S Hotels & Resorts’ 3P Strategy Propels THB10bn Sustainable Tourism Growth

March 21, 2023

610

S Hotels & Resorts, the hospitality investment and management company and the hospitality arm of Singha Estate PLC, has outlined its plans to generate THB 10bn in revenue in 2023, leveraging its 3P strategy of “Profit, Portfolio, Planet”.
This strategy is based on increasing profitability through business expansion and operational efficiency; expanding the investment portfolio by means of asset rotation & enhancement, mergers & acquisitions and asset-light operations; and embracing sustainable development to create a positive impact on the planet. The company expects to retain its position as the No. 2 Thai hotel brand in terms of revenue, based on a diverse customer base from around the world. The company’s 2023 plan is supported by its diversified portfolios, including a cluster of four hotels in Thailand, which is expected to contribute around 16% of the total company’s revenue in 2023, while hotels in the Maldives and the UK are expected to account for 31% and 36% of the total revenue.

The company aims to increase revenue beyond THB 10bn (+20% YoY), with occupancy across all portfolios expected to be around 75%. The company’s operational results in 2022 exceeded the breakeven point, resulting in a net profit, and with operations now running at full capacity, the company predicts a 15% occupancy rate growth in 2023, driving significant profit growth to build a new foundation for future growth.

S Hotels & Resorts plans to expand its portfolio by implementing three key models: asset rotation & enhancement, mergers & acquisitions, and asset-light operations. The company will sell matured assets in the UK and use the sale proceeds, supplemented by an additional investment of around GBP 16m on renovating high-potential assets offering positive upward growth in the future. The company has a plan in place to renovate SAii resorts in Thailand, including SAii Phi Phi Island Village and SAii Laguna Phuket, with the works set to straddle 2023 and 2024. The Outrigger Fiji Beach Resort, which has been under renovation since October 2022, is expected to be completed in December 2023. The renovation investment will cost the company between THB 1bn and THB 1.5bn, and the company expects to increase the ADR by between 15% and 40% for the renovated projects.

To promote sustainable tourism, S Hotels & Resorts has implemented several initiatives that have helped the company to achieve significant recognition, such as inclusion in The Stock Exchange of Thailand’s “Thailand Sustainability Investment” list for 2022 and a five-star corporate governance rating from the Thai Institute of Directors Association in conjunction with the SET. The company’s initiatives include measures to reduce single-use plastic, carbon emissions, and food waste, as well as investing in renewable energy and supporting local communities.

S Hotels & Resorts is committed to adopting digital technology platforms to support direct bookings, which will help the company increase ADR and RevPar significantly and consistently. The company is also implementing strict health and safety measures to provide a safe environment for guests and staff.

In conclusion, S Hotels & Resorts’ 3P strategy, which focuses on Profit, Portfolio, and Planet, has proven to be a successful approach to sustainable growth in tourism. With its robust business strategies and economic tailwinds, the company is well positioned to exceed THB 10bn in revenue for the first time in 2023, retaining its position as the No. 2 Thai hotel operator in terms of revenue for the second consecutive year. The company’s commitment to sustainable development, digital technology platforms, and strict health and safety measures ensure that it will continue to be a leading hospitality investment and management company.