S Hotels & Resorts, the renowned global hospitality company under Singha Estate PCL (SET: S), has recently announced its financial results for the first quarter of 2023 (Q1/2023). The company’s Q1 performance showcased impressive growth, with a net profit of THB 125 million, marking a significant 16% quarter-on-quarter increase. These results are in line with the robust recovery observed in the global tourism sector, signifying the success of S Hotels & Resorts‘ solid business strategies.
Driving Revenue Growth Across Portfolios
S Hotels & Resorts has experienced substantial revenue growth across its portfolios, contributing to its Q1 success. The company’s four hotels in Thailand witnessed a remarkable tripled revenue growth compared to the previous year, benefitting from the country’s full-year reopening. Notably, all properties in Thailand reported an average occupancy rate of over 85% in Q1/2023, accompanied by an impressive increase of more than 8% in the average daily rate (ADR) when compared to pre-COVID years.
Exceptional Performance of CROSSROADS Maldives and UK Portfolio
The exceptional performance of CROSSROADS Maldives and S Hotels & Resorts‘ UK portfolio has further underscored the company’s robust recovery potential. Both properties in CROSSROADS Maldives have attracted diverse groups of travellers, offering unique and distinctive experiences. Effective strategies focused on revenue per available room (RevPAR) management, combined with ongoing room renovations and enhancements, have resulted in the highest quarter of average occupancy rate since its opening, reaching an impressive 87%.
The UK portfolio has also demonstrated strong performance, maintaining a remarkable occupancy rate of 66% even during the low season. The revenue per room per night (RevPAR) in UK properties has surpassed the pre-COVID levels of 2019, reaching GBP 50. These outstanding achievements highlight the company’s ability to deliver exceptional operating performance across its diversified portfolio.
Strong Foundation and Digital Innovation
Dirk De Cuyper, the Chief Executive Officer of S Hotels & Resorts, credits the Q1/2023 success to the company’s strong business foundation, capable of supporting the growth of tourism to its fullest potential. The company remains committed to continuously improving and implementing various digital technology platforms to enhance its products and services and cater to the increasing demands of tourists.
Leveraging the strong recovery of the global tourism sector in 2023, coupled with successful RevPAR management strategies and ongoing portfolio enhancements, S Hotels & Resorts aims to solidify its performance throughout the year, especially in the last quarter.
Commitment to Sustainability and Community Empowerment
Aligned with Singha Estate’s global strategy, S Hotels & Resorts is fully committed to operating sustainably, protecting the environment, and empowering communities in all its destinations. Four of the company’s properties have recently been awarded the prestigious Green Globe™ Certification, which signifies their sustainable operations in tourism and hospitality.
The Green Globe Standard is Recognized by the Global Sustainable Tourism Council (GSTC). Affiliated with the UN World Tourism Organization(UNWTO), these properties include SAii Laguna Phuket and SAii Phi Phi Island Village, which are part of the upper-upscale lifestyle brand, SAii Resorts, along with Santiburi Koh Samui and CROSSROADS Maldives, a fully integrated lifestyle destination.
Focus on Shareholder Returns and Financial Stability
Creating the highest return for shareholders remains a crucial commitment for S Hotels & Resorts. The company recently received approval at the Annual General Meeting 2023 to allocate a portion of its share premium to compensate for the total accumulated loss, thus clearing the accumulated loss in the financial statements. This development enables the company to pay dividends to its shareholders when it generates profits in the future.
Additionally, the issuance and offering of debentures, with a maximum amount of THB 5,000 million, were approved to rebalance the company’s funding resources and foster future growth. S Hotels & Resorts will consider issuing these debentures based on the necessity of funds for business expansion, generating long-term returns for shareholders, and managing financial costs considering optimal bond market conditions.
Mr Dirk De Cuyper, the CEO of S Hotels & Resorts, expresses confidence in the company’s ability to achieve significant profit growth and establish a new profit base to support future growth. With the return of international tourists following the lifting of global travel restrictions and the implementation of robust business strategies, S Hotels & Resorts anticipates achieving exceptional performance across all portfolios. As the revenue surpasses THB 10,000 million, coupled with an average occupancy rate of over 75% and effective cost control, the company is poised for a successful year ahead.