The Erawan Group (ERW) Q3 2025 earnings summary

Executive summary

• Q3 2025 saw a 13% year-on-year decline in international tourist arrivals to Thailand, mainly due to weak Asian markets, especially China, and regional tensions, partially offset by growth from India, the Middle East, and domestic tourism.

• Total group revenue for Q3 2025 was 1,789 million baht, down 4% year-on-year, with net profit at 57 million baht, a 54% decline, reflecting soft tourism demand and earthquake-related costs.

• The group focused on volume growth, cost control, diversification into new source markets, and targeted group bookings to maintain occupancy.

• Product enhancements, including The Naka Island renovation and upgrades at ibis and Mercure hotels, are expected to support future performance.

• ESG initiatives advanced, with recognition in the ESG100 List for the fifth year and participation in global sustainability assessments.

Financial highlights

• Q3 2025 group operating revenue was 1,789 million baht, down 4% year-on-year; EBITDA was 482 million baht, down 13% year-on-year, with a margin of 27.0%.

• Net profit for Q3 2025 was 57 million baht, a 54% decrease year-on-year; normalized net profit margin was 3.2%.

• For the nine-month period, revenue was flat year-on-year at 5,679 million baht, EBITDA declined 2% to 1,762 million baht, and net profit dropped 13% to 465 million baht.

• 3Q25 gross profit margin was 55.1% (vs 56.1% in 3Q24).

• Budget segment revenue grew 11-13% year-on-year in Q3 2025, but EBITDA margin contracted to 37.7%.

Outlook and guidance

• Full-year 2025 guidance revised: overall group revenue growth expected to be flat year-on-year (previously 3-5%), with luxury to economy segments down 5% and budget segment up 18%.

• Q4 occupancy expected at 81%, on par with last year, but average rate and RevPAR projected to drop 3-7% year-on-year.

• Ten new hotels are planned to open in Thailand in 2025, adding 789 rooms and supporting expansion plans.