SET-listed Charn Issara Development is confident it can achieve its revenue growth target this year, driven by the recovery of the tourism sector and the completion of two condo projects this quarter.
Chief executive Songkran Issara said revenue this year will likely exceed the 2.17 billion baht recorded in 2022 thanks to the tourism rebound.
“The Siam Paragon shooting has not had any effect on our hotels. There have been no cancellations,” he said.
“We have seen strong demand from an increase in Chinese tourists after Thailand allowed visa-free entry for them last month.”
In the first half of 2023, the company recorded 1.09 billion baht in revenue, an increase of 23% from 886 million baht in the same period last year.
Revenue from hotels rose by 28%, while that from residential development grew by 30%.
“The residential market picked up in the first half as the economic recovery boosted the sentiment of both homebuyers and investment buyers,” he said.
Revenue from hotels was driven by the soaring number of foreign travellers and the government’s We Travel Together scheme, which boosted domestic demand.
Last year, the company recorded 2.17 billion baht in total revenue, down by 5% from 2.3 billion baht in 2021.
The main reason was the drop of 20% in revenue from residential development business due to the economic slowdown.
In this quarter, the company completed construction on two new condo projects: The Issara Sathorn on Chan Road in Sathon district and Sasara Hua Hin in Khao Takiab, Prachuab Khiri Khan.
The Issara Sathorn, worth 2.5 billion baht, comprises 270 units, of which 60% have been sold, while Sasara Hua Hin, worth 1.5 billion baht, features 110 units, with 70% already sold. Both projects began unit transfers this month.
Mr Songkran said the company plans to launch three new residential projects worth a combined 8 billion baht in the fourth quarter as it remains confident about the economic recovery.