Thai Erawan to top estimates, outlook buoyant

BANGKOK (Reuters) - Thai hotel group Erawan ERAW.BK said on Monday it was optimistic about 2008 after a flat 2007, expecting revenues to rise more than forecast as it opened new hotels and filled more rooms.

The firm expected 2008 revenues to rise more than 30 percent from expected flat growth in 2007 dragged down by New Year's Eve bombs in Bangkok which scared off foreign tourists, company president Kasama Punyagupta told Reuters.

"We expect top line growth of more than 30 percent as we have a number of new hotels lined up," Kasama, 46, said in an interview.

The firm, which runs luxury hotels in central Bangkok including the Grand Hyatt Erawan and JW Marriott, was planning to open a six-star hotel on Phuket Island late next month and four budget hotels in tourist areas in mid-2008, he said.

In 2009, it will open a Holiday Inn and five small hotels.

"Over the next 24 months, we're going to spend 4.5-5.0 billion baht to open 10 or 11 hotels," Kasama said, adding the $137-152 million investment would come from warrants, cash flow and bank loans.

Kasama, who took the top post in 2004, gave no specific earnings forecast but two analysts polled by Reuters Estimates expected the firm to report a 27 percent rise in 2008 revenues to 4.13 billion baht, up from a forecast 3.26 billion in 2007.

They forecast a net profit of 527 million baht, up 18 percent from a 446 million baht forecast in 2007.

Erawan, valued at $317 million, operates hotels, office buildings and shopping centers. It competes with Central Plaza CENT.BK and Minor International MINT.BK, the largest listed hotelier which operates Four Seasons and Anantara hotels.