Global Tourism Rebound Boosts S Hotels: Q1/2023 Net Profit of THB 125M, Up 16% QoQ!

May 16, 2023

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S Hotels & Resorts, the renowned global hospitality company under Singha Estate PCL, has announced its financial results for the first quarter of 2023 (Q1/2023), revealing a net profit of THB 125 million. This impressive figure represents a remarkable 16% growth quarter-on-quarter (QoQ) and reflects the strong recovery within the global tourism sector.

Driven by robust business strategies, the company reported revenue from sales and services amounting to THB 2,544 million, signifying a notable 51% year-on-year growth. S Hotels & Resorts has displayed positive performance for three consecutive quarters, thanks to its solid foundation and effective execution of its business plans.

The outstanding revenue growth in Q1 can be attributed to the exceptional operating performance across the company’s portfolios. Notably, the four hotels in Thailand experienced a tripling of revenue compared to the previous year, mainly due to the country’s full-year reopening. These Thai properties showcased an average occupancy rate exceeding 85% in Q1/2023, accompanied by an 8% increase in the average daily rate (ADR) compared to pre-COVID years.

Moreover, CROSSROADS Maldives and the UK S Hotels & Resorts portfolio have demonstrated strong recovery potential and favourable operating performance throughout 2023. The unique and distinctive properties in CROSSROADS Maldives have attracted diverse groups of travellers, resulting in an impressive average occupancy rate of 87%, marking the highest quarter since its opening. Even during the low season, the UK portfolio maintained a robust occupancy rate of 66% and achieved a revenue per room per night (RevPAR) of GBP 50, surpassing pre-COVID levels in 2019. These achievements underscore the company’s milestone in delivering exceptional operating performance from its diversified portfolio.

Mr Dirk De Cuyper, Chief Executive Officer of S Hotels & Resorts, expressed his satisfaction with the Q1/2023 performance, emphasizing the strength of the company’s business foundation and its commitment to leveraging digital technology platforms to enhance products and services. He projected that the solid performance in 2023 would showcase S Hotels & Resorts’ great competitiveness in the industry, particularly in the year’s final quarter.

S Hotels & Resorts aligns with Singha Estate’s global strategy and is committed to sustainable operations, environmental protection, and community empowerment in all its destinations. Recently, four of its properties received the prestigious Green Globe™ Certification, a renowned accreditation for sustainable operations in tourism and hospitality.

To further maximize returns for shareholders, SHR approved the allocation of the company’s partial share premium to compensate for the total accumulated loss. This move will clear the accumulated loss in the financial statements and enable the payment of dividends to shareholders when the company generates profits in the future.

Additionally, SHR approved issuing and offering debentures up to THB 5,000 million to support future growth. The company will consider issuing and offering debentures based on the need for funds to expand its business, generate long-term returns for shareholders, and repay existing loans.

Mr De Cuyper emphasized the return of international tourists following the lifting of global travel restrictions, along with the strength of their business strategy, as vital factors for achieving maximum growth and delivering outstanding performance across all portfolios. He expressed confidence in exceeding THB 10,000 million in revenue, achieving an average occupancy rate of over 75%, and delivering significant profit growth to establish a new profit base for SHR’s future expansion.