DUSIT’s third-quarter results show a rebound in hotel business as occupancy rates rise in Thailand and overseas
Company’s readjusted business plan, including the introduction
of four new pillars of ‘Dusit Graciousness’, aims to leverage shifting
industry trends to deliver sustainable revenue growth group-wide.
Bangkok 16 November 2021: Dusit Thani Public Company Limited (DUSIT), one of Thailand’s leading hotel and property development companies, has posted its financial results for 3Q21 (July-September), showing a net loss of 302 million baht, but indicating an upward trend compared to 2Q21 and the same period of last year.
The company’s third-quarter revenue compared to total takings in the first nine months of the year, which stood at 896 million baht, also reflects an improvement in hotel business, with domestic occupancy rates rising thanks to the Phuket Sandbox project, which launched as a pilot project in July.
An uptick in occupancy at Dusit Hotels and Resorts outside of Thailand, and the company’s asset optimisation strategy, also contributed to the YoY improvement.
Ms Suphajee Suthumpun, Group Chief Executive Officer, DUSIT, said the rebound in hotel business comes on the back of more widespread vaccination globally, the development and distribution of more effective medicines, and the easing of travel restrictions in many destinations worldwide, including Thailand.
“To leverage the Phuket Sandbox project, we had prepared Dusit Thani Laguna Phuket resort well in advance, which resulted in a much higher occupancy rate in 3Q21,” said Ms Suthumpun. “The relaxation of domestic lockdown measures in Thailand in early September also encouraged people to start travelling, which led to a notable improvement in occupancy at Dusit Thani Hua Hin. Overseas, our properties also fared better in the third quarter, especially Dusit Thani Manila, Dusit Thani Maldives, and properties we manage in the Middle East.”
DUSIT’s third-quarter results were also supported by the company’s Asset Optimisation strategy, which included the sale and manage back of Dusit Princess Chiang Mai hotel to boost liquidity and generate long-term revenue and profit from the property.
While hotel business improved in the third quarter, DUSIT’s hospitality education remained weak as its colleges were temporarily closed in line with pandemic-related restrictions to protect students from COVID-19. The group’s food business was similarly impacted, with stringent restrictions on dining at standalone restaurants and hotel outlets reducing overall capacity and profitability.
To counter the impact of restrictions on its various businesses, DUSIT continued its prudent financial management, including rigorous cost control and adjusting investment plans by delaying new investments and capital expenditure (CAPEX).
The group also adjusted its short, medium and long-term business plans in line with the changing situation – such as introducing pop-up businesses to drive non-room revenue – and began evolving its offerings in line with shifting global trends, all while optimising its operations around total revenue generation.
Alongside introducing Devarana Wellness, a new group-wide wellness concept designed to leverage the fast-growing wellness market in Thailand and overseas, the company introduced four new pillars of ‘Dusit Graciousness’ to ensure its properties and businesses can suitably cater to accelerated trends and ultimately achieve long-term success.
The four pillars include:
- Service: Delivering personalised and gracious service that directly responds to customers’ needs.
- Well-Being: Delivering wellness experiences beyond the spa to promote physical and mental health.
- Locality: Uniquely linking guests with the local community to bring enduring value to all stakeholders.
- Sustainability: Renewed focus on having a positive social, economic, and environmental impact.
“While consumers are expected to regain confidence in travel, their needs and expectations have shifted dramatically during the global lockdown, and there is still much uncertainty surrounding when business will fully return,” said Ms Suthumpun. “As such, our company, like many others, has had to rethink our capabilities to enhance our resiliency and deliver not only short-term financial improvement, but also long-term value creation through innovation, efficiency, agility and organisational and product enhancement. With this in mind, we will continue to proceed with caution by closely monitoring the situation and doing our best to minimise the impact on our business while seeking new ways to create value.”