SHR adjusts its business plan in the second half of 2020 to focus on the domestic and inter-regional tourism recovery and moves forward to expand the hotel portfolio as planned

Bangkok, 13 August 2020, – S Hotels and Resorts Public Company Limited or ‘SHR’, the hospitality arm of Singha Estate Public Company Limited has reported its operational results for the first half of 2020 (1H/2020) performance with the revenue from services of THB 1,152 million or a decline by 34% comparing to the same period last year, as a result of the temporary suspension on hotel operations from April 1, 2020 in response to the travel restrictions and the lockdown measures implemented by many countries.

Mr. Dirk De Cuyper, Chief Executive Officer of S Hotels & Resorts Plc, revealed that the temporary suspension of hotel operations affected SHR’s operating revenue in the first half of this year, in tandem with the industry. Whereas, SHR has been emphasizing on a healthy capital structure amid the challenging situation and has embarked on a progressive reopening plan, in line with the “new normal” of enhanced health and hygiene protocols, following the guidelines from the World Health Organization and local health authorities. 

SHR has put forward proactive efforts to drive business back to its property portfolio and set its strategies in accordance to country specific conditions. The re-opening has started from Thailand, with Phi Phi Island Village Beach Resort and Outrigger Laguna Phuket Beach Resort resumed their operations on July 1, 2020, followed by the reopening of Santiburi Koh Samui and Outrigger Koh Samui Beach Resort on July 15, 2020. In the Maldives, two properties, namely SAii Lagoon Maldives and Hard Rock Hotel Maldives, under the project CROSSROADS have also reopened their doors from July 15, 2020. Majority of the Company’s UK portfolio has re-opened in July and August. Outrigger Fiji Beach Resort and Castaway Island, Fiji have resumed their operations in July, whilst the Outrigger properties in Mauritius and Maldives are expected to reopen on September 1 and October 1, 2020, respectively.  

SHR has rolled out a series of innovative commercial strategies to target domestic and inter-regional markets in the short term, aiming to capture demands and minimise the impact from the risk of dependence on long-haul markets.

Four properties in Thailand have participated the government’s scheme “Rao Tiew Duay Kan” (We Go Travel Together), offering 40% discounts worth up to THB 3,000 per room per night for a maximum of 5 nights for stays during July 1 to October 31, 2020.

Additionally, properties have also inaugurated their own special “Buy 1 Get 1 Free” deals, entitling Thai residents free nights and additional extras such as dining, spa, excursions and more at Phi Phi Island Village Beach Resort and Santiburi Koh Samui. SHR’s two Outrigger branded resorts in Thailand are offering special discounted accommodation rates, starting from THB 1,799 at Outrigger Laguna Phuket Beach Resort and from THB 1,999 at Outrigger Koh Samui Beach Resort. 

“The global pandemic has caused unprecedented disruption to the global hospitality industry, and SHR was certainly not immune to its impact. We are confident however, that our company’s structure and key strengths – including our upper-upscale and leisure positioning – will help us bounce back more easily. With our healthy capital structure and low debt, we are aiming to build a strong and sustainable future for SHR,” Dirk added.  

With the target to double its portfolio within 5 years, SHR will continue its long-term direction. The Company has debt room to support future growth for acquisition or expansion through the management of third-party assets on the Hotel Management Agreement (HMA) model.