S Hotel and Resort Public Company Limited or SHR, a leading hotel management and investment company under Singha Estate Public Company Limited, has announced its business plan to achieve over 10 billion baht in revenue for 2023, confident in a 20% growth from the previous year after surpassing its 2022 revenue target of 8.7 billion baht. The strategy focuses on creating a balanced diversity for sustainable growth, supported by a strong financial position and the recovery of tourism following the reopening of the country. The company aims to implement the 3P strategy to generate profits, expand its business portfolio, and maintain its position as one of Thailand's top hotel management companies in terms of revenue.

Mr. Dirk De Kuyper, CEO of S Hotel and Resort Public Company Limited, stated, "The return of tourists from around the world following the lifting of international travel restrictions has led to a continuous recovery in the tourism industry. Coupled with our strong business strategies and distribution network, we can attract a more diverse range of tourists from all corners of the globe. This is a key driver for SHR's full-scale growth and record-high performance across hotels in various countries. We have managed to increase our average daily room rate (ADR) to levels higher than before the COVID-19 pandemic, marking the highest since our inception. Additionally, the recovery of hotels in Thailand has seen significant growth in the last quarter of 2022, resulting in SHR exceeding its revenue target of 8.7 billion baht, making it the second highest revenue-generating hotel management company in Thailand last year. Furthermore, the company has been recognized in the "Sustainable Stock List" for 2022 by the Stock Exchange of Thailand (SET) and received a "Excellent" (5-star) rating for corporate governance from the Thai Institute of Directors (IOD) and the Stock Exchange of Thailand, reinforcing its commitment to sustainable business practices while maintaining a balance with the environment and creating a quality society."

3P Strategy: Profit-Portfolio-Planet

  • Driving Sustainable Profit (Profit)

2023 is set to be a year of significant operational growth, leveraging business strengths and expanding sales channels to attract diverse customers from around the world. Mr. Dirk further stated that the direction of SHR's business operations in 2023 will fully support the recovery of the tourism sector. The company aims to maintain its position as the second highest revenue-generating hotel management company in Thailand, targeting revenues exceeding 10 billion baht, which represents a 20% increase from the previous year (YoY). The operational plans to achieve this revenue target stem from SHR's strengths in its diversified portfolio, allowing it to attract a wide range of customers globally.

With the complete reopening of the country, it is expected that the four hotels in Thailand will be key drivers for growth in 2023, targeting a revenue growth of approximately 60% from the previous year (YoY), accounting for 16% of the company's total revenue. Meanwhile, revenue from hotels in the Maldives and the United Kingdom is projected to grow by 30% and 10% from the previous year (YoY), representing 31% and 36% respectively.

Additionally, SHR recognizes the importance of utilizing digital platforms to enhance hotel room pricing efficiency according to seasonal demands and real-time responses, enabling effective revenue management. This includes conducting online marketing activities targeting diverse markets to increase direct booking rates and continuously push up the average daily room rate (ADR).

For 2023, we anticipate an occupancy rate of approximately 75% across all hotels in the group compared to the 2022 performance, where SHR reported a positive turnaround with an occupancy rate of only 60%. Therefore, we are confident that achieving the target occupancy rate of 75% will significantly drive SHR's profits in 2023, creating a new profit base for SHR to support future growth.

  • Expanding a Balanced and Diverse Portfolio (Portfolio)

Generating profits and expanding a diverse business portfolio is a crucial foundation for sustainable growth. The company has strategized to expand its business portfolio through three key approaches: asset rotation and enhancement. SHR will sell assets that have reached their full growth potential, using the proceeds to invest approximately 16 million pounds into high-potential assets that can drive future growth. The hotel sector that the company prioritizes is the business in the United Kingdom, which will enable an average ADR increase of around 90 pounds, or approximately 10% compared to 2022.

“Other assets included in the company's improvement and development plans also encompass the Crossroads Maldives project, which has completed the first phase of room enhancement (Product Enhancement) as of December 2022.

This year, facilities such as a local gallery, a café with virtual reality technology, and a large super yacht docking area have been developed to enhance diverse and memorable experiences. Plans are also in place to develop two projects at the Saii Resorts in Thailand: Saii Phi Phi Island Village and Saii Laguna Phuket, with improvements scheduled from 2023 to 2024.

Meanwhile, the Outrigger Fiji Beach Resort has already begun its improvement plans since October 2022, expected to be completed in 2023 to accommodate the upcoming tourism festival at the end of the year. With a total investment budget of approximately 1,000-1,500 million baht, we anticipate this will enable us to adjust room rates for the renovated rooms by an additional 15-40%,” Mr. Dirk stated.

SHR also has an investment budget for mergers and acquisitions (M&A) over the next three years of approximately 7.5 billion baht, continuing to target leisure destinations to diversify SHR's portfolio with potential and create sustainable revenue growth while reducing seasonal volatility in the hotel chain. Initially, the company is studying assets along the Asian and Pacific coastlines, including Thailand, the Mediterranean Sea, and the Indian Ocean. At the same time, SHR plans to expand its business using an asset-light model, which will further strengthen the business. Collaborations with partners, such as SO/Maldives, a modern lifestyle in a world-class tourism project, are set to launch around the fourth quarter of this year.

  • Delivering Sustainable Value and Experiences (Planet)

SHR has received a sustainable development policy from Singha Estate, with a vision of sustainable diversity to create balanced diversity for sustainable growth, reducing environmental impacts throughout the business supply chain in all dimensions. This year, we aim to reduce carbon emissions (Decarbonization) and replace fossil fuel energy with clean energy. We have installed solar panels on the roofs of SHR hotels in Thailand and the Maldives, covering over 10,000 square meters, capable of producing approximately 2.8 million kilowatt-hours of electricity per year, allowing us to manage energy costs efficiently.

In the past, SHR has been recognized as an environmentally friendly hotel operator and a promoter of biodiversity, receiving the Green Globe™ certification, which is the highest global standard for sustainable tourism and hospitality providers. The company emphasizes integrating environmental conservation education with unique experiences, such as marine biodiversity conservation activities at marine learning centers, including coral breeding projects and shark conservation initiatives. In 2023, we will develop a rare marine species conservation project in collaboration with IUCN at the Crossroads Maldives project and work with the Green World Foundation on a mangrove conservation project in the national park of Nopparat Thara-Phi Phi Islands. Additionally, we support local communities and promote local cultures, which will be integrated into the hotel services in various forms to create valuable experiences for all stakeholders.