‘S Hotel and Resort’, a subsidiary of ‘Singha Estate’, prepares to issue two new bond series with maturities of 2 and 3 years at interest rates of 4.50% and 5.00% per annum to strengthen and expand business growth opportunities
S Hotel and Resort <\/strong><\/span>has filed to offer new bonds to the public in two series with maturities of 2 years and 3 years at interest rates of 4.50% and 5.00% per annum, expected to be offered between February 4 – 6, 2025. <\/strong>Financial institutions as bond underwriters are confident that this is a great opportunity for investors in bonds of a hotel business with potential and growth opportunities in the future, similar to the bonds of the parent company “Singha Estate” which received full subscription as targeted.<\/strong><\/span><\/p>
S Hotel and Resort Public Company Limited, or “SHR”, a subsidiary of “Singha Estate”, is preparing to offer new bonds to the public. The company is currently in the process of filing information about the debt securities to the Securities and Exchange Commission (SEC) to offer registered bonds that are unsecured and non-subordinated, with a bondholder representative. The bonds are divided into two series: Series 1, a 2-year bond with an interest rate of 4.50% per annum, and Series 2, a 3-year bond with an interest rate of 5.00% per annum. Interest will be paid every 3 months, with a minimum subscription of 100,000 baht, in increments of 100,000 baht, and the public offering is expected to take place between February 4 - 6, 2025. <\/strong>The company has appointed 5 financial institutions as bond underwriters, including Krung Thai Bank, Kasikorn Bank, Kiatnakin Phatra Securities, CIMB Thai Bank, and Asia Plus Securities.<\/span><\/p>
The bonds have been rated by TRIS Rating on January 6, 2025, at “BBB”, which is in the “investment grade” category, while the corporate credit rating is at “BBB+” with a “Negative” outlook. TRIS Rating indicated that this credit rating reflects the expectation that the company will continue to grow its revenue due to the supportive factors of the hotel operations returning to normal after recent renovations.<\/span><\/p>
S Hotel and Resort Public Company Limited, or ‘<\/strong>SHR’ <\/strong>which is a subsidiary of Singha Estate Public Company Limited, or “S”, operates in hotel management and invests in high-potential international hotel businesses. The company has shown outstanding performance over the past 9 months due to its continuous asset quality improvement strategies, such as the Sand Lagoon Hotel in Phuket, the Sand Phi Phi Island Village Hotel, and the Outrigger Fiji Beach Resort, which have significantly increased the average daily room rate (ADR). Additionally, the global tourism industry’s expansion has supported the company’s revenue from sales and services for the first 9 months of 2024, which increased to 7,746 million baht, and the company has managed costs more efficiently, resulting in a core operating profit growth of over 30% compared to the same period last year, reflecting SHR's strong growth potential supported by the continuous growth of the tourism industry in Thailand and in many countries where it invests.<\/span><\/p>
Mr. Michael Marshall, CEO of S Hotel and Resort Public Company Limited, stated that:<\/strong> “The remarkable recovery of the company’s performance from the investment restructuring plan, asset quality development strategies, and continuous profit efficiency improvements in the past aligns with the positive growth trend of the global tourism industry expected in the next 2-3 years. This gives the company confidence that the bonds will be well received by investors, similar to the bond offering of Singha Estate earlier this January.” <\/span><\/p>
“The tourism industry is a crucial engine driving economic growth in almost every country where the company operates, supported by various factors such as relaxed visa policies and reduced travel costs. SHR sees significant expansion opportunities to meet this increasing demand, which is why the decision was made to issue these bonds, aiming to manage financial costs at an appropriate level, strengthen financial stability, and leverage business expansion to seize growth opportunities from the global tourism industry's recovery. The company will focus on seeking investment opportunities primarily in key tourist destinations and consider expanding its business scope into urban city hotels to create valuable returns for shareholders in the long term while ensuring sustainable growth for the company,” Mr. Michael David Marshall added.<\/strong><\/span><\/p>
Financial institutions as bond underwriters <\/strong>SHR further stated that:<\/strong> This is a great opportunity for investors to invest in bonds of a hotel business with potential and future growth opportunities, especially for those who missed the subscription for “Singha Estate” bonds, which received excellent responses leading to full subscriptions as targeted.<\/span><\/p>
The bonds of S Hotel and Resort are expected to be offered to investors between February 4 - 6, 2025, through 5 leading financial institutions nationwide:<\/span><\/span><\/p>
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Currently, the company is in the process of filing information and a draft prospectus with the SEC, which is not yet effective. For general investors interested in subscribing to the bonds, further details can be studied from the draft prospectus available at www.sec.or.th.<\/span><\/span><\/p>
Warning: Investing involves risks. Investors should study and understand the nature of the products, return conditions, and risks before making investment decisions.<\/span><\/span><\/p> 
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