SHR aims to double revenue, become No. 2 Thai hotel operator in 2022
S Hotels & Resorts Plc (SHR), Singha Estate Pcl’s hospitality arm, expects growth to hit a record-high revenue of THB8.5 billion in 2022, nearly doubling year on year, from THB4.5 billion in 2021.
The growth will push SHR to become the No. 2 Thai hotel operator in terms of revenue, due to the fast recovery in tourism, its well-diversified hospitality portfolios, upgraded services and offerings to reach high tourist demands, and enhanced direct booking.
SHR held an online press conference on Thursday to reveal its plans and goals for 2022.
“The tourism sector continues to recover in many parts of the world. We foresee increasing demand in the hospitality business, including our properties in the five top leisure destinations, particularly in the UK and The Maldives, whose contributions accounted for 44 per cent and 28 per cent, respectively,” said SHR’s chief executive officer, Dirk De Cuyper.
Another key factor that will drive 2022 revenue is the success of the property renovation and the creation of value-added features in all identified potential properties to cater to guests' various preferences and lifestyle needs, he said.
Three SHR properties have been renovated and undergone brand conversion to align with the homegrown brand and self-managed platform,
SHR’s strategy in driving the business using digital marketing to create customised platforms for the wider implementation of direct booking has given the company more resilience and adaptability. In 2022, the company expects revenue contribution from direct bookings to total revenue to increase from an average of 10 per cent in previous years to 30 per cent in 2022, he said.
As part of a three-year plan, the company has earmarked approximately THB7.3 billion to further expand the growth of portfolios. A total budget of THB2.8 billion has been set aside to enhance its asset rotation strategy for existing properties and the construction of SO/Maldives, which is set to launch in 2023. The other THB4.5 billion is set for the merger and acquisition plan for new properties.
“For new properties, we have eyed M&A [mergers and acquisitions] projects around the Asia-Pacific coast and the Mediterranean and Indian Ocean within the THB4.5 billion budget. We also aim to focus on being a hotel operator, either through a flagship homegrown brand or partnering with leading international brands for business expansion. With the efforts, we target to reach our goals of tripling our size within 2024," added De Cuyper.
