BANGKOK, THAILAND: The public-listed S Hotels and Resorts PCL reports total revenue from services of THB4,821 million, accelerating +28% year-on-year during the first half of the year,
Affiliated to the parent corporation Singha Estate PCL also listed on the Stock Exchange of Thailand S Hotels and Resorts PCL said accelerating total revenue jumped the adjusted EBITDA of THB 1,112 million (+74% YoY) for the first half of 2023.
The performance was derived from the 69% occupancy rate of the overall portfolio in the first six months of 2023, compared with the 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 company said its properties in Thailand reflected a concrete recovery close to the pre-pandemic level after the country fully opened its 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.
The ADR in the first half of 2023 was THB8,431, significant growth of 72% compared to last year.
In its statement on the half-year performance, the group identified economic challenges in Europe that are driving residents to travel more in their own countries or within the EU region. This enabled SHR’s UK properties to maintain positive momentum as most of the guests, or approximately 90%, were domestic tourists.
The group’s UK portfolio recorded an occupancy rate of 70% from January to June 2023, compared to 54% during the first six months of the previous year. Demand remains favourable in UK properties. Additionally, the ADR in the first half of 2023 was up by 10%, at approximately UKP83, amid consumers’ discretionary spending strained by higher living costs.
The change in European travelling behaviour also impacted the performance at Crossroads Maldives. The brand recorded an occupancy rate above 87% but registered a slowdown in 2Q23 due to the seasonality impact with fewer tourists from Europe and a slower-than-expected recovery in China’s outbound travel market. It resulted in overall performance in the first half of 2023 that was 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 worldwide. Additionally, the Europeans prefer to travel domestically while the return of Chinese tourists is slower than expected,” the group’s statement explained.
The group’s property in Mauritius has been temporarily closed for a complete overhaul and upgrade of the water management system. It 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.
