SET-listed S Hotels & Resorts (SHR) expects the recovery momentum for tourism in the UK, Maldives and Fiji in July will continue throughout this year and into 2022 as it aims for revenue growth of 10-15% next year.
Chief financial officer Samitta Tinnam said the upward trend in the three countries' tourism industry started last month, with the UK recording the highest jump in hotel occupancy, from 18% and 34% in the first and second quarters to 59%.
"The key driver was a recovery in domestic demand after England lifted its lockdown restrictions on July 19," she said.
"The uptrend will continue in the second half of the year as the country steps into the high season."
In the UK, SHR had 28 hotels totalling 2,990 rooms which accounted for 66% of its portfolio.
In February this year, SHR purchased the remaining 50% stake of 26 hotels from Fico Holding UK valued at 560 million baht.
She said thanks to the UK consolidation which delivered 556 million baht in revenue from March to June this year, SHR's revenue in the first half rose 17% to 1.34 billion baht.
The proportion of revenue from the UK soared from 17% in the first quarter to 59% in the second quarter.
However, SHR plans to divest 4-6 hotels in the UK where performance was low to focus on those with more potential.
At the moment, its top 10 hotels in the UK had a combined profit accounting for 60-70% of the 28 hotels in total.
Another key driver of first-half revenue was from hotels and resorts in the Maldives which represented 35% of the first half revenue.
In July 2021, the Indian Ocean islands opened for foreign tourists from India and other South Asian countries.
The occupancy of three hotels totalling 429 rooms in the Crossroads project, rose from 44% in the second quarter to 56% in July.
Fiji, where the firm has two hotels with 318 rooms, would likely have a tourism recovery in October this year.
The country will reopen once 80% of its population is protected by vaccines. Its key tourist markets are Australia, New Zealand, the US and Canada.
"It remains challenging for our hotels in Thailand as the reopening plan, the vaccination rollouts and herd immunity are still unclear," said Ms Samitta.
"But Phuket sandbox helped boost our hotel in the province to grow by 40% in the first half."
She said hotel business in Thailand would gradually improve in the third quarter, but occupancy may stat at 15-30% before ramping up in the fourth quarter.
With positive momentum, it expects to have 4-4.5 billion baht in revenue by the end of 2021 and growth of 10-15% in 2022.