SHR emphazises on the performance of CROSSROADS project in Maldives and believes its UK hotel portfolio will flourish in the second half of 2021
published : 14 May 2021 at 12:23
S Hotels & Resorts Plc (SHR) has revised its strategies to create a business stability through the revenue and customer diversifications. In particular, this was contributed to the opportunity for business recovery after COVID-19 crisis. The company invested THB 560 million to purchase 26 UK hotels in February 2021, followed by the divestment on a selection of its hotel assets. Proceed from sales will be used to reinvest in the renovation of top-tier hotel in the countries. Nonetheless, SHR was successful in adapting major commercial strategies and introducing a new homegrown brand for attracting Thai residents. The Q1/2021 performance reflected a recovery with 83% rise in revenue from the previous quarter.
SHR, the flagship hospitality company of Singha Estate Plc, reported its operational results for the first quarter of 2021 with total revenue of Bt. 544 million, showing clear signs of recovery by 83% improvement from the fourth quarter of 2020 (QoQ). This was primarily attributable to the strong performance of Project CROSSROADS in Maldives and the partial revenue recognition from UK Portfolio hotels.
SHR hotels in Thailand were successful in adapting major commercial strategies to attract domestic travelers which is not the company’s major customer base. Along with the rebranding of Outrigger Laguna Phuket Beach Resort and Phi Phi Island Beach Resort to the first two “SAii” resorts in Thailand, consisting of SAii Laguna Phuket and SAii Phi Phi Isaland Village. The two SAii resorts are now working on cross-selling opportunities, to maximise the benefits of these two important sectors. An attractive new website and booking engine has helped to drive more direct reservations, and next-generation revenue management, channel management and business intelligence solutions are optimising the performance of both resorts.
Mr. Dirk De Cuyper, Chief Executive Officer of S Hotels & Resorts Plc, said “We are thrilled with the response to our first two SAii resorts in Thailand. Thai residents, including expats, have really taken this homegrown brand to their hearts, and we cannot thank our customers enough for their support. This acclaim, along with the popularity of SAii Lagoon Maldives, gives us great confidence in the future. We hope that international borders will fully reopen soon, and that more international travellers will be able to experience the warm and gracious Thai hospitality that SAii specialises in. We are also seeking opportunities to expand into new and highly desirable destinations worldwide,”
In April 2021, SHR has entered into a sale agreement for the 73-key Mercure Newbury Elcot Park in an amount of GBP 4.25 million (equivalent to THB 182 million), as part of its strategy to optimise its UK portfolio and maximise returns. In addition, the company is also considering to dispose 4 - 5 other hotels in the UK portfolio. Proceed from the sales will be used to reinvest in the renovation of core hotel assets in the portfolio to lift up the product and potentially enhance their profitability. We wish to uplift the EBITDA performance of this portfolio back to the peak level of GBP 18 million (THB 720 million equivalent).
Meanwhile, the UK Portfolio is expected to have progressive improvement in the second half of 2021, benefited by the success in COVID-19 vaccination program. In relation to the four-steps for reopening of social and economic activities, started from April 2021. The positive impact reflection will enhance the portfolios’ performance in the high season of the countries during 3rd – 4th quarter of 2021.
The company has revised the strategies across many key metrics in order to effectively response to the unfolding COVID-19 pandemic and the tourism industry in several conditions of each country. "We are confident that in 2021, once the COVID-19 situation alleviates and the roll-out of vaccination program is proceeding as planned, the tourism and hospitality industries will bounce back strongly. SHR is ready to drive our business back while protecting environment and maintaining its stringent health and hygiene measures”. said Dirk De Cuyper, CEO, S Hotels & Resorts.