SHR Continues to Showcase Outstanding Performance in the Maldives, Confident in UK Portfolio for the Second Half of the Year

 

Bangkok, May 13, 2021 – SHR has adjusted its strategy to stabilize the business by balancing revenue and diversifying its customer base to support opportunities for business recovery after the COVID-19 crisis. This follows an investment of over 560 million baht in February to acquire 100% shares in 26 hotels in the United Kingdom.


The company has implemented plans to sell some hotels in the UK to reinvest in the improvement and development of its core assets while moving forward with a major marketing strategy to build a Thai hotel brand and attract domestic customers. The first quarter results of 2021 reflect improved growth, with revenue increasing by 83% compared to the previous quarter.

S Hotel and Resort Public Company Limited, or ‘SHR’, a subsidiary of Singha Estate, reported that revenue from sales and services in the first quarter of 2021 grew to 544 million baht, an increase of 83% from the fourth quarter of 2020, driven by the outstanding performance of hotels in the CROSSROADS project in the Maldives and partial revenue recognition from hotels in the UK, reflecting a risk diversification strategy.

For hotels in Thailand, SHR has successfully revamped its marketing strategy to attract Thai tourists, who were not previously the main customer base. This includes rebranding the Outrigger Laguna Phuket Beach Resort and Phi Phi Island Village Beach Resort into the first two “SAii” hotels in Thailand: SAii Laguna Phuket and SAii Phi Phi Island Village, focusing on new website channels and booking platforms, as well as incorporating new technologies to enhance efficiency and revenue management.

Mr. Dirk Andre Leena Kueber, CEO, stated, “We are very pleased that the first two SAii brand resorts have received a positive response. This indicates that the brand is starting to reach Thai customers. We sincerely thank everyone for their support and compliments towards the two new resorts, as well as the popularity of SAii Lagoon Maldives, which gives us great confidence in future growth. We hope that when the country reopens, more international travelers will experience the warm Thai hospitality at SAii. Additionally, we are looking for opportunities to expand into highly sought-after destinations worldwide.”

In April 2021, SHR reached an agreement to sell the Mercure Newbury Elcot Park hotel in the UK, a 73-room hotel valued at £4.25 million (approximately 182 million baht), as part of its strategy to optimize the company's investment portfolio. Furthermore, we are considering selling about 4-5 more hotels in the UK, with the proceeds from these asset sales to be reinvested in the development and improvement of the company’s leading hotels to enhance competitiveness and profitability of the UK portfolio, aiming to push EBITDA to its highest level ever at £18 million or approximately 720 million baht.

Regarding the performance of hotels in the UK this year, the company is confident that these hotels will see continuous growth in revenue and profits in the second half of the year, driven by the progress of the vaccination rollout in the UK and Europe, which aligns with the UK government's ongoing relaxation of travel and living restrictions announced since April. This is expected to positively impact these hotels as they welcome the tourism season in the third and fourth quarters.

At the same time, the company has instructed each hotel to adjust various strategies to align with the COVID-19 pandemic situation and the tourism reopening measures of each country. “We remain confident that in 2021, as the COVID-19 situation eases and vaccines are widely distributed, it will be a significant factor supporting the recovery of the tourism and hotel sectors. SHR is fully prepared to move forward with the business while being mindful of environmental concerns and maintaining high hygiene service standards,” Mr. Dirk concluded.