SHR board greenlights inaugural dividend payment in May ’24 following a record-high revenue and a fivefold profit increase, and outlines continuous strategic expansion in 2024

S Hotels and Resorts Public Company (SET:SHR) is poised to distribute its first ever cash dividend since its public listing, following record-high revenue from sales and services in 2023, which reached a total of THB 9,701 million, representing a notable 12% increase compared to the previous year and a fivefold growth in net profit. This      outstanding performance was driven by a robust resurgence in the tourism industry during the first full year of reopening. The company also disclosed an average occupancy rate, based on available rooms, of 71%, marking a 10% increase from the previous year. Furthermore, a combination of effective marketing strategies targeting high-potential customers and continual enhancements in products and services, notably the successful execution of hotel renovations, resulted in a      strong 9% increase in the average daily rate (ADR) to THB 5,675, accompanied by an impressive 23% boost in revenue per available room (RevPAR) to THB 3,871. With a steadfast focus on cost control and efficient expense management, the company reported a net profit of THB 86.4 million, reflecting an outstanding 501% increase from the previous year.

Mr      Michael      Marshall, the Chief Executive Officer of the company, stated, "Beyond the continuous recovery of the global tourism industry throughout the past year, SHR's competitive edge stems from the strategic location of our hotels, all situated in prime destinations favoured by international travellers. Complemented by our adaptable business planning and forward-thinking approach, whether through diverse marketing strategies or the enhancement of high-potential assets, this reaffirms our commitment to continuously enhancing portfolio efficiency. Our collective effort has yielded significant improvements across all key performance indicators, driving increased revenue across various geographical regions. Specifically: (1) our hotels in Thailand increased revenue by up to 59% from the previous year, with occupancy rates, excluding rooms undergoing renovation, reaching as high as 78%. This reflects the strategic advantages of our locations and the exemplary quality of our products and services, enabling us to maintain favourable repeat guest numbers and effectively attract popularity from high-spending tourist segments. (2) The consistently outstanding performance of our UK properties, which reflects the ongoing expansion in both domestic and international tourism, along with the success of our portfolio optimisation strategy, has resulted in achieving our highest ever RevPAR. (3) Despite fierce industry competition, our two properties within the CROSSROADS project in the Maldives have successfully sustained a 4% revenue growth. This was accomplished through proactive and flexible 

strategies, particularly in targeted marketing to attract tourists from new markets, thus diversifying our revenue streams and effective pricing      strategies. (4) Despite room limitations due to the temporary closure of the Outrigger Mauritius Beach Resort for water management system upgrades from April to October 2023, our properties in the Republic of Fiji maintained resilient operations, leveraging strategic location advantages, and delivering exceptional guest experiences. Furthermore, the completion of phase 2 renovations at Outrigger Fiji Beach Resort in November resulted in a significant ADR increase of over 23% from the previous year."

In addition to achieving impressive operational performance targets, the company has garnered substantial investor confidence. In its inaugural public corporate bonds offering, the subscribed amount exceeded its target by THB 1,300 million, reflecting the company's capability to secure funding for future expansion to support future expansion strategies amidst volatile market conditions. Moreover, over the past year, the company has succeeded in project developments, notably the renovation of core portfolio hotels aimed at bolstering competitiveness and driving efficient profitability. It is anticipated that these renovated rooms will yield an average daily rate (ADR) increase ranging from 15% to 25%. Additionally, the commercial launch of the 5-star SO/ Maldives Resort in November received positive feedback, bolstering the CROSSROADS Maldives project as a comprehensive destination for leisure and lifestyle, offering diverse products to cater to all tourist preferences.

Building upon the achievements of the past year and bolstered by SHR's optimistic outlook on the business's future growth trajectory, the Board of Directors has resolved to approve the distribution of cash dividends to shareholders for the first time since the company's listing on the Stock Exchange of Thailand. This dividend, set at a rate of THB 0.015 per share, is scheduled for distribution in May pending approval at the forthcoming shareholders' meeting at the end of April.

Mr. Marshall further elaborated, "The company has observed robust positive indicators in 2024 from the growing number of international tourists and their increased propensity to spend on tourism, evident in Thailand, the Republic of Maldives, and the Republic of Fiji. This is coupled with the increase in Revenue Per Available Room (RevPAR) resulting from successful room renovations and hotel standard enhancements over the past year."

To further strengthen the company's solid business foundation, SHR will concentrate on enhancing profitability potential in 2024 through four key strategies:

• Operational management will prioritise driving RevPAR growth across all geographical locations of the company's properties and boost non-room revenue by offering unique food and beverage experiences aligned with the brand's identity. Additionally, there are plans to introduce beach clubs at all SAii resorts.

• Continual portfolio enhancement and asset rotation will be pursued. This includes executing the second      phase of the hotel renovation plan in Thailand, specifically at SAii Laguna Phuket and SAii Phi Phi Island Village, along with strategies to penetrate new customer segments and rebrand suitable and potential hotels in the United Kingdom.
• Elevating the SAii brand to international standards and establishing brand recognition as a sustainable luxury tourism destination will be prioritised. This involves leveraging the brand's strengths to facilitate flexible growth with reduced constraints, utilising both the Asset-Light business model and joint ventures.
• A THB 15 billion investment budget will be allocated over the next 5 years for mergers and acquisitions to diversify the company's portfolio, sustain revenue and profit growth, and mitigate the seasonal effects of hotel operations.

"With our robust business strategies, particularly in brand enhancement and investment plans focusing on quality assets, these will be pivotal drivers for SHR to achieve its business objectives this year, encompassing revenue growth, profitability enhancement, and international portfolio expansion," concluded Mr. Marshall.

About S Hotels and Resorts Public Company Limited

S Hotels and Resorts PCL (SET: SHR), a subsidiary of Singha Estate PCL (SET: S), is a fast-growing holding company that engages in the management of hotels and resorts. In 2023, its performance has been outstanding with its portfolio featuring world-class hotels and resorts in not just Thailand but also beyond. An expert in upscale hotel and resort management and investments in the most desirable global tourism destinations, SHR organically develops several lifestyle hotel brands and collaborates with some leading hotel/resort brands with strong distribution channels. As of 2024, SHR has 38 hotels in its portfolio. Together, these hotels have had 4,552 rooms. Each of them is located in a key tourist destination that attracts tourists from all over the world.  Guided by its parent company Singha Estate, SHR enjoys management strengths and pursues Sustainable Diversity Strategy. It thus has a diverse yet balanced investment portfolio, with sustainable growth as the ultimate goal of is operations. Thanks to its environmental focus, five resorts in Thailand and the Maldives and The Marina @ CROSSROADS have won Green Globe certifications that effectively provide assurances to both investors and guests. 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