Thailand Research Hotel 2H 2025 An overview review of Hotel market in 2H 2025 by Knight Frank Thailand knightfrank.co.th/research Thailand's tourism and hotel markets entered a phase of normalisation in 2025, with demand stabilising below prior peak levels amid continued supply growth and shifting traveller behaviour. While domestic travel provided an important demand buffer, softer international arrivals and limited pricing power placed pressure on hotel performance, particularly outside peak periods. Look ...

Financial Data and Key Metrics Changes - For Q1 2025, total revenue was approximately $48.3 million, representing a 3.8% increase year-over-year [14] - Hotel EBITDA for the quarter was approximately $12.9 million, reflecting a 4.5% increase compared to the same quarter last year [14] - FFO was approximately $4.5 million, a decrease of approximately $700,000 from the same quarter last year [14] - RevPAR increased by 6.4%, driven by a 6.4% increase in occupancy, with ADR remaining flat compared to the prior year [3][4] - Hotel EBITDA across the entire portfolio increased by 4.5% year-over-year, and when excluding a one-time benefit from a COVID-related grant, it increased by 9.4% [10] Business Line Data and Key Metrics Changes - The Doubletree Resort in Hollywood, Florida, saw RevPAR up 11.9%, primarily due to an 11.8% increase in occupancy [6] - Hotel Ballast in Wilmington achieved RevPAR growth of 6.5%, supported by a 3.5% increase in occupancy and a 2.9% increase in rate [7] - The Whitehall in Houston reported a 19.4% increase in RevPAR, driven by a 20.5% gain in occupancy [8] - The Doubletree Philadelphia Airport experienced a 34.3% increase in RevPAR, driven by a 38.7% increase in occupancy, despite a 3.1% decline in rate [9] Market Data and Key Metrics Changes - Urban markets showed pronounced gains, indicating stabilization in lodging fundamentals and normalization of demand patterns [4] - Group business and special events significantly contributed to performance, particularly in urban markets [4][20] - The company noted a pullback in government segment demand, particularly in the Washington DC submarket [21] Company Strategy and Development Direction - The company is advancing planning for two upcoming PIP renovations, with a total budget of $26.1 million for properties in Philadelphia and Jacksonville [11][12] - The company is taking a disciplined approach to managing its capital structure, with a focus on refinancing and extensions for upcoming debt maturities [12][36] - The portfolio is expected to outperform the broader market, with upscale and upper upscale assets positioned well [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the first quarter results, driven by occupancy recovery in urban markets and strong group business [20] - There is caution regarding macroeconomic uncertainty impacting near-term visibility in the lodging industry, with potential increased price sensitivity among transient guests [21] - Despite uncertainty, the company has not seen widespread cancellations and maintains a solid group booking pace [22] Other Important Information - The company has approximately $32.8 million in total cash, with $11.5 million in unrestricted cash [15][16] - The principal balance of outstanding debt is approximately $317.6 million at a weighted average interest rate of 5.88% [17] - The accrued balance on preferred dividends is approximately $21.9 million, with current payments being made [43][44] Q&A Session Summary Question: Renovation plans for the Philadelphia hotel - Management indicated that the reverse split timing is likely to occur close to the August 11 deadline, with preparations ongoing [26][27] Question: Business interruption insurance for Hotel Alba - Management clarified that while room revenue is down due to fewer guests, profitability is largely maintained through insurance coverage [28][30] Question: Refinancing of loans for Hollywood and Atlanta - Management discussed the likelihood of extensions and modifications for upcoming debt maturities, reflecting broader market trends [33][36] Question: Cash management regarding CapEx and refinancing - Management noted that they are evaluating cash needs against refinancing activities and have significant equity in other assets that could be leveraged [38][39] Question: Accrued balance on preferred dividends - Management confirmed that the accrued balance is approximately $21.9 million, with current payments being made [43][44]