TRIS Rating, Thailand’s leading independent credit rating agency and strategic partner of S&P Global, announced both the company rating on Central Plaza Hotel PLC (as CENTEL), as well as on its existing senior unsecured debentures, at “A”.
The “A” credit rating reaffirms CENTEL’s resilient market position despite the challenging environment that has impacted the global hospitality industry, a sector that has been severely affected worldwide by the COVID-19 fallout. CENTEL’s swift COVID-19 response strategies, including extensive cost management measures implemented early on, are seeing positive impacts on the company’s earnings.
The TRIS Rating also reflects CENTEL’s strong liquidity management which will provide financial flexibility to overcome operational challenges in the next 12 – 24 months.
CENTEL’s robust QSR business is expected to recover faster than the hotel business and will be paramount to CENTEL’s earnings rebound.
“We hope that TRIS Rating’s latest credit rating reassures our investors and partners of CENTEL’s creditworthiness during this time of much uncertainty. By refocusing our resources, we are in a strong position to weather this industry downturn and position ourselves at the forefront for recovery,” said Thirayuth Chirathivat, CEO of Centara Hotels and Resorts.
In Thailand, the hotel industry is aggressively pushing ahead with recovery, backed by government stimulus campaigns to boost domestic travel, including the “Rao Tiew Duay Gun” (We Travel Together) programme. CENTEL operates 41 hotels across Thailand and overseas, and 1,060 quick service restaurant (QSR) outlets nationwide.
Listed on the Stock Exchange of Thailand (SET) in 1990, CENTEL expanded into the QSR business in 1994. As of August 2020, CENTEL consists of six hotel and resort brands – Centara Reserve, Centara Grand, Centara, Centara Boutique Collection, Centra by Centara and COSI – which all have favourable brand recognition in the domestic market. In 2019, the hotel business contributed to two-thirds of CENTEL’s EBITDA, with the rest from its QSR business which comprises 14 franchised and owned brands with 1,060 outlets nationwide.