SHR sees revenue hitting B10bn this year

Mr De Cuyper, right, and Mr Chairath at an S Hotels & Resorts press conference held on Tuesday.

SET-listed S Hotels & Resorts (SHR) is expecting 10 billion baht in revenue this year, a record high and an increase of 20% from last year.

Dirk De Cuyper, chief executive of SHR, said the company forecasts consecutive growth from last year with a strong average room rate and occupancy rate thanks to global tourism arrivals, which are forecast to increase by 30% this year, and China's reopening.

Thailand will contribute the fastest growth across all regions at 60% year-on-year, with a revenue contribution of 16% or one-third of earnings before interest, taxes, depreciation and amortisation, mainly driven by international visitors.

With robust demand for beach destinations, it could drive Thailand towards more upscale and luxury markets, which consequently helped increase room rates, said Mr De Cuyper.

The occupancy rate of SHR's properties in Phuket and Phi Phi island hit 90-95% in the first two months.

Its average room rate also surged by two to three times from the past few years, said Chairath Sivapornpan, acting chief financial officer of SHR.

He said of 10 billion baht in revenue expected for this year, the highest contribution would derive from the UK and Maldives at 36% and 31%, respectively.

Mr Cuyper at a press conference of S Hotels & Resorts held on Tuesday.

SHR has allocated 7.5 billion baht for a three-year investment, which would be spent via mergers and acquisitions focusing on the leisure tourism at diverse geographical locations, said Mr De Cuyper.

These potential locations include Japan, Bali, Greece, Spain, Portugal, countries in the Indian Ocean near Africa, Mauritius and Seychelles, plus new locations in Thailand.

Around 1-1.5 billion baht of the budget would be earmarked for renovations, including three to five properties in the UK, Outrigger Fiji Beach Resort, Crossroads Maldives, SAii Phi Phi Island Village and SAii Laguna Phuket, said Mr Chairath.

After renovation, the average room rate could also be upgraded by between 15-40%.

The occupancy rate of all properties is estimated to reach 75% this year.

In 2022, SHR posted 14 million baht in net profit with the average room rate rising 20% year-on-year. The occupancy rate stood at 60%.

SHR also plans to grow its own SAii brand with five management contracts in the next three years, focusing on Thailand.