Singha Estate is advancing its business for 2023 with the 'S EXCELS' concept, aiming to increase total revenue by 34% from last year to over 16.7 billion baht. In the residential sector, the company plans to launch 2 new brands with 5 projects worth over 10 billion baht. Meanwhile, in the hotel business, it is set to open SO Maldives, a luxurious 6-star hotel in the Crossroads Maldives project, targeting high-end tourists with a goal of achieving an all-time high occupancy rate of 75%. Revenue is expected to exceed 10 billion baht, and the industrial estate business is poised for significant growth with a doubling of land transfers.

  

Ms. Thitima Rungkwansiriroj, CEO of Singha Estate Public Company Limited, stated that the business plan for 2023 is crucial for Singha Estate. The company will employ the 'S EXCELS' strategy to achieve excellence across all dimensions, targeting all-time high profits in every business portfolio. This year, the company aims for total revenue growth of up to 34%, reaching 16.7 billion baht, while enhancing competitive capabilities and focusing on creating synergy among its four businesses. Collaborations with leading partners are expected to drive an average annual growth of 20% over the next three years, alongside plans for conservation in biodiversity-rich areas where the business operates, aiming for carbon neutrality by 2030. The total investment budget is set at around 6 to 7 billion baht, focusing on residential projects (3 to 4 billion baht), industrial estates (1 billion baht), and hotels (1 billion baht).

The Residential Business Group is set to launch a Flagship Cluster Home Project starting at 550 million baht in a prime city location.

For the residential business group, this year will see the launch of 2 new brands with 5 projects valued at 10 billion baht, including 3 single-family home projects priced between 15-50 million baht, expected to debut later this year. Additionally, the Flagship Cluster Home Project, the second flagship project following Santiburi Residences, will feature 2 homes with an interesting concept in the CBD Sukhumvit area, starting at 550 million baht each, anticipated to launch mid-year.

In the condominium sector, the company plans to acquire full ownership of The ESSE Sukhumvit 36 project from Hongkong Land to fully recognize revenue and profits from this project, targeting ready-to-move-in customers. It is expected that residential projects this year will see revenue growth of over 70%.

The Rental Property Group is confident that “S Oasis” will meet the demand for office rentals on Vibhavadi Road with a high rental rate of 90%.

For the commercial real estate business group, there are positive signs of recovery with a right-sizing business model offering diverse rental spaces. This year, the group aims for a 20% increase in performance with occupancy rates exceeding 90% across all projects, including Singha Complex, Sun Towers, S Metro, and S Oasis on Vibhavadi Rangsit Road, targeting customer demand in energy and transportation-related businesses, with major tenant contracts expected in Q2 of this year.

The Hotel Business Group is preparing to launch SO/Maldives, a luxurious 6-star hotel in the Crossroads Maldives project, targeting high-end clients.

For the hotel business managed by 'S Hotel and Resort' (SHR), this year, the four hotels in Thailand are expected to be key drivers, with revenue projected to grow by 60% from the previous year. Meanwhile, revenue from hotels in the Maldives is expected to increase by 30%, pushing total revenue beyond 10 billion baht, representing over 20% growth from 2022's revenue of 8.693 billion baht. By the end of the year, SO/Maldives, a luxurious lifestyle hotel rated 6 stars, will be launched in the Crossroads Maldives project to meet the demand for luxury accommodations priced at 700 to 1,000 USD per night, in collaboration with business partners, which is expected to generate long-term profits for the company.

This year, the focus is on achieving an all-time high overall occupancy rate of 75%, with renovations planned for three hotels in England, as well as in Fiji, Phuket, and Phi Phi, to enhance the quality of the hotels in the group, supporting SHR's position as the second-highest revenue-generating hotel management business in Thailand.

The Industrial Estate Business Group aims to double land transfer sales this year.

For the industrial estate and infrastructure business group, continuous growth is anticipated. In 2023, the company aims to double the land transfer volume in the S Ang Thong industrial estate from 77 rai transferred in 2022, driven by macroeconomic factors. The BOI expects foreign investment levels to stabilize at around 500-600 billion baht. Collaborations with the Industrial Estate Authority of Thailand (IEAT) and the strengths of the S Ang Thong industrial estate, which caters to diverse businesses, especially those requiring large amounts of energy and water, and those seeking clean energy for production, are essential for expanding into international markets. The estate is strategically located between raw material sources and transportation routes, with large freshwater sources, low-carbon electricity, and three power plants in collaboration with B.Grimm Power Public Company Limited (BGRIM), expected to have a total power generation capacity of 400 megawatts by the end of this year. Additionally, the commercial operation of the power plants will continuously drive profit shares in the long term.

Strengthening partnerships to enhance business speed.

Moreover, the company plans to collaborate with partners both within and outside the Singha Estate group. In the residential business, it aims to enter the Branded Residence market through partnerships with SHR, enabling faster market entry and adaptability. Additionally, solar panels will be installed on the roofs of SHR hotels in Thailand and the Maldives, in collaboration with infrastructure businesses, covering over 10,000 square meters and generating approximately 3 million kilowatt-hours of electricity annually. This project not only helps establish credibility for the infrastructure business but also allows the hotel business to manage energy costs effectively. Furthermore, the company plans to expand the use of clean energy to other potential projects in the future. The rental office business will begin developing Flex Space projects in its office buildings as a first step.

Meanwhile, the hotel business's strategy for growth through Speed to Market is the Asset Light Model, which addresses efficient investment management and offers high flexibility in management. The distinguishing feature that sets SHR apart from other hotel chains is its management of hotels beyond just its own brand, 'SAii,' which is a homegrown brand through Hotel Management Agreements, but also includes managing hotels under other brands (Third Party Operators).

The integration of the strengths of Singha Estate's businesses, combined with collaborations from leading partners, will be a crucial support in creating competitive advantages, enhancing competitiveness, and increasing responsiveness, enabling Singha Estate to drive average annual growth of 20% over the next three years.

For the financial performance in 2022, the company generated revenue of 12.5 billion baht, growing approximately 62% from the previous year, supported by several factors, including booking and ownership transfer rates in 2022 for the Sirininth Residence project, which reached 77% and 30%, respectively. This marks a remarkable achievement just one year after restructuring the business and fully entering the low-rise housing development sector.

The hotel business managed by SHR achieved revenue exceeding its target at 8.7 billion baht, ranking as the second-highest revenue-generating hotel operator in Thailand, thanks to strong strategies combined with the boost from the reopening of the country, resulting in an average daily rate (ADR) increase of over 28% from the previous year. The office building business shows significant signs of recovery with rising occupancy rates, while the industrial estate business recorded land ownership transfer revenues of over 77 rai last year.