S Hotels and Resorts PCL, a leading hospitality investment and management company and the hospitality arm of Singha Estate
PLC (SET: S) has started to write a historic new chapter as it aims to exceed THB 10 billion in revenue for the first time in 2023 – an increase of around 20% compared to last year’s impressive figure of THB 8.7 billion. To achieve this, S Hotels & Resorts is leveraging the “3Ps” model, which will see it boost profit, expand its investment portfolio and protect the planet with sustainability projects. As a result, the company is expected to retain its position as the No.2 Thai hotel operator in terms of revenue for the second consecutive year. Following the full reopening of Thailand to international travellers, S Hotels & Resorts’ cluster of four properties in the kingdom is expected to contribute around 16% of the company’s total revenue in 2023, with a projected 60% year-on-year revenue growth. Revenue from the Maldives and UK is expected to grow 30% and 10% respectively, accounting for 31% and 36% of the company’s total. In terms of portfolio maximisation, the group will sell matured assets in the UK and use the proceeds, supplemented by an additional investment of around GBP 16 million, to renovate other high-potential assets. This is expected to enable ADR of GBP 90, an increase of approximately 10% compared to 2022. Other assets being developed include CROSSROADS Maldives, which will upgrade its retail stores, community gallery, picnic park, and marina, which will be able to accommodate super yachts. SO/ Maldives, the third private island resort at the project, is on track to open in Q4 2023. A comprehensive renovation at Outrigger Fiji Beach Resort will also be completed in Q4, and plans are in place to refurbish Thailand’s SAii Phi Phi Island Village and SAii Laguna Phuket in 2023 and 2024. The third “P” in S Hotels & Resort’s strategy is dedicated to protecting the planet. In line with Singha Estate’s vision of “sustainable diversity for sustainable growth,” and in harmony with the UN’s Sustainable Development Goals (SDGs), the company is aiming to make a difference in every destination in which it operates. This strategy has included installing solar panels on the roofs of resorts in Thailand and the Maldives and engaging in important marine conservation projects at its Marine Discovery Centres in both countries. Successful initiatives to date have included coral propagation and shark breeding & release programs. As a result of these and many other initiatives, S Hotels & Resorts’ properties in Thailand and Maldives have achieved the prestigious Green GlobeTM Certification. The company was also included on The Stock Exchange of Thailand’s “Thailand Sustainability Investment” list for 2022 and received a five-star corporate governance rating from the Thai Institute of Directors Association. Mr. Dirk De Cuyper, CEO of S Hotels & Resorts, commented: “The return of international tourists, coupled with the strength of our business strategy and our sales & distribution channels, have combined perfectly to help us attract tourists from all corners of the world. S Hotels & Resorts appreciates the importance of applying real-time digital technology platforms to support direct bookings, which will help the company to increase ADR and RevPAR significantly and consistently. This year, we expect occupancy across all portfolios to be around 75%. “Our operational results in 2022 exceeded the breakeven point resulting in a net profit. With our operations now running at full capacity again, 2023 will likely deliver an occupancy rate growth of 15% and drive significant profit growth, which can help the company to build a new foundation for future growth,” Mr. De Cuyper added.
