S Hotels and Resorts PCL, a leading hospitality investment and management company and the hospitality arm of Singha Estate PCL, announced a significant 20% YoY increase in core operating profit for the third quarter of 2024, reaching 307.6 million baht.
This reflects the strong growth potential of the core operations, driven by the global resurgence of tourism, particularly in Fiji where hotels have seen full occupancy for almost the entire quarter. Additionally, the company’s strategic focus on elevating room quality and service standards has contributed to an 11% YoY increase in average daily rate (ADR) across its entire portfolio.
Despite short-term challenges this quarter, including the underperformance of SO/ Maldives in its first year of operation and fluctuating exchange and interest rates, SHR has witnessed promising signs of growth within its core business. Service revenue rose to 7,745.6 million baht, and with enhanced cost management, the company achieved a remarkable 30% growth in core operating profit for the first nine months of 2024, reaching 947.2 million baht—an impressive increase compared to the same period last year. This success highlights the company’s robust growth potential, fueled by the tourism industry’s upward trajectory. It is further attributable to the successful execution of a comprehensive and diversified business strategy, particularly proactive marketing initiatives that have attracted a larger and more diverse customer base. These strategies coupled with ongoing enhancements to core assets to meet the evolving needs of guests position the company well for future growth.
Another significant achievement for the company is receiving the Business Excellence Award for Outstanding Investor Relations at the SET Awards 2024, marking the third time and second consecutive year for this achievement. Additionally, the company maintained its 5-star rating or “Excellent CG Scoring” for corporate governance for the fourth consecutive year in 2024, a testament to its commitment to transparency, sustainability, good governance, and long-term shareholder value. These accolades solidify the company’s foundation for sustainable growth.
Mr. Michael Marshall, Chief Executive Officer, stated, “The performance in this quarter highlights the company’s resilience and potential, particularly the impressive 36% increase in RevPAR for Outrigger hotels in Fiji and the expansion of our customer base into new markets to mitigate off-peak season challenges at CROSSROADS Maldives. With these achievements and our ongoing efforts to reduce financing costs, which have already yielded positive results this quarter, we are well positioned to strengthen our competitiveness and profitability capabilities, driving future growth over the next 2-3 years.”
The company anticipates a strong finish to 2024, with even brighter prospects for 2025. Key drivers for this optimism include the peak season in Thailand and the Maldives, the potential for increased room rates and increased room availability at the newly renovated SAii Laguna Phuket property, which is expected to be completed ahead of schedule. Moreover, the decision to delay the renovation of SAii Phi Phi Island Village until 2026 will allow the company to maximise potential. Additionally, a focus on efficient cost management is expected to contribute to significant revenue and profit growth in 2025.
“2025 marks a pivotal year for SHR as we reap the rewards of our commitment to enhance the quality of our core assets over the past three years,” continued Mr. Marshall. “Our primary focus will be on optimising RevPAR across all market conditions, while delivering exceptional guest experiences to ensure sustainable profit growth for our portfolio.”
