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S Hotels & Resorts Announces Solid Performance for The First Half of 2023, Is on Track to Achieve End of Year Revenue Targets



BANGKOK, THAILAND – S Hotels and Resorts PCL (SET: SHR), the global hospitality company from Singha Estate PCL (SET: S), announced accelerating total revenue from services of THB 4,821 million (+28% YoY), and jumping adjusted EBITDA of THB 1,112 million (+74% YoY) for the first half of 2023. The performance was derived from 69% occupancy rate of the overall portfolio in the first six months of 2023, compared with 54% occupancy rate recorded during the same period in the previous year, and an increase of 11% in average daily rate (ADR) from the first half of 2022.

The properties in Thailand have reflected a concrete recovery in Thai tourism industry which is close to the pre-pandemic level after the country has fully opened the border. The performance has illustrated the improved occupancy rate from January to June 2023, registering an average of 76%, compared to 48% recorded in the first half of 2022. This was mainly due to increased domestic travelling and international holidaymakers opting for Thailand beach holidays. Through destination marketing and strong distribution channels, SHR’s Thai properties stand out as top destinations in travellers’ minds, inducing the ability to command higher ADR. The ADR in the first half of 2023 was THB 8,431, significant growth of 72% compared to the same period of last year.

The economic challenges in Europe at present have affected the traveling behavior, driving the European to travel more in their own countries or within the region. This has resulted in the ability of SHR’s UK properties to maintain positive momentum as the majority of the guests or approximately 90% was composed of local tourists. The UK portfolio has recorded an occupancy rate of 70% from January to June 2023, compared to 54% during the first six months of the previous year. Through market adaptions and hotels room product renovations, demand remains favorable in the UK properties. Additionally, the ADR in the first half of 2023, was up by 10%, at approximately GBP 83 amid consumers’ discretionary spending strained by higher living costs. Moreover, the operating performance for the second quarter and the first half of this year showed the growing EBITDA margin from higher cost and expenses management efficiency. It is expected that both the occupancy rate and ADR in 3Q23 will continue to increase, supporting by the advance booking during the high season. This reflects the confidence in the corporate and leisure industry for domestic and international travel.

The change in the European’s traveling behavior mentioned earlier has also affected the properties’ performance at CROSSROADS Maldives. CROSSROADS Maldives recorded an occupancy rate above 87% but slowed down in 2Q23 due to seasonality impact with lower number of tourists from Europe who travel to overseas less and slower-than-expected recovery of Chinese tourist. This result in an overall performance in the first half of 2023, comparable with that of 2022. Looking conservatively ahead towards the end of this year, SHR foresees a relatively similar performance compared to last year in occupancy however this rate is in a sensitive market as tourists are expected to explore other destinations, corresponding with fully opened borders around the world. Additionally, the Europeans prefer to travel domestically while the return of Chinese tourists is slower than expected.

The property in Mauritius has been temporarily closed for a complete overhaul and upgrade of the water management system and will reopen in the fourth quarter of this year, making only a minimal impact on SHR’s annual performance as the Mauritius property accounts for just 3% of total revenue.

Our operating performance in the first half of the year has been highly satisfactory, especially with the statistics in Thailand and the UK showing positive signs of continued strong recovery. Properties in other locations, for instance, the Maldives and the Fiji Islands, also show a promising trajectory. The customers base in Fiji has been expanded, welcoming more tourists from North America especially the Canadians to the properties, apart from the current market share dominators who are the Australians and the New Zealanders. We are confident that the tourism sector will remain strong with the support from the new market expansion. Castaway Island – Fiji has enjoyed an occupancy rate of over 93% during the second quarter, while CROSSROADS Maldives has recorded a consistent performance despite the low season. The outlook for the remainder of the year looks promising for most of our operating regions. In addition, the aviation business is recovering well, with more flight schedules being announced with new routes in the second half of this year. This allows passengers to reach their holiday destinations more conveniently, thereby supporting a growing hospitality sector.

We have committed to the improvement and implementation of various digital technology platforms to accommodate dynamic customer demand in the market. In addition, we are ambitious to boost portfolio efficiency by deploying the optimal RevPAR management strategies from the renovations in many hotels in Thailand, Fiji, and the UK whose new rooms will be ready to welcome guests towards the end of 2023. All of these initiatives together with our strict cost measurement will support our trajectory towards revenue targets of over THB 10,000 million. We are doing our best to meet those targets to satisfy all our stakeholders towards the end of 2023. Mr. Dirk De Cuyper, Chief Executive Officer of S Hotels & Resorts

SHR is prompt to overcome challenges thanks to a strong financial position where leverage is constantly maintained at a low level and capital expenditures have been managed efficiently. TRIS rated SHR at “BBB+” and a good credit rating will pave the way for SHR to acquire a lower cost of capital and grow more efficiently. At present, the debenture issuance plan is proceeding as scheduled.

Finally, SHR continues to put sustainability at the heart of its operations, and those efforts have been recognized with six properties receiving Green Globe™ Certifications. This reassures investors and hotel visitors that SHR hotel operations comply with international standards and expectations. Starting in 2023, SHR has strategically laid out its plan to become a carbon-neutral company by 2030. In doing so, SHR is taking more responsible actions in local communities and the environment, minimizing impact in order to preserve the locations of its properties for the next generation. These activities not only foster a strong bond between SHR and the community but also position SHR as an eco-friendly and sustainable option for environmentally conscious tourists from all over the world For more information about S Hotels & Resorts, please visit www.shotelsresorts.com or follow us on Facebook, Instagram, YouTube or LinkedIn.

About S Hotels & Resorts Public Company Limited

S Hotels and Resorts Public Company Limited, the hospitality arm of Singha Estate Public Company Limited, is a fast-growing, Thai-inspired company with an extensive international portfolio and world-class standards. Specialising in the management and investment of high-quality hotels and resorts in desirable destinations across the globe, S Hotels & Resorts has created a collection of its own distinctive lifestyle brands, whilst also partnering with the hospitality industry’s leading names. The company aims to set new standards for leisure and lifestyle through diversified business platforms and to enhance value for all its stakeholders based upon a philosophy of sustainable development and delivering benefits to local communities. To learn more, please visit www.shotelsresorts.com or follow us on Facebook, Instagram, Youtube, or LinkedIn

Lalita Somboonsuk (Ta)
Corporate Marketing Communications Manager
S Hotels & Resorts





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