Singha Estate upbeat on raising hotel income
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Singha Estate upbeat on raising hotel income

SET-listed property firm Singha Estate Plc is expecting double growth in hotel income this year and a significant increase in residential revenue from the return of foreign arrivals in the second half after the country's reopening.

Chief financial officer Chairath Sivapornpan said revenue from hotel business would rise from 4.5 billion baht in 2021 to 9 billion baht in 2022 as all of its hotels will fully recover.

"Last year, only hotels in the UK and the Maldives could resume. But this year, all properties across the board are performing," he said.

"Our hotel business in the second half will be very good as we saw a good momentum starting in May."

In the first quarter, hotels in Thailand, particularly those in Phuket and Koh Phi Phi, had a good performance with the occupancy rate rising to 70-80% in April from 60%, driven by domestic demand.

The return of international travellers after the country's reopening, particularly those from Asia and Europe, will boost occupancy of its hotels in Thailand in the third quarter.

It also hopes to attract high-spending tourists in the fourth quarter.

He said the reopening on May 1 also helped drive revenue from residential business in 2022 as foreign buyers were able to visit the country to get units transferred from condo projects they purchased.

As of the end of March, it had a sales backlog of 2.9 billion baht, of which 1.74 billion baht will be recognised between April and December after realising 1 billion baht in the first quarter.

It also aims to have 600 million baht in revenue in the fourth quarter from a new low-rise housing project worth 3.3 billion baht in Phatthanakan Soi 32 which will be launched in the third quarter.

Mr Chairath said the company plans to spend 20 billion baht in 2023-25 or around 7 billion baht per year for residential development which includes land purchase and construction costs.

Next month it will realise 300 million baht from the sale of a 77-rai plot which will be the first piece of land sold in its industrial estate business in S Industrial Estate in Ang Thong where it owns a total of 1,790.5 rai.

In the third quarter, it will also lease out Singha Complex, an office building on Asoke Road with a lettable area of 48,000 square metres valued at 5.43 billion baht to S Prime Growth Leasehold Real Estate Investment Trust.

Last year it had a net loss of 481 million baht, improving from a net loss of 629 million baht in 2020.

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