S Hotels & Resorts’ Business Platform and Portfolio Attracted Leading Institutional Investors During October’s Roadshows in Singapore and Hong Kong
S Hotels & Resorts Public Company Limited, a flagship hospitality arm of SET-listed Singha Estate Public Company Limited, is confident that its 4 business platforms and a portfolio of 39 hotels with a total of 4,647 rooms in various popular tourist destinations in 5 countries will attract investor interest and drive sustainable growth.
Mr. Chairath Sivapornpan, Chief Financial Officer of S Hotels & Resorts Plc or “SHR”, discloses that SHR attracted an interest from leading institutional investors in roadshows in Hong Kong and Singapore organized last month as its business platforms are interesting.
The portfolio comprises 1) self-managed resorts consisting of Phi Phi Island Village Beach Resort and Santiburi Koh Samui in Thailand; 2) Outrigger branded resorts operated under hotel management agreement with 6 properties in Thailand, Fiji, Mauritius and Maldives; 3) CROSSROADS Maldives Project Phase One including SAii Lagoon Maldives, Curio Collection by Hilton, Hard Rock Hotel Maldives and The Marina @ CROSSROADS – integrated leisure and lifestyle destination; and 4) 29 hotels under the Mercure and Holiday Inn brands in the United Kingdom.
“We received positive feedback from institutional investors about our strategic business platform. Our portfolio is diversified in 5 countries including Thailand, the United Kingdom, Republic of Maldives, Republic of Fiji and Republic of Mauritius, and each destination has different seasonality and targeted travellers. In Fiji, the high season is in the second and third quarters with travellers from main feeder markets such as Australia and New Zealand. For Thailand, the high season is in the fourth and first quarters of the year, with travellers from long-haul markets such as Europe,” said Mr. Chairath.
SHR is also opening a new chapter of the Maldives’ tourism sector with CROSSROADS, an integrated leisure and lifestyle destination featuring a luxurious yacht marina, a variety of shops and dining outlets, wellness facilities and kids’ facilities, a multi-purpose event hall, Maldives Discovery Centre and Marine Discovery Centre and two resorts opened in the Phase One of the project.
During 2016-2018, SHR posted an average growth rate of 63.1% per year with total revenue of 968 million baht, 1,074 million baht and 2,575.7 million baht, respectively. In the first half of 2019, the company recorded 1,751.8 million baht in revenue, up 144.8% from the same period a year earlier. Earnings before interest, tax, depreciation and amortization (EBITDA) grew consistently on an average of 58.5% per annum over the past 3 years. Consolidated EBITDA was 348.9 million baht, 514.3 million baht and 877.4 million baht, respectively. EBITDA in the first half of 2019 was 461.6 million baht, a 73.5% increase from the same period last year. The rise of revenue and EBITDA over the past 3 years was mainly driven by an improved management efficiency and an acquisition of 6 Outrigger resorts in 2018.
SHR received an approval from the Securities and Exchange Commission to offer initial public offering (IPO) with not exceeding 1,437,456,000 shares, equivalent to not exceeding 40% of the company’s issued and paid-up shares. The company sold out its IPO shares at 5.20 baht per share during November 1-5, 2019 and successfully raised 7,475 million baht in total as planned. The first trading day on the Stock Exchange of Thailand will be on November 12, 2019.
“We will use the proceeds from the IPO to pay debt from the investment in Outrigger hotels and the expected debt-to-equity ratio will reduce to no more than 0.5 from 1 time as of the first half of 2019. We will spend 5-7 billion baht per annum in hotel acquisition and development to expand our portfolio from the current 39 hotels and 4,647 rooms to 80 hotels with 8,000-9,000 rooms by 2025, aiming at 3 to 4.5 stars in a size of 100-300 rooms in various destinations in South East Asia, Indian Ocean, South Pacific and around the Mediterranean,” Mr. Chairath added.
