hospitality business continues to recover," said Ms Suphajee Suthumpun, Group CEO, Dusit International. "Our expansion in food business is part of this strategic vision, and we look forward to leveraging our existing and upcoming operations in food business to maximise synergies, drive sustainable growth, and deliver new sources of stable, recurring revenue for our company."
To further strengthen its financial position for the new normal, in early August DUSIT issued perpetual debentures worth THB 1.5 billion for financial institutions and high-net-worth individuals. The offering is now fully subscribed.
"The success of the issuance of the debentures demonstrates the confidence of investors in DUSIT's business outlook and our strategy for sustainable growth across all our lines of business," said Ms Suthumpun. "Proceeds from the debenture will now be used to strengthen our capital structure and provide more financial flexibility to expedite the growth of our business and seize new opportunities as the market and tourists return."