S Hotels and Resorts, a global hospitality company under Singha Estate, reported impressive results in 2022 with revenue from sales and services reaching THB 8,963 million, which is a year-on-year growth of 93%.
The company’s strong performance was attributed to the rebound of the travel, tourism, and hospitality sector on a global scale.
In Q4 2022, S Hotels and Resorts posted a net profit of THB 108 million, marking its second consecutive quarter of positive performance.
The company expects to continue its momentum in 2023 with increased revenue and net profit.
Revenue Boosted by Hospitality Investment Portfolios
The company’s strong revenue performance in 2022 was largely due to the rising earnings from its four hospitality investment portfolios.
The Maldives and United Kingdom portfolios experienced particularly strong performance, both achieving their highest-ever performance levels.
The CROSSROADS Maldives development, which attracts all tourist segments, recorded an average occupancy of 66% and a 28% increase in average daily rate (ADR), compared to 2021, driven by room renovations to better meet travel demand.
The UK portfolio saw a 10% increase in occupancy and an 8% increase in ADR, resulting in a revenue per available room (RevPAR) of GBP 48 per night, surpassing the pre-Covid period.
Positive Momentum Continues in 2023
The company’s revenue growth was consistent in four consecutive quarters last year due to the progressive tourism recovery. Q4 2022 recorded a new high for revenue, backed by the peak seasons in Thailand and the Maldives.
The popularity of SAii Resorts in Thailand helped to increase ADR by 17%, enabling ADR and RevPAR for Thai properties to exceed pre-pandemic levels. This positive momentum continued in January 2023, as occupancy reached 90% at both Thai and Maldives portfolio hotels.
The company expects a solid performance in Q1 2023, including a 30% increase in these two portfolios compared to Q4 2022.
New Projects to Drive Performance for Years to Come
S Hotels and Resorts has a positive outlook for 2023, with the recovery of global travel set to accelerate, particularly as China’s borders have now reopened.
Chinese travellers account for about 10% and 20% of the group’s business in Thailand and the Maldives respectively. The company will also unveil new projects this year, which will drive performance for years to come.
The third property at CROSSROADS Maldives, SO/ Maldives, is set to open in Q4 2023 and is expected to become a new jewel in the Maldives’ tourism crown, setting the standard for luxury lifestyle hospitality in the archipelago and strengthening the luxury market for the CROSSROADS project.
2023 Business Strategy
S Hotels and Resorts 2023 business strategy includes asset management, which is expected to boost revenue by 20%. Higher profitability will be driven by rising ADR, efficiency enhancements, and cost deductions.
The company’s main focus is on building a strong financial position, which will allow the group to expand its investment portfolio via acquisitions and asset management to create long-term growth for shareholders.
The company is confident that it will deliver another impressive year with its 2023 strategic direction. The revenue is expected to surge beyond THB 10 billion, driven by efficient RevPAR management, new investments, and strong branding with SAii.
S Hotels and Resorts‘ remarkable performance in 2022, with a strong net profit of THB 108 million in Q4, highlights the strength and resilience of the company and its ability to adapt to changing market conditions.
The positive momentum is set to continue in 2023, with new projects and a solid business strategy that aims to increase revenue and profitability.
S Hotels and Resorts is committed to sustainable growth and will continue to build its business on the principles of balance, sustainability, and integration, to create value for customers, shareholders, and stakeholders, under the basis of risk management and corporate governance.
With its astute strategy and risk-diversifying management, S Hotels and Resorts is well-positioned to maintain its position as a leading player in the hotel industry and to deliver long-term growth for its shareholders.