S Hotels & Resorts flags an 18% of revenue growth in Q1 and reveals proactive strategies in preparation for the reopening of its properties
S Hotels and Resorts Public Company Limited or ‘SHR’, the hospitality arm of Singha Estate Public Company Limited, revealed its Q1/2020 performance with a total revenue of THB 1,145 million or an 18% rise comparing to the same period last year, and a net profit of THB 235 million.
Mr. Chairath Sivapornpan, Chief Financial Officer of S Hotels & Resorts Plc, revealed that although the tourism industry has received significant impacts from the global outbreak of COVID-19, SHR still managed to generate a comparative rise on revenue in Q1 with increased profits.
The revenue growth was driven by the two new resorts, SAii Lagoon Maldives and Hard Rock Hotel Maldives, as well as the first ultimate leisure complex, The Marina @ CROSSROADS, opened in September 2019 as part of the groundbreaking project CROSSROADS Maldives. The company also reported a net profit of THB 235 million, mainly resulted from the completed sale of 50% stake in Prime Locations Management 3 Ltd to Wai Eco World Developer Pte (WEWD), a big conglomerate from Myanmar, to develop a high-end lifestyle resort on Island 3 in the CROSSROADS Maldives following its business expansion strategies in 2020. The construction is expected to start this year and to be completed by 2022.
“We have seen a great business performance at the start of the year amongst our properties, particularly with high occupancy achieved at both of the two new resorts in the Maldives, but the demands have slowed down from February and March at each destination due to the pandemic which has affected our operating profits. However, we still managed to obtain a net profit of THB 235 million with a complete sale of 50% stake through the successful joint venture partnership between SHR and WEWD,” he added.
S Hotels & Resorts has suspended majority of its hotel operations since April, following the lockdown measures implemented by the countries where SHR owns or operates its businesses, with the exception of some hotels in United Kingdom continuing their operations in support to host personnel from essential sectors.