S Hotels & Resorts reports a net profit of 40 million baht in the first half of 2024 and outlines its ongoing strategies for growth

BANGKOK, THAILAND: S Hotels and Resorts PCL (SET: SHR), the hospitality arm of leading international development company Singha Estate PCL (SET: S) reported robust second-quarter 2024 results, with a total  revenue of 2,469.1 million baht. This growth was driven by strong tourism demand across all operating regions, coupled with the positive reception of newly renovated rooms at hotels in both Thailand and the Republic of Fiji, which contributed to a 15% increase in the portfolio's average daily rate (ADR). As a result, the company reported a net profit of 40 million baht in the first half of 2024, a significant increase of over fourfold from 7.7 million baht in the same period last year.

Beyond the global uptick in tourism, the introduction of innovative accommodation concepts tailored to the burgeoning experiential travel market has propelled exceptional 46% growth for Two hotels in Fiji. This, combined with a proactive marketing strategy and the effective implementation of dynamic pricing, has cultivated a more balanced guest profile. Consequently, the average revenue per available room (RevPAR) for the two CROSSROADS Maldives properties and three company-managed Thai hotels increased by 12% and 17% respectively. These achievements successfully mitigate the impact of the temporary closure of 173 rooms at the SAii Laguna Phuket for renovations since mid-April 2024. As a result, overall, second-quarter revenue surged by 8%, while EBITDA demonstrated robust YoY growth of 27%, reaching 563.7 million baht.

Michael Marshall, Chief Executive Officer, stated: “This quarter's results underscore the quality and resilience of our hotel portfolio, as evidenced by our success in attracting a more diverse range of customer base, including tourists from China, the United States, South Korea, and the Middle East. This diversification helped mitigate the impact of a slowdown in Indian arrivals. Moreover, the portfolio demonstrated its capacity to increase revenue and EBITDA year-on-year, despite temporary challenges such as room renovations and the initial operations of SO/ Maldives. Excluding these factors, our other hotels in the portfolio exhibited a significant recovery, delivering a net profit this quarter."

For the first half of 2024, SHR reported an 8% YoY increase in service revenue, reaching 5,211.9 million baht. This is aligned with the ongoing recovery and growth trajectory of the tourism sector in Thailand, Maldives, and Fiji. Conversely, revenue from UK operations dropped due to the expiration of a hotel management contract in late 2023 and the May 2024 sale of Mercure Wetherby for 5.8 million pounds (equivalent to 269.5 million baht). This asset disposal will reduce annual interest expense by approximately 20 million baht and lower the interest-bearing debt-to-equity ratio (IBD/E Ratio) to 0.81 at period-end underscoring a robust financial position and positioning the company for sustained future growth.

Marshall added, "The sale of Mercure Wetherby aligns with our ongoing asset rotation strategy. Concurrently, our strategic partnership with Ascott to elevate our hotels in four key tourist and economic destinations in the UK, will be pursued alongside our search for high-potential, cost-effective expansion opportunities. This approach will maintain the company’s financial health and optimise operational performance."

Looking ahead, we anticipate a significant uplift in performance, driven by the peak tourist season in the third quarter for our Fiji and United Kingdom properties. Moreover, we expect a notable acceleration in the performance of SO/ Maldives in the fourth quarter. The scheduled launch of new rooms and facilities at SAii Laguna Phuket in December 2024 combined with our intensified cost control and expense management initiatives to bolster EBITDA margin, we forecast substantial revenue and profit growth in the latter half of 2024 and into the first quarter of 2025, compared to both the preceding quarter and the same period last year.

"SHR is committed to sustainable growth as the cornerstone of our operations. We will continue to execute our strategic plan by enhancing asset quality, improving the operational performance of our existing portfolio, and identifying new, high-potential customer segments to optimise RevPAR across all market conditions. Simultaneously, we will actively pursue new business opportunities that offer attractive value propositions. In parallel, we will focus on developing the SAii brand to elevate the guest experience and build a strong foundation for the business, ensuring maximum shareholder value." Marshall concluded.

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About S Hotels and Resorts Public Company Limited

S Hotels and Resorts Public Company Limited (SET:SHR), the hospitality arm of Singha Estate Public Company Limited, is a fast-growing, Thai-inspired company with an extensive international portfolio and world-class standards. Specialising in the management and investment of high-quality hotels and resorts in desirable destinations across the globe, S Hotels & Resorts has created a collection of its own distinctive lifestyle brands, whilst also partnering with the hospitality industry’s leading names. The company aims to set new standards for leisure and lifestyle through diversified business platforms and to enhance value for all its stakeholders based upon a philosophy of sustainable development and delivering benefits to local communities. To learn more, please visit www.shotelsresorts.com or follow us on Facebook, Instagram, Youtube, or LinkedIn. 

For more information and high-resolution images, contact:

Lalita Somboonsuk (Ta)

Senior Manager - Corporate Marketing Communications

S Hotels & Resorts | Singha Estate PCL

Tel: +66 (0) 2058-9888 ext. 320

E-mail: lalita.s@shotelsresorts.com Website: www.shotelsresorts.com