SET-listed Singha Estate is aiming for a 20% revenue growth from 2023, targeting 18 billion baht by the end of 2024, with the hospitality business being the key driver, fuelled by a robust global tourism sector.
Chief executive Thitima Rungkwansiriroj said the recovery of the tourism business varied from country to country. One of the world's fastest-growing destinations post-pandemic was the Maldives.
"The robust growth at The Crossroads, our resorts in the Maldives, was able to help our hotel business achieve growth last year. This trend will continue this year," she said.
The company expects to have a 25% growth in revenue per available room and an increase of 15% in non-room revenue by the end of 2024.
To achieve this, it will renovate some hotels which are in good locations such as Edinburgh, Scotland to capture more value and uplift revenue.
Of the 18-billion-baht revenue target, 60% will be derived from hotels, 30% from residential development business, 7% from four office towers for rent, and 3% from an industrial estate in Ang Thong.
At present, the company's land bank for residential development business will be able to support new projects in the next three to five years. The key products will be in the high-end segment with units priced above 15 million baht per unit.
The company expects to have a growth of 50% in revenue this year from its residential development business.
As of the end of 2023, the company had a sales backlog of 3.4 billion baht. Of this amount, 3 billion baht will be realised in 2024.
One of the new residential projects it will launch this year is a condo project on Rama III Road with unit prices of 180,000 baht per square metre. This is a joint venture with property firm One Real Estate.
It will also expand outside Bangkok for the first time with a mixed-use project worth 10 billion baht on a 24-rai plot in Si Racha, Chon Buri, featuring offices for rent and condo units priced at 3 million baht. This marks the first time the company will enter the lower-end market.