S Hotels and Resorts reports record-breaking revenues in 2024

Singha Estate PCL’s hospitality arm S Hotels and Resorts PCL announced its 2024 financial results, revealing a record revenue of 10.352 billion baht.

The total reflects the ongoing expansion in global tourism demand. 

The company’s fourth-quarter net profit surged to 147 million baht, more than double the result from the previous quarter.

The significant jump is attributed to the accelerated completion of the SAii Laguna Phuket renovation, as well as the robust recovery of S Hotels and Resorts’ property in the Republic of Mauritius. 

These results also underscore the company’s enhanced efficiency in financial cost management.

SHR CEO Michael Marshall reported: “The substantial performance growth this quarter reflects the resilience and potential of SHR’s portfolio, and validates the company’s robust business development approach. In addition to the exceptional performance of our Thai properties and Outrigger hotels, we have successfully increased RevPAR at the CROSSROADS Maldives project, amidst heightened competitive pricing in the Maldives. Looking forward to 2025, we aim to complete the renovation plans of three additional hotels in the United Kingdom. This initiative aims to uplift the asset quality, enhance service standards, rebrand and reposition while maintaining stringent cost and expense management, thereby maximising the portfolio’s revenue and profit potential.”

The performance report

During the fourth quarter of 2024, the company recorded revenue of 2,606.7 million baht. 

This growth was driven by the successful launch of new vacation experiences at SAii Laguna Phuket, which effectively catered to target tourist segments, resulting in a room rate increase exceeding 30 percent, and the full operational recovery of Outrigger Mauritius Beach Resort. 

Furthermore, a commitment to improve operating efficiency and cost management, particularly a reduction of over 20 percent in costs compared to the fourth quarter of the preceding year, significantly contributed to a net profit increase exceeding 130 percent during this period.

SHR’s 2024 revenue reached a record high of 10,352 million baht, representing a seven percent YoY increase. 

This impressive growth was driven by the robust performance of the company’s hotel and resort portfolio, which demonstrated impressive growth across most locations. 

This success underscores the efficacy of a flexible business strategy, encompassing proactive marketing initiatives to optimize the market mix in the Maldives, alongside the ongoing enhancement of asset quality and service standards under the SAii brand, thereby strengthening core operations. 

As a result, SHR’s 2024 core operating profit surged 25% to 1,246 million baht, while net profit rose 55 percent to 134 million baht.

In recognition of these strong results, the Board of Directors has resolved to propose a dividend payment of 0.03 baht per share from 2024 earnings, doubling the 2023 payout.

Developments in terms of profitability enhancement

Beyond its financial growth, the Company made significant strides in its portfolio profitability enhancement strategy. 

Notable achievements include the October opening of Mount Royal Edinburgh by The Unlimited Collection in the United Kingdom, in partnership with The Ascott Limited. 

This was followed by the December launch of SAii Laguna Phuket after its renovation completion, with overwhelming positive response, and the brand enhancement of SAii Koh Samui Villas as well as the debut of Thailand’s inaugural SAii Beach Club. 

As of February 2025, the Company also successfully issued debentures in the amount of 1.7 billion baht, further optimizing its finance costs as well as preparing for further business expansion.

Outlook for the year

The company’s performance outlook for the first quarter of 2025 shows continued strong growth both YoY and QoQ. 

This is evidenced by the expansion of advance room bookings across almost all regions, particularly in Thailand, where the RevPAR for January grew by 25 percent YoY, primarily driven by a 45 percent increase in room rates at SAii Laguna Phuket. 

Concurrently, SO/ Maldives experienced a surge in performance during the high season, with occupancy rates reaching 75 percent and average room rates exceeding US$900. 

Based on these positive trends, coupled with ongoing operational efficiency management and an anticipated eight to ten percent reduction in finance costs compared to 2024, 

SHR’s overall performance in 2025 is projected to deliver significant growth.

Marshall concluded by saying: “The promising starts in January serve as an important foundational step in our pursuit of this year’s strategic goals. This is a result of the collective dedication of everyone at SHR in delivering exceptional guest experiences. In 2025, we will be resolutely focused on maximizing RevPAR across all market conditions. This will be realised through the implementation of agile business strategies, designed to proactively address potential challenges and drive sustainable profit growth.”