S Hotel and Resort Public Company Limited, a leading hotel management and investment firm under Singha Estate Public Company Limited, has announced that the rapid and continuous recovery of the tourism industry is paving the way for the company to become the second highest revenue hotel operator in Thailand. The company aims for a record revenue of 8.5 billion baht this year, doubling last year's revenue of 4.5 billion baht. This growth will be supported by a risk diversification management policy and enhanced services to meet the highest demands of tourists, along with increased direct booking channels.

Mr. Dirk De Cuyper, CEO of S Hotel and Resort Public Company Limited, stated that the pent-up demand during the COVID-19 pandemic has spurred a rapid recovery in the tourism industry, with many parts of the world seeing continuous improvement. It is expected that the hotel business will become vibrant again, including S Hotel and Resort's properties located in the top five popular tourist destinations worldwide. It is anticipated that hotels in the UK will contribute 44% of total revenue, while those in the Maldives will account for 28%.

In the UK, the average revenue per room per night is expected to recover to pre-COVID levels from 2019, driven by the popularity of various MICE events, with over 50% of events being held in hotels. This could lead to an increase in RevPAR, bringing it closer to levels seen before the UK's exit from the European Union.

 

Meanwhile, hotels in the Maldives are also expected to grow strongly due to a steady influx of tourists. The impact of ongoing geopolitical conflicts is limited, as evidenced by the total number of visitors during this period reaching 168,491, which is over 45% more than the same period in 2020 and 2021, thanks to the return of tourists from Europe and the Middle East.

             Additionally, the Maldives government anticipates around 1.6 million tourists in 2022, a 21% increase compared to the previous year. Tourism in other countries, including Fiji, Mauritius, and Thailand, is also expected to continue growing, as governments begin to ease travel restrictions to stimulate economic recovery post-pandemic. This gives us confidence that we will benefit significantly from macro trends, with an average of 30% of hotel guests returning for repeat stays.

 

 

However, providing impressive travel experiences is expected to increase the average daily rate (ADR) by 20-25% in 2022. Additionally, special accommodation packages combined with unique tourism activities, such as the Marine Discovery Centre at SAii Phi Phi Island Village or the Maldives Discovery Centre at CROSSROADS Maldives, can attract tourists who appreciate modernity and the natural beauty of the surroundings, potentially increasing their spending by up to 15%. This factor is expected to contribute to a 20-25% increase in average daily revenue for hotels this year.

            The company has also renovated three hotels to meet standards and align with the SAii brand, which is a self-managed hotel platform created by the company. Utilizing the SAii brand will enhance the efficiency of the sales and marketing teams. This rebranding has already proven to boost the average daily rate in Q4 of 2021 by 30% compared to the same quarter in 2020.

 

Implementing direct booking strategies and developing a self-service booking platform will drive continuous revenue growth to create flexibility and quickly adapt strategies to changing demands and situations.

Last year, revenue from direct booking channels significantly increased as the company's booking platform was adapted to align with the 'We Travel Together' program, making room reservations easy and quick, providing a seamless experience for guests. This year, the company expects revenue from this channel to rise from an average of 10% in previous years to 30% of total revenue.

 

Clearly confident in tripling growth and maintaining market leadership

As for the growth plan, the company has outlined a three-year investment plan with a budget of over 7.3 billion baht to expand investments for continuous growth, along with a budget of 2.8 billion baht to strengthen rotation strategies and further investments, including the construction of SO/Maldives, which is set to launch in 2023. Additionally, there is a budget for mergers and acquisitions of 4.5 billion baht.

In the next three years, the company aims to develop and expand its business in all forms to ensure continued growth after the COVID-19 pandemic subsides, while maintaining a balanced hotel portfolio. The company will unlock fully valued assets to improve properties in the portfolio with significant return potential, starting with the hotel portfolio in the UK.

As for new investment plans, the company is preparing to expand its business through acquisitions, looking for hotels along the Asian and Pacific coastlines, the Mediterranean Sea, and the Indian Ocean, with an estimated investment of around 4.5 billion baht. The company is committed to becoming an operator and managing hotels under its own brand, as well as partnering with leading international hotel operators to expand its business. Therefore, we are confident that the company will triple its growth by 2024.