Home » HOTEL NEWS » S Hotels & Resorts Sees Strong First Half In 2024 With 40 Million Baht Net Profit
Friday, August 16, 2024
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Singha Estate PCL, a premier development entity, showcased impressive performance in its hospitality division for the second quarter of 2024, posting a revenue of 2,469.1 million baht. The surge in revenue is attributed to heightened tourism activity globally and the successful refurbishment of hotel rooms in Thailand and Fiji. These upgrades led to a 15% rise in the average daily rate (ADR) across their portfolio. Consequently, the company celebrated a substantial rise in net profit, soaring to 40 million baht for the first half of 2024—up from 7.7 million baht in the prior year.
The launch of novel accommodation options catering to the experiential travel market significantly boosted performance, particularly in Fiji, marking a 46% increase at two properties. Enhanced marketing efforts and dynamic pricing strategies also played a role, attracting a diverse guest mix and raising the average revenue per available room (RevPAR) by 12% and 17% for CROSSROADS Maldives and three Thai hotels, respectively. These gains helped offset the impact of 173 room closures at SAii Laguna Phuket for upgrades since mid-April 2024. Overall, the quarter saw an 8% revenue boost and a 27% increase in EBITDA, which totaled 563.7 million baht.
For the first half of the year, Singha Estate’s service revenue climbed 8% to 5,211.9 million baht, reflecting the continuous recovery and expansion in the tourism sectors of Thailand, Maldives, and Fiji. However, UK revenues declined following the termination of a hotel management contract and the sale of Mercure Wetherby in May 2024 for 5.8 million pounds (approximately 269.5 million baht). This sale not only reduced annual interest expenses by about 20 million baht but also decreased the debt-to-equity ratio to 0.81, enhancing the company’s financial health and future growth prospects.
