S Hotel and Resort Public Company Limited (SHR), a subsidiary of Singha Estate, is advancing its hotel business expansion in 2020 by constructing a multi-purpose meeting room at Outrigger Laguna Phuket Beach Resort and developing a high-end hotel on Island 3 in the CROSSROADS Maldives project.

Mr. Dirk Andre Lina, Chief Executive Officer of S Hotel and Resort Public Company Limited, revealed that despite the tourism industry being affected by various crises, including the ongoing COVID-19 pandemic, the company still has continuous investment plans to expand its hotel business in 2020. SHR will monitor market responses and travel advisories while assessing operational performance throughout the COVID-19 outbreak. Additionally, the company is preparing marketing strategies for the short, medium, and long term to respond to the tourism market's recovery after the crisis ends.

“We anticipate that tourists from key markets will spend significantly on travel after having to cancel trips and stay home for an extended period due to the COVID-19 outbreak. If we are well-prepared in terms of marketing strategies and services, we are confident that our hotels and resorts will be a preferred destination for travelers,” Mr. Dirk stated.

Hotels managed by SHR are currently facing challenges with cancellations in February and March due to the impact of the COVID-19 pandemic. The company understands customer needs and has a policy allowing customers to change from cancellations to rescheduling their stays.

Outrigger Laguna Phuket Beach Resort will construct a multi-purpose meeting room that can accommodate up to 350 people, expected to be completed in the first quarter of 2020 to meet diverse market demands, especially from the growing MICE segment in Phuket.

The development of a high-end lifestyle resort on Island 3 of the CROSSROADS project aligns with SHR's strategy to diversify its hotel portfolio. This is a joint venture between SHR and Wai Eco World Developer Pte (WEWD), an investor from Myanmar involved in various businesses, including jewelry, food and beverage, and manufacturing. The new resort will feature 80 water villa accommodations priced around $900-$1,000 per night, with construction expected to begin this year and operations to start in 2022.

Mr. Chai Rat Siva Phonpan, Chief Financial Officer of S Hotel and Resort Public Company Limited, stated that the company received $16.2 million from the sale of a 50% stake in Prime Locations Management 3 Ltd., the developer of the high-end lifestyle resort project on Island 3 of CROSSROADS, to WEWD in mid-February.

Mr. Chai Rat added that 2020 will be the year SHR recognizes full-year revenue from new hotels in the CROSSROADS Maldives project, namely SAii Lagoon Maldives, Curio Collection by Hilton, and Hard Rock Hotel Maldives. Additionally, the CROSSROADS project features a comprehensive recreational and entertainment center called “The Marina at CROSSROADS,” which includes a luxury yacht marina, beach club, restaurants, shops, conference facilities, and various recreational activities.

SHR aims to double its hotel business from 39 hotels and resorts with 4,647 rooms to 80 properties with over 8,000 rooms by 2025, representing an average growth rate of 15% per year.

In 2019, the company reported total revenue of 3.818 billion baht, a 48% increase from the previous year, and adjusted EBITDA of 1.133 billion baht, a 30% growth from the prior year. The average occupancy rate for hotels managed by the company in 2019 was 72%, with Outrigger hotels at 78%, CROSSROADS hotels at 34% (which began operations in September 2019), and hotels in the UK at 70%.