Singha Estate PCL, a prominent real estate development company, has announced strong performance in its hospitality division for the second quarter of 2024. The company reported revenue of 2,469.1 million baht, a significant increase attributed to the global tourism rebound and the successful renovation of hotel rooms in Thailand and Fiji. These upgrades contributed to a 15% rise in the average daily rate (ADR) across Singha Estate’s hotel portfolio.
The positive impact of these improvements was reflected in the company’s net profit, which surged to 40 million baht for the first half of 2024, a substantial increase from 7.7 million baht in the same period last year. The introduction of new accommodation options catering to the experiential travel market, particularly in Fiji, further boosted performance, with a 46% increase in revenue at two properties.
Enhanced marketing campaigns and dynamic pricing strategies played a crucial role in attracting a diverse clientele and increasing the average revenue per available room (RevPAR). CROSSROADS Maldives saw a 12% RevPAR growth, while three Thai hotels witnessed a 17% increase. These gains helped offset the impact of 173 room closures at SAii Laguna Phuket for upgrades since mid-April 2024.
The quarter saw an 8% revenue increase and a remarkable 27% surge in EBITDA, reaching 563.7 million baht. For the first half of 2024, Singha Estate’s service revenue climbed 8% to 5,211.9 million baht, reflecting the continued recovery and expansion in the tourism sectors of Thailand, Maldives, and Fiji.
However, the company experienced a decline in revenue from the UK 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 divestment led to a reduction in annual interest expenses by approximately 20 million baht and lowered the debt-to-equity ratio to 0.81, strengthening the company’s financial position and enhancing its prospects for future growth.
