Singha Estate Public Company Limited announced a profit of 71 million baht for Q1 2023, a turnaround from a normal loss of 126 million baht in the same period last year. The company has laid out its business expansion plan for 2023, aiming to drive continuous growth by launching 5 residential projects, supported by its industrial estate and commercial real estate sectors, which are progressing according to plan.

In the past quarter, the hotel business showed strong growth due to the reopening of countries worldwide, generating revenue from sales and services amounting to 2.544 billion baht, representing an approximate growth of 51% compared to the same period last year. This growth was driven by all four hotel portfolio groups in which the company invested, particularly the performance of hotels in Thailand, which saw revenue increase by more than threefold due to an average occupancy rate exceeding 88% in the first quarter, allowing for an average daily rate (ADR) increase of over 8% compared to pre-COVID-19 levels, reinforcing the strength of the company's hotel business located in prime areas and significant travel destinations for tourists. The strong performance of both hotels in the CROSSROADS project attracted a diverse range of tourists globally, pushing the average occupancy rate to over 88% with the highest revenue per available room (RevPAR) since the project's inception, thanks to effective RevPAR management strategies and room improvements to meet tourism trends. The outlook for tourism in Thailand and the Maldives is expected to remain positive throughout this year, leading the company to be confident in the hotel business performance for 2023, as both portfolios contribute approximately 50% of the company's total revenue.

Ms. Thitima Rungkwansiriroj, Chief Executive Officer of Singha Estate Public Company Limited, stated that the Q1 performance reflects clear signs of recovery in the hotel business, with all hotels fully operational for tourists, signaling continued growth in upcoming quarters. We are confident that we can achieve our revenue target of 16.7 billion baht for the year, primarily driven by hotel growth exceeding 10 billion baht, complemented by revenue from residential projects supported by demand for ready-to-move-in condominiums as borders reopen globally. We are ready to seize this opportunity by increasing our stake in The ESSE Sukhumvit 36 project, allowing us to recognize 100% of the revenue and profit from this project. We expect this project to play a significant role in supporting performance in Q2 and Q3 of this year, along with the final quarter, which will see transfers from new projects set to launch, similar to the Sirininth Residence project, which has been well-received by customers and generated excellent performance in 2022.

The company plans to expand its horizontal residential projects and increase the diversity of housing in terms of location and customer base. In 2023, the company plans to launch a total of 5 horizontal projects worth over 10 billion baht, with a budget set aside for land acquisition to support the launch of at least 4 projects annually, aiming for a CAGR of 20% in residential business revenue by 2025.

In addition to the 3 allocated projects in prime locations in Bangkok that we will gradually launch in the second half of this year, we will differentiate Singha Estate's horizontal projects based on the Speed to Market strategy, focusing on projects that truly understand customers, offering exclusivity with appropriately sized projects that provide privacy in a Cluster Home style. We will launch a flagship project starting at 550 million baht in a Private Estate format in the heart of Sukhumvit and prepare to develop the next project in the Ram Inthra area, set to launch in Q2 of this year with a starting price of 100 million baht.

For the other 2 businesses of Singha Estate that will significantly contribute to revenue growth in 2023, they include (1) the commercial real estate business, which will recognize full-year revenue from the S-OASIS building, which has over 53,000 square meters of rental space and has recently opened, currently receiving strong interest with nearly 9,000 square meters of leasing contracts signed, and (2) the industrial estate and infrastructure business, which has accumulated land transfers of 87 rai, with approximately 900 rai remaining to be developed and transferred to customers. We expect land sales to accelerate in 2023, in line with the progress of infrastructure development in the industrial estate and the commercial operation of two power plants in Q4 2023, which will be another factor driving the company's continuous profit growth.

“Singha Estate will drive its business in 2023 with full strength through a strategy aimed at excellence in business or S EXCELS to achieve all-time high revenue and profit targets while continuing to expand the business. We are committed to delivering good returns to shareholders, providing excellent products to customers, and creating sustainable value for all stakeholders,” Ms. Thitima added.