SET-listed Central Plaza Hotel Plc (Centel) posted third-quarter net profit growth of 14.5% to 368.5 million baht, with total revenue rising 2.9% year-on-year to 4.85 billion baht.
Mr Suthikiati says higher domestic consumption drove food sector growth.
Chairman of the board Suthikiati Chirathivat said the revenue increase was driven by the food business as improved domestic consumption and more promotions spurred growth in same-store sales.
Hotels generated 2.09 billion baht in revenue in the third quarter, with greater revenue for Thai hotels and less in Maldives amid intense competition in that market.
The food business posted third-quarter revenue of 2.76 billion baht, up 5.3% year-on-year.
The hotel business is expected to continue growing in the fourth quarter, especially those in the provinces that can increase their room rates during high season.
Last year Centara Grand Beach Resort Phuket shut down for three weeks in November to fix damage from flooding, setting a low base.
Hotel business operations for its Bangkok and Maldives properties have revived, he said. Despite the slowdown in the meetings and seminars business for its Bangkok hotels in October, the sector looks positive for November and December, said Mr Suthikiati.
The company's Maldives hotels posted negative revenue per available room, but the trend is positive when compared with the first half of the year.
The food business suffered a slowdown during October because of the vegetarian festival, but it is expected to rebound in November and December as a result of various stimulus measures initiated by the government to boost tourism revenues as well as overall improved domestic consumption.
Another reason for optimism going forward is sustained sales promotion campaigns by food service operators together with the ongoing planned expansion of almost 40 new quick-service restaurant outlets in the fourth quarter.
As such, these positive factors will support continuing growth for same-store sales and systems sales for the food business, he said.
Mr Suthikiati said in 2018 the company's hotel business will focus on overall growth from increasing average room rates, which should drive up the profit margin.
CENTEL shares closed yesterday on the Stock Exchange of Thailand at 46.75 baht, up 1.25 baht, in trade worth 144.8 million baht.
