Asset World, one of Thailand’s largest hospitality and property developers, launches major expansion after ‘achieving 5 new highs in 2023’

Construction News
Wallapa Traisorat

Asset World, one of Thailand’s largest hospitality and property developers, launches major expansion after ‘achieving 5 new highs in 2023’

Asset World Corp (AWC), one of Thailand’s largest hospitality and property developers, has set an ambitious target this year of exceeding 36 billion baht in asset value, including the launch of 18 new operating projects, its CEO said earlier this week.
The strategy follows the company’s strong operating results in 2023, with total revenue of 19.011 billion baht, up 30.9% year on year and exceeding pre-Covid 2019 levels.

The new operating projects, with total investment of over 19 billion baht, will cover all business units, both hospitality and commercial, she said.

“Three significant projects have been approved by the board of directors and are ready to be presented to shareholders. These projects include high-quality properties in prime locations in two well-known tourist destinations: Bangkok and Chiang Mai,” she said.

Other new projects include the EA Rooftop at The Empire, positioned as one of the world’s largest rooftop F&B destinations, the Pantip Lifestyle Hub as a landmark for diverse entertainment activities, and the AEC Food Wholesale Pratunam, which will open later this year.

AWC will seek an additional 17 billion baht to support ongoing projects scheduled to begin this year. As a result, the total investment value for both new and ongoing projects is expected to exceed 36 billion baht this year, she said.

Meanwhile, as part of the growth-led strategy plan, she said the company aims to double the value of its asset portfolio within five years with a 126-billion-baht investment.

She said these investments would primarily target key tourist destinations in Thailand through partnerships with top-tier partners, guided by operational principles that include transforming real estate projects into expansive flagship mixed-use developments that blend hotels, office buildings, shopping malls, and community malls to comprehensively fulfil customers’ lifestyles.

“Each destination will feature food and beverage options, attractions, and a lifestyle market,” she pointed out.

According to its business strategic roadmap, the long-term flagship projects in the pipeline include the Weng Chinatown Destination Project, the Aquatique Destination Project, the Asiatique District Project, and the Lannatique Destination Project.

AWC’s strategic expansion plan follows the achievement of five new highs in 2023:

Net profit surged to 5.105 billion baht, up 28.2% year on year (YoY).
Net operating profit for business units reached 10.639 billion baht, up 26.6% YoY, with an average annual growth rate of 74% over the last four years.
The hospitality business revenue per available room peaked at 3,658 baht, representing a 54.8% increase YoY.
The group hotels’ average daily rate rose to 5,661 baht, up 17.4% YoY.
Capability to generate asset value growth in excess of 20 billion baht, with approximately 6 billion baht from new operating assets and more than 14 billion baht from approved investment projects.

“In 2023, AWC had a remarkable year, with strong growth in all business units, particularly hospitality. The company’s Bangkok-based hotels and those outside the capital, and luxury resorts all performed exceptionally well, benefiting from the increase in international arrivals in Thailand, particularly in the high-to-luxury segment of free individual travellers,” she said.

Currently, the total property portfolio is valued at 146.799 billion baht, a 52% increase from the pre-Covid-19 amount in 2019. Operating assets totalled 108.202 billion baht.