SHR, or S Hotels and Resorts Public Company Limited, a subsidiary of Singha Estate, showed a remarkable 66% growth in performance, generating revenue of 2.362 billion baht in Q3, along with a net profit of 208 million baht. This marks a strong recovery compared to the same period last year and the previous quarter, as the company aims to continue growing its performance in the final quarter of the year, confident of surpassing its revenue target of 8.5 billion baht.

Revenue from sales and services in the first nine months of 2022 reached 6.123 billion baht, more than doubling compared to the same period last year, driven by the growth of hotel operations across all four portfolios. Leading the charge are the consistently outstanding performances of the two hotels in the CROSSROADS Maldives project, which maintained a strong average occupancy rate of 67%. Additionally, the average daily rate (ADR) increased by 41% compared to the same period last year, similar to the recovery seen in the UK hotel portfolio, which achieved the highest ADR since operations began in Q3 2022 at £89, pushing the RevPAR for the nine-month period above the same time in 2019, prior to the COVID-19 pandemic. Furthermore, the company observed a clear recovery in tourism demand in Fiji, followed by Mauritius, after the formal reopening of borders, resulting in the Outrigger hotel portfolio achieving remarkable revenue of 1.012 billion baht, a growth of over 22 times compared to the same period last year.

For Q4, we believe it will be the best quarter of 2022, driven by the rapid recovery of hotel operations in Thailand, as reflected in the tourism statistics for October 2022, where the number of international tourists entering Thailand increased by 44% from the previous month to 3.1 million, nearly reaching the average monthly tourist numbers of 2019, before COVID-19. Given these factors, combined with the company's effective hotel management in Thailand, the occupancy rate for the company's hotels in Thailand significantly increased to 71% in October 2022, particularly for the Phi Phi Island Village Resort and Laguna Phuket, which had occupancy rates of 81% and 77%, respectively. The occupancy rate is expected to continue rising until early 2023, with ADR surpassing pre-COVID-19 levels, supported by the growth of CROSSROADS, which typically experiences peak tourism seasons in Q4, and is projected to achieve record-high performance since the project's launch in 2019 in the upcoming Q4.

 

Mr. Dirk Andre Leena De Kuyper, CEO, stated, “The performance recovery exceeding our expectations over the past nine months is due to the potential of our hotels located in the world’s top tourist destinations, the unique selling points of each hotel, and our proactive marketing efforts to enhance customer rotation strategies, creating balance and revenue stability for the company. We are confident in the strong performance for the final quarter of the year, which will drive our full-year revenue for 2022 to grow by over 90% compared to the previous year.”

SHR has been selected for the Thailand Sustainability Investment (THSI) list for 2022, with a total of 170 listed companies recognized as sustainable firms on the Stock Exchange of Thailand. This selection reflects the company’s ability to meet THSI criteria by integrating sustainable operations into its business strategy to create value for all stakeholders. The company is committed to achieving sustainable development goals in line with the United Nations (UN’s Sustainable Development Goals: SDGs), including compliance with Goal 11 on Sustainable Cities & Communities and Goal 14 on Life Below Water. By adhering to these practices, the company believes it will benefit everyone involved in the tourism industry, including local communities that will gain from sustainable development.

Additionally, we continue to enhance the efficiency of our investment portfolio, particularly the UK hotel portfolio, through a strategy of asset rotation, selling underperforming assets and reinvesting the proceeds into higher-potential hotels. In 2022, the company successfully completed the sale of the Mercure Burton upon Trent Newton Park and Mercure London Watford hotels for a total of £19 million. The proceeds from these asset sales will be reinvested to upgrade other competitive assets in the UK. The company also acquired the head lease of the Mercure Perth hotel for £2.7 million, significantly improving its performance.

 

Following this, renovations at the Outrigger Fiji Beach Resort will commence from October 2022 until the end of 2023, involving major upgrades to both guest rooms and common areas, which will allow for an ADR increase of 10-15%. Additionally, some rooms at CROSSROADS Maldives will be upgraded to reposition the product to better reach the luxury customer segment, with successful improvements in hotel performance expected to drive our ADR target up by approximately 15-20%.

Mr. Dirk concluded, “We are confident in the operational direction aligning with our goals for 2022, driven by a diversified portfolio across popular global tourist destinations. Our target for 2023 is to achieve strong revenue growth reaching 10 billion baht, as SHR continues to develop hotel rooms to enhance asset efficiency and competitive potential, driving RevPAR growth across all hotels in the future. Additionally, by the end of 2023, we will launch a new luxury resort under the SO/ brand at the CROSSROADS Maldives project, expected to accommodate travelers from around the world.”