S Hotels & Resorts moves forward to build a multi-purpose meeting hall in Outrigger Laguna Phuket Beach Resort and develop a high-end resort on Island 3 in the CROSSROADS Maldives
S Hotels & Resorts Public Company Limited or ‘SHR’, the hospitality arm of Singha Estate Public Company Limited, is moving forward to build a multi-purpose meeting hall in Outrigger Laguna Phuket Beach Resort and develop a high-end resort on Island 3 in the CROSSROADS Maldives as part of its business expansion strategies in 2020.
Mr. Dirk De Cuyper, Chief Executive Officer of S Hotels & Resorts Plc, revealed that although the tourism industry has received impact from several challenging factors including the global outbreak of COVID-19 (also known as the coronavirus), the company will continue to make new investments to expand its hotel business this year. SHR is closely monitoring market feedback, travel advisories and performance forecast throughout the COVID-19 period. Commercial strategies has been set from short term, mid term to long term, corresponding to the predictions of market recovery from COVID-19.
“We expect that tourists from major source markets will resume their spending on travels from the recovery period after the outbreak stablizes, particularly from the postponed business and recreation trips since the COVID-19 outbreak due to health and safety concerns. With a proactive preparation on both commercial strategies and operational procedures, we are confident on the readiness of our hotels and resorts,” he said.
Properties under SHR’s operation have been facing challenges of booking cancellations in February and March due to the spread of COVID-19. The company has set a policy to offer customers the flexibility to switch room cancellations to postponements of travelling to later this year.
In order to respond to more diversified market segments in Phuket, especially to the MICE market, SHR will build a multi-purpose meeting hall in Outrigger Laguna Phuket Beach Resort featuring capacity of up to 350 delegates. The meeting hall is expected to be completed by this month.
Aside from the renovation project in Thailand, SHR has entered a joint venture partnership with Wai Eco World Developer Pte (WEWD), a big conglomerate from Myanmar with business interests in gems and jewelries, food and beverages and production facilities, to develop a high-end lifestyle resort on Island 3 in the CROSSROADS Maldives. The new resort will comprise 80 water villas with a room rate around US$900-1,000 per night. The new resort development will support SHR to have a more diversified portfolio in the Maldives. The construction is expected to start this year and will be completed in 2022.
Mr. Chairath Sivapornpan, Chief Financial Officer of S Hotels & Resorts Plc, said that the company already received US$16.2 million from the sale of 50% stake in Prime Locations Management 3 Ltd, the operator of the lifestyle resort project on Island 3 in the CROSSROADS Maldives, to WEWD in the middle of last month.
Mr. Chairath noted that 2020 is the year SHR will receive full-year revenue from the resorts in the CROSSROADS Maldives – SAii Lagoon Maldives, Curio Collection by Hilton, and Hard Rock Hotel Maldives. Connected with the two resorts, the CROSSROADS also operates The Marina @ CROSSROADS, a recreation and entertainment center comprising a luxurious 30-berth yacht marina, beach club, restaurants, retail shops, multipurpose event hall and various leisure activities.
SHR targets to double its hospitality portfolio to 80 properties with over 8,000 rooms by 2025, up from 39 hotels with 4,647 rooms presently, on average 15% growth rate per year.
Last year, the company recorded total revenue of 3,818 million baht, rising 48% from the year before, and its adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) was 1,133 million baht, surging 30%. Average occupancy rate of self-managed properties in 2019 stood at 72%, the Outrigger portfolio at 78%, properties in the CROSSROADS at 34% (open in September 2019), and the UK hotels at 70%.
