Singha Estate reported a total revenue of 2.127 billion baht for Q3 2021, reflecting a 20% growth compared to the previous year, driven by its hotel business in the UK, and announced the successful sale of the luxury housing project Santiburi The Residences.

Singha Estate reported its Q3 2021 financial results with total revenue of 2.127 billion baht, an increase of 20% from the same period last year, indicating a recovery in business as evidenced by continuous revenue growth for three consecutive quarters. The total revenue breakdown includes 436 million baht from residential business, 238 million baht from office buildings, 1.422 billion baht from hotels, and 31 million baht from other businesses.

The company continues to manage expenses effectively, achieving a 44% reduction in selling expenses, along with increased recognition of profit shares from investments in joint ventures, driven by the delivery of units from the project The ES Sukhumvit 36, resulting in Singha Estate reporting an EBITDA profit of 351 million baht in Q3 2021, up 16% from the same period last year.

Despite the exclusion of the financial results of Nirvana Daii Public Company Limited (“NVD”) from Singha Estate's consolidated financial statements since the beginning of 2021 following the completion of the investment sale transaction in NVD, total revenue still increased by 20%, supported by the outstanding performance of the hotel business. In this quarter, hotel revenue reached 1.410 billion baht, significantly growing over 1000% compared to Q3 of the previous year, primarily due to the strong recovery of the tourism sector in the UK.

This reinforces the success of the decision to adjust the portfolio and expand investments in new revenue sources that the company sees potential for a quicker recovery, by increasing its investment stake to 100% in the hotel group in the UK. As a result, Singha Estate has been able to recognize revenue from this hotel group since March. Q3 2021 has been a very favorable period for the hotel group in the UK, as the tourism sector fully recovers, benefiting from the lifting of COVID-19 restrictions and entering the tourism season, reflected in the average revenue per available room (RevPAR) for Q3 2021 returning to 95% of pre-COVID levels, contributing to the hotel group's return to profitability in Q3.

Ms. Thitima Rungkwansiriroj, CEO of Singha Estate Public Company Limited stated, "The satisfactory performance of our hotel portfolio in the UK is just the beginning, confirming the strength of the tourism industry, especially in leisure tourism. We believe that hotel business performance will continue to grow in the final quarter of the year and into early next year, supported by the hotels in the CROSSROADS project in the Maldives, which will enter the high season. We are confident that by the end of the year, RevPAR for hotels in this portfolio will be able to increase beyond pre-COVID levels. Additionally, we are starting to see signs of recovery in the tourism sector in Thailand and Mauritius as well."

The hotel portfolio in the CROSSROADS Maldives project is the first and only integrated tourism and leisure destination in the Maldives, offering a variety of services to cater to different customer groups, complemented by its prime location just 15 minutes by speedboat from the main international airport. In Q4, we expect an increase in high-spending tourists from the USA, UK, and other European countries, leading us to forecast that the average RevPAR for Q4 2021 will be able to increase to or exceed pre-COVID levels.

Moreover, we anticipate that hotel operations in other countries, which have received clear policies on reopening from their governments, will also recover well, similar to the CROSSROADS portfolio. We are already seeing positive signs from the Outrigger Mauritius Beach Resort, which reopened on October 1, 2021, welcoming international tourists with an occupancy rate of 40% in October, the first month of reopening, along with strong momentum throughout the tourism season.

Singha Estate's office building business has maintained an overall average occupancy rate of 87% for the nine-month period of 2021, through continuous lease renewals with existing tenants and additional leasing of space, reflecting the team's ability to target the right industry segments. Our clients are businesses that continue to grow and require additional office space to accommodate their expansion, especially at Singha Complex, which has a leasing rate of up to 95%.

In the residential business, the successful sale of all 25 units of the "Santiburi The Residences" project reinforces and demonstrates customer confidence in the Singha Estate brand, which is committed to creating a good quality of life for residents through three concepts: Smart Living, Healthy Living, and Sustainable Living, to develop and deliver projects of Best in Class quality to all residents. We continue to focus on developing horizontal residential projects to become a leader in the luxury home market, following the positive feedback from customers towards Singha Estate's single-house brand. We expect to launch our first project at Thapra 32 in Q2 2022," Ms. Thitima concluded.