Thai hotel stocks buoyed by govt’s discount plan
The price of hotel stocks rose sharply today (May 26), buoyed by expectation of the third phase of lockdown easing as well as government plans to stimulate tourism with big discounts on hotel rooms.
As of 11.15am today, the Erawan Group (ERW) stock price was up 11.88 per cent or Bt0.38 to Bt3.58, Minor International (MINT) was up 11.49 per cent or Bt2 to Bt19.40, and Central Plaza Hotel (CENTEL) increased by 11.06 per cent or Bt2.40 to Bt24.10.
Therdsak Thaveeteeratham, executive vice president at Asia Plus Securities, said that hotel stocks were lifted by a government move to hand out coupons for discounts of up to 50 per cent on hotel rooms to boost tourism amid hopes that the third phase of lockdown easing is about to begin.
The government announced last week that the next phase of restrictions were set to be lifted on June 1.
“These positive sentiments will boost economic activities and encourage tourists to travel,” he said.
He expects these factors to boost hotel stocks in the short term, as hotels are expected to suffer losses over the whole year due to travel bans and other virus-related restrictions.
“We expect foreign investors to return to Thailand in the fourth quarter of this year,” he said. “Therefore, we advise investing in hotel stocks for short-term speculation.”
