Singha Estate eyes 34% revenue growth

Singha Estate eyes 34% revenue growth

Developer Singha Estate Plc wants revenue to grow by 34% to 17 billion baht this year as its tourism business, which contributes more than two-thirds of total revenue, enjoys a strong rebound.

Chief executive Thitima Rungkwansiriroj said the company's hotel business would continue to be robust thanks to the growth in average daily rates at its Thai properties, which could potentially reach up to 3.5 times pre-pandemic levels in the current quarter.

"The hospitality business under SHR [S Hotels and Resorts] management aims to increase the occupancy rate to achieve an all-time high of 75%, with expected revenue surpassing 10 billion baht in 2023," she said.

For the residential development business, the company plans to launch at least five new projects worth more than 10 billion baht, and earn 4 billion baht in revenue by the end of 2023, an increase of 70% from 2022.

The new projects comprise three single detached house projects in outer city locations and two cluster home projects in the central business district with units priced from 15 million baht to more than 100 million.

One of the cluster home projects is located on a two-rai plot on Sukhumvit Soi 43, comprising two single detached houses priced at 550 million baht a unit.

"The concept of the cluster home project is on a plot sized no larger than 10 rai in central business district areas so we can realise revenue in a shorter period," Mrs Thitima said.

"They will be presale units that customers can customise."

This year the company will invest 4-5 billion baht in its residential development business, which will include purchases of new plots and construction, she said.

The hotel business and an industrial estate in Ang Thong will receive a budget of 1 billion baht each.

By the end of 2023, the company expects to have 1 billion baht in revenue from land sales at the industrial estate in Ang Thong, and 2 billion baht from its commercial business, which comprises three office towers, said Mrs Thitima.

Singha Estate plans to spend 700 million baht to buy back a 50% stake in a subsidiary that was a joint venture with Hongkong Land Ltd.

The subsidiary is the developer of super-luxury condominium The Esse Sukhumvit 36.

As of last year the project, which has 338 units worth 5.9 billion baht, had sold 77% of its units.

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