Strong rebound in travel and tourism sector set to increase the company’s net profit in 2023.
BANGKOK, THAILAND – S Hotels and Resorts PCL, the global hospitality company from Singha Estate PCL, generated revenue from sales and services of THB 8,963 million in 2022, which marks a 93% year-on-year growth. This remarkable performance was higher than expected, driven by the global recovery of travel, tourism and hospitality. In Q4 2022, revenue reached THB 2,570 million with net profit of THB 108 million. This represented the second consecutive quarter of profit, which emphasises the strength of the business. The positive momentum is set to continue this year with increased revenue and net profit expected in 2023.
The company’s strong 2022 revenue – which was almost double the figure from the previous year – was boosted by rising earnings in the company’s four hospitality investment portfolios. Particularly strong performance was seen in the Maldives and United Kingdom, which enjoyed a full-year rebound in 2022.
At CROSSROADS Maldives, the integrated lifestyle development which attracts all tourist segments, achieved average occupancy of 66% and recorded a 28% increase in average daily rate (ADR), compared to 2021 – driven by room renovations to better travel demand. The UK portfolio saw 10% higher occupancy and an 8% increase in ADR, to reach its highest-ever performance. As a result, revenue per available room (RevPAR) rose to GBP 48 per night, surpassing the pre-Covid period.
Performance in the Outrigger portfolio also beat expectations, driven by high pent-up demand. Occupancy surged 64% and ADR increased 48% compared to 2021, resulting in an overall performance for 2022 that was stronger than the pre-pandemic.
Hotels in Thailand experienced a strong upturn in performance in the latter months of 2022, as international travel restrictions were removed. This resulted in a 57% occupancy rate, while a combination of business restructuring and a positive response to the SAii brand helped to drive a 67% jump in ADR.
Revenue growth was seen in four successive quarters last year due to the progressive tourism recovery. Thus, Q4 2022 recorded a new high for revenue, backed by the peak seasons in Thailand and the Maldives. The popularity of SAii Resorts in Thailand helped to increase ADR by 17%, which enabled ADR and RevPAR for Thai properties to exceed pre-pandemic levels. This positive momentum has continued in January 2023, as occupancy reached 90% at both Thai and Maldives portfolio hotels. The company expects a solid performance in Q1 2023, including a 30% increase in these two portfolios compared to Q4 2022. The Thai hotels and CROSSROADS Maldives will play an important role in driving the company’s financial performance in 2023.
Mr. Dirk De Cuyper, Chief Executive Officer of S Hotels & Resorts, said: “Our 2022 performance achieved our target and almost doubled our revenue. This was the result of the strength of our business platform, our astute strategy, and our risk-diversifying management. We also focused on improving our services to respond to travellers’ needs and enhancing our direct booking platform. S Hotels & Resorts proved its strength and resilience last year. The company’s growth was above the industry’s average and this will set solid foundations to support our future expansion.”
S Hotels & Resorts expects that the recovery of global travel will accelerate this year, particularly as China’s borders have now reopened. Chinese travellers account for about 10% and 20% of the group’s business in Thailand and the Maldives respectively. The company also unveil new projects this year, which will drive performance for years to come. The third property at CROSSROADS Maldives, SO/ Maldives is set to open in Q4 2023 and will become a new jewel in the Maldives’ tourism crown, setting the standard for the luxury lifestyle hospitality in the archipelago and strengthening the luxury market for the CROSSROADS project.
S Hotels & Resorts’ 2023 business strategy includes asset management, which is expected to boost revenue by 20%, while higher profitability will be driven by rising ADR, efficiency enhancements and cost deductions. From Q4 2022 onwards, we saw a positive impact from the plunge of utility costs in the UK and we assume this will continue in 2023. Our main focus is on building a strong financial position which will allow the group to expand its investment portfolio via acquisitions and asset management to create long-term growth for shareholders.
“We are confident that S Hotels & Resorts will deliver another impressive year with our 2023 strategic direction. The revenue is expected to surge beyond THB 10 billion, driven by our efficient RevPAR management, new investments and strong branding with SAii. In addition, working alongside our business partners is key factor that will push forwards S Hotels & Resorts to maintain its position as a leading player in the hotel industry. We also focus on sustainable growth and will continue to build our business on the principles of balance, sustainability and integration to create accountability and value for customers, shareholders and stakeholders under the basis of risk management and corporate governance,” Mr De Cuyper concluded.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.