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S Hotels & Resorts shows a positive THB 208 million net profit for Q3 2022 – its first post-Covid profit

S Hotels and Resorts PCL, the flagship hospitality arm of Singha Estate PCL, reported total revenue of THB 2,362 million in Q3 2022, a quarter-on-quarter rise, and a net profit of THB 208 million, which is a significant rebound from the previous quarter and year-on-year. The outlook for Q4 remains positive with strong confidence in exceeding the revenue target of THB 8,500 million.

S Hotels & Resorts has announced its financial results with total revenue of THB 6,123 million for the first nine months of 2022, doubling the performance of the same period in 2021, driven by revenue growth across the Company’s whole portfolio. The key performers were the two hotels at CROSSROADS Maldives, which achieved average occupancy of 67%, and year-on-year ADR improvement by 41%. The UK portfolio hotels rebounded strongly after Covid-19 with a significant leap in ADR to reach the highest in their history at GBP 89 in Q3, and raising the nine-month RevPAR above the 2019 pre-Covid level. Meanwhile, the Company saw strong pent-up demand in Fiji, Mauritius and Thailand, increasing to THB 1,012 million – more than 22 times higher than the same period last year.

S Hotels & Resorts looks forward to a strong Q4, driven by the robust recovery of its Thai hotels, which is reflected by a 44% increase in international tourism arrivals in October 2022 compared to the previous month, to reach 3.1 million – almost the same level as average monthly tourist arrivals in 2019. With the aforementioned factors, combined with the efficiency of hotel management in Thailand, the Company saw its average occupancy in Thailand reach 71% in October 2022, led by SAii Phi Phi Island Village and SAii Laguna Phuket, which registered occupancy of 81% and 77% respectively. Occupancy is expected to continue its upward trend in Q4 2022 and Q1 2023, with strong ADR surpassing pre-Covid levels. The hotels at CROSSROADS Maldives will also play a key role in the Q4 growth as the Maldives enters its peak season.

Mr. Dirk De Cuyper, Chief Executive Officer of S Hotels and Resorts PCL, said: “The leisure recovery was better than expected thanks to the strong potential of the locations in our portfolio, which are among the top five most desirable holiday destinations in the world. Our hotels, with strong unique selling points and our proactive commercial approach, will see a 90% performance improvement versus last year.”

S Hotels & Resorts has been named as one of the 170 companies on the Thailand Sustainability Investment (THIS) list for 2022. It met the THSI criteria by integrating sustainability into its business strategies with a deep commitment to creating value for stakeholders. The Company has pledged to integrate the UN’s Sustainable Development Goals (SDGs) into every aspect of its operations, including SDG11, “Sustainable Cities & Communities” and SDG14, “Life Below Water”. By incorporating community projects into its developments, the company believes that it can spread the benefits of tourism to everyone involved in the industry, including its local destinations.

Moreover, the Company is in the process of improving the efficiency of our portfolio, especially in the UK, where an asset rotation strategy has been implemented, with the disposal of underperforming assets and investment in high-potential properties. This year, the Company completed the sales of Mercure Burton upon Trent Newton Park in May and Mercure London Watford in October, for a total amount of GBP 19 million. In August, the Company acquired the leasehold for Mercure Perth for GBP 2.7million, to convert the asset from historically loss-making to profit generating.

Outrigger Fiji Beach Resort is undergoing major renovation, which started October 2022 and is expected to run until the end of 2023. This will uplift the guest rooms, public areas and dining venues, with an expected ADR growth of 10-15%. Moreover, as S Hotels & Resorts is seeing strong trends towards luxury travel and product demand in the Maldives, and is repositioning some of its standard rooms as pool suites to meet this customer demands, with expected ADR growth of 15-20%.

“We are confident of a good year-end with the continued positive performance of our global portfolio. We have also set a robust growth plan for 2023, particularly focusing on the development and enhancement of our existing products to lift our market position and drive RevPAR. Therefore, we’ve set a revenue target of THB 10,000 million for 2023.  Furthermore, we are looking forward to the opening of the luxury SO/ Maldives towards the end of 2023,” added Mr. Dirk De Cuyper.

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