Performance reflects company’s strategy to expand and diversify its business portfolio to mitigate risk
Dusit Thani Public Company Limited (DTC) has reported its 2018 financial results including THB 290 million net profit and 5,565 million total revenue. The profit represents an 8.6% increase on the THB 267 million posted in 2017.
Reflecting the strength of DTC’s business strategies, the results were achieved despite non-recurring expenses in relation to the redevelopment and temporary closure of the flagship Dusit Thani Bangkok Hotel, such as special compensation for hotel staff, and absence of revenue from Dusit Princess Korat, which was divested in 2017.
Ms Suphajee Suthumpun, Chief Executive Officer, DTC, said the company showed satisfactory performance in 2018 and that the growth in net profit was driven by the implementation of a three-pronged strategy to achieve sustainable and profitable growth – namely balance, expansion and diversification.
“DTC actively explored investment opportunities throughout 2018 to expand our lines of business and diversify risk,” she said. “This resulted in a variety of businesses, with the hotel business at the core.
“To grow our customer base beyond our full-service, core hotel brands – Dusit Thani, dusitD2, Dusit Princess and Dusit Devarana – in 2018, we expanded into a new area of the lodging spectrum by introducing ASAI Hotels, an affordable lifestyle brand designed to link curious, millennial-minded travellers with authentic local experiences in vibrant destinations worldwide.
“We also expanded into the luxury segment with an investment in Elite Havens, the leading provider of high-end vacation rentals in Southeast Asia, paving the way for our entry into integrated luxury villa management and rental business across Indonesia, Sri Lanka, the Maldives, Japan, and Thailand.
“Both of these moves will ultimately expand our target customer base by offering broader experiences for our guests.”
In 2018, DTC also strengthened its presence in the food industry by establishing Dusit Foods Co., Ltd, and positioning it as another core business of the company. The subsidiary subsequently invested in NR Instant Produce Co., Ltd. (NRIP), a manufacturer and exporter of ready-to-eat food, seasonings, sauces, beverages and fruit juices. Dusit Gourmet Co., Ltd, a joint venture with NRIP, was then established to support the creation and distribution of Dusit-branded food products.
To enhance DTC’s presence in the catering business, Dusit Foods recently invested in Epicure Catering Co., Ltd., a leading provider of quality food services to major international schools in Thailand, Vietnam, and Cambodia.