SHR reports improved performance across all portfolios, achieving first-half revenues of 3.76 billion baht. The company is confident that the second half of the year will see significant growth, pushing total revenue for 2022 beyond the target of 8.5 billion baht.

S Hotel and Resort Public Company Limited (SHR), a subsidiary of Singha Estate, showcases continuous growth in its first-half performance, with sales and service revenues totaling 3.761 billion baht, nearly tripling compared to the same period last year. The company also reported an Adjusted EBITDA of 639 million baht, marking its fourth consecutive quarter of profit. The company is confident that the second half will see over 25% growth compared to the first half, driven by the full reopening of all operational portfolios.

Additionally, the company is witnessing strong pent-up demand, combined with the potential of its hotels located in the top five global tourist destinations, particularly in Thailand and the Maldives. We firmly believe that hotels across all portfolios will recover faster than the industry average.

The key drivers of our strong performance include not only the hotels in CROSSROADS and the UK portfolio, which have consistently shown outstanding results, but also the hotel portfolios in Thailand and Fiji. With the strategic location of our hotels and successful brand recognition efforts, we expect the Thai hotel portfolio to nearly double its revenue in the second half of the year, similar to the Republic of Fiji, where tourist arrivals in June grew by 73% compared to pre-pandemic levels. Our hotels in Fiji have outperformed the industry, particularly Castaway Island, Fiji, which achieved an occupancy rate of 84% in June and increased RevPAR by approximately 5% compared to the same period before the pandemic.

Mr. Dirk Andre Leena de Kuyper, CEO stated, "Our first-half performance has recovered better than we anticipated, with a continuous upward trend in tourist numbers and the success of our portfolio optimization strategies. Many of SHR's hotels have occupancy rates exceeding the industry average, such as our Maldives portfolio, which had an average occupancy of 70% in the first half compared to the industry average of 61%. In Phuket, Thailand, our hotels achieved an average occupancy of 53%, surpassing the industry average of 40%. Notably, our hotels in Fiji had an average occupancy of 54%, higher than the pre-pandemic industry average of 52% in 2019, reflecting asset efficiency and competitive potential. We are confident that we can drive performance in the second half closer to 2019 levels, before the pandemic, and SHR will continue to enhance hotel room offerings to improve occupancy rates and average room rates in the future."

Furthermore, we are beginning to see a recovery in MICE (Meetings, Incentive Travel, Conventions, Exhibitions) events across the UK, Maldives, and Thailand, with an increase in event bookings in the first half and venue reservations for the second half. We have several hotels equipped to host meetings and events, particularly the Sands Laguna Phuket, which features a fully equipped Meetings & Events Centre, becoming a prime destination for various events, including significant business meetings, corporate conferences, gala dinners, award ceremonies, product launches, and more. We expect the MICE industry to recover better in the second half, serving as another key driver for revenue growth in 2022.

 

Mr. Dirk concluded, "We are confident in our outstanding operational direction, given the asset potential following our asset rotation strategy. Moving forward, SHR will focus on optimizing each portfolio, whether through room improvements, enhancing and adding value to hotels, proactive marketing strategies, building brand awareness for SAii, and developing a booking platform that aligns with changing demands and circumstances. Currently, SHR's revenue from direct hotel bookings has increased to 20% in the first half, up from an average of 10% from 2018 to 2021, with a goal to raise direct bookings to 30% by year-end. These strategies will be crucial in driving performance and will be key mechanisms for portfolio growth in the second half and beyond, enabling the company to achieve its revenue target of 8.5 billion baht for 2022 and to become the second-highest revenue-generating hotel management company in Thailand."