Singha Estate reports total revenue from sales and services for the first half of 2024 at 7,798 million baht, an increase of 14% from the previous year, with a net profit of 24 million baht, recovering from a loss of 76 million baht during the same period last year. This growth is supported by the recovery of performance across all business segments, reflecting customer confidence in the Singha Estate brand and its products, as well as positive responses to the expansion into new markets in both housing and hotels.

            The company Singha Estate Public Company Limited or S announced its financial results for the first half of 2024, reporting total revenue of 7,798 million baht, which includes (1) revenue from property sales of 1,956 million baht, showing a growth of 42% due to the outstanding transfer growth of the Srin Ratchaphruek Project Line 1 and the The Extro Phaya Thai-Rang Nam Project, as well as the recognition of land transfer rights in the S Ang Thong Industrial Estate, which grew about five times after the completion of land development and public utilities at the end of 2023. For (2) revenue from service businesses, it amounted to 5,820 million baht, continuing to expand due to an 8% increase in hotel business revenue from the previous year, supported by continuous growth in tourism demand across all operational regions, along with positive feedback on the new room types in hotels both in Thailand and the Republic of Fiji, which helped drive the overall ADR growth by 18% from the previous year, in line with the asset improvement targets set, complemented by rental income from commercial real estate growing 12% from the previous year, consistent with the increase in the occupancy rate of the S-OASIS building.

CEO Khun Thitima Rungkwansiriroj of Singha Estate Public Company Limited or ‘S’ stated, “We are pleased with the revenue growth and the turnaround to profit for the first half of this year, despite being pressured by seasonal factors and facing challenges from the economy and industry conditions. This reflects the quality, strength, and good diversification of the company’s portfolio, along with a targeted proactive marketing strategy that allows us to access potential markets with strong purchasing power while enhancing products and creating superior services designed to meet the needs of middle to upper-level consumers. This enables us to achieve an effective pricing strategy. Therefore, we are confident that as we enter the peak operational period, all our portfolios will be fully operational, driving significant growth in the second half of 2024.”

The success of the hotel business in the past half year has come from the ability to elevate room rates, reflecting the success of strategies to improve hotels for better profitability, particularly through the introduction of new room types that cater to the increasingly popular experiential tourism trend. As a result, the upgraded rooms at Outrigger Fiji Beach Resort and Phi Phi Island Village Beach Resort have increased their ADR by up to 40% . Additionally, the commitment to proactive marketing strategies and dynamic pricing, along with targeting diverse tourist markets to create a balanced market mix, has led to several of the company’s hotels gaining popularity among tourists from the United States, the Middle East, and Saudi Arabia, resulting in an increase in RevPAR for the CROSSROADS Maldives project and self-managed hotels in Thailand by 12% and 17% respectively.

These factors have bolstered the potential for revenue generation and increased EBITDA compared to the same period last year, despite being affected by temporary factors such as the closure for renovations of 173 rooms at the Sand Laguna Phuket Hotel, which began renovations in April and is set to reopen for travelers in December 2024, as well as pressures from the early performance of the SO/Maldives hotel opening. However, if we exclude these two factors, the performance of other hotels in the portfolio has significantly recovered. Furthermore, we see positive signs for room bookings in the next 3 - 6 months, increasing from the same period last year, which will be a crucial boost for the company’s hotel business through SHR to achieve the operational targets set for 2024.

In terms of significant developments in the hotel portfolio, the company continues to follow its strategic plan to enhance portfolio efficiency by signing a strategic partnership with Ascott to elevate hotels located in tourist cities and economic centers in the UK, aiming to reposition the marketing of potential hotels in tourist and major economic cities to enhance performance and attract international tourists to improve operational efficiency further.

For the residential business, revenue recorded a growth of 49% from the recognition of income from new projects that have started to show clear positive impacts, with customers responding excellently to our projects, such as the condominium project “The Extro Phaya Thai-Rang Nam,” which began transferring ownership at the end of March and has already recognized revenue of over 800 million baht in the first half of the year, accounting for 21% of the project value. Positive feedback from customers regarding the project, including construction quality and services received, gives us confidence in our ability to maintain customer trust and drive ownership transfers to meet targets, which will be a key factor in driving the company’s revenue in 2024 – 2025.

Similarly, the response to the Srin Ratchaphruek Project Line 1 has shown a continuous positive trend and popularity among customers, and the strong demand from the Premium Luxury customer segment in this western Bangkok location will translate into success for the new project planned to launch at the end of 2024 on the new Prannok Road, with a project value of over 4,200 million baht, which will strengthen the Srin brand and maintain the continuity of the company’s revenue in the second half of the year. The residential real estate sector is expected to recover in line with economic conditions, government investment, and tourism, which will help promote continuous growth in ownership transfers. We are confident that the Singha Estate brand is ready to maintain its status as the “Mastery of Luxury” and achieve success in projects considered the company’s masterpieces, including the completion of Santiburi The Residences, Sirininth Residence, and The ES Sukhumvit 36 condominium within 2024. For the office building business, which has developed assets to align with modern work life and enhance the quality of life for building users, this intention has led us to receive ISO certification across all four projects, including S-OASIS, S-METRO, SUNTOWERS, and SINGHA COMPLEX, to ensure stable performance and promote a good environment that enhances urban health, especially the S-OASIS office building, which stands out as a sustainable office and has received LEED Gold Version 4 certification, with continuous occupancy from major tenants. When combined with our targeted marketing strategies, this will further enhance sales opportunities in the next phase. Additionally, the sale of land in the S Ang Thong Industrial Estate, which has strengths in the availability of electrical and water resources and advantages in lower utility costs than other economic areas, will attract significant investor demand and help us expand our target customer base in the future.

Khun Thitima concluded, “We are ready to move forward with caution and commitment to achieve our revenue target of 18,000 million baht as planned, dedicating ourselves to appropriate strategies, conducting in-depth market analysis, and being ready to adjust our investment model in the second half of this year amidst challenging industry conditions. Proactive strategy adjustments to cope with changes are key to our progression towards becoming a truly international investment and development expert. Our success is not measured by numbers alone but by the trust that customers continuously place in us, alongside leveraging deep customer understanding to create the true value of Singha Estate’s products and services that stand out in today’s market.”