SET-listed S Hotels & Resorts (SHR) will invest 7.3 billion baht to triple its revenue by 2024, starting with a target of 8.5 billion baht this year, driven by hotel operations in the UK and the Maldives.
Dirk De Cuyper, SHR chief executive, said 2021 represented a milestone for revenue growth at 188%, derived from strong pent-up demand in the UK and the Maldives. This demand has continued into 2022 which, along with border reopenings, could drive total revenue to 8.5 billion baht.
Last year, the company earned revenue of 4.51 billion baht, compared to 1.56 billion baht in 2020, thanks to tourism improvements in the UK. The UK saw revenue per available room grow 166%, while the Maldives enjoyed 135% growth.
Mr De Cuyper said the average daily rate, which grew by 20-25%, was one of the key factors that could support stronger revenue.
Meanwhile, direct bookings are expected to generate 30% of revenue, up from 10% during 2018-2021, as more locals opt for it to make use of the hotel subsidy campaign We Travel Together.
SHR currently operates 38 properties with 4,522 rooms. Of the total revenue this year, 44% will come from the UK, which has a promising outlook from both leisure and Mice (meetings, incentives, conventions and exhibitions), followed by the Maldives (28%), Thailand (13%), Fiji (10%) and Mauritius (5%).
Mr De Cuyper said SHR plans to triple its revenue in three years with an investment budget of 7.3 billion baht, of which 2.8 billion baht will be used for asset rotation, with a major focus on the UK at 490 million baht this year, and the construction of the SO/ Maldives resort slated for 2023.
Another 4.5 billion baht will be for mergers and acquisitions of new properties in Asia Pacific, and the Mediterranean and Indian ocean.
It will also roll out the asset-light model to manage SHR's brand or partner with international brands.
Mr De Cuyper said the Russia-Ukraine war has had only a minimal impact, as his hotel's proportion of Russian tourists was relatively small.
However, new variants and travel restrictions remain the most critical concerns for hotel business in Thailand.
"The government should listen to feedback and opinions from private sectors and quickly respond, in order to bring back international travellers to Thailand," Mr De Cuyper said.
