Singha Estate Public Company Ltd’s hospitality management firm S Hotels and Resorts Public Company Limited (SHR)revealed its financial performance from the first quarter of 2025.
SHR announced a net profit of 176 million baht, marking a substantial growth of 57 percent from the same period of last year.
The result reflects cost management efficiencies in parallel with a continued commitment to financial restructuring to strengthen the foundation for stable and sustainable growth.
In Q1-2025, SHR reported total revenue from hotel business and services of 2,622 million baht, strongly driven from four core properties in Thailand especially from SAii Laguna Phuket that had an outstanding performance after the completion of asset enhancement during the end of 2024.
As a result, SAii Laguna Phuket lifted its average daily room rate (ADR) up to 16,404 baht in January 2025, up 45 percent from the same period last year, marking a new record high since the beginning of its operations.
In addition, average ADR of the first quarter of 2025 rose by 31 percent to 12,951 baht and the average revenue per available room (RevPAR) grew by 23 percent, driving a 12 percent YoY increase in Q1’25 RevPAR for the self-managed hotel portfolio in Thailand.
This reflects the success of enhancing the potential of properties within the portfolio, aligned with the company’s strategy to elevate the quality of core assets.
It highlights the distinct identity of the SAii brand through international standards and enhanced service offerings.
Relevant developments
This outstanding performance was also supported by the strong rebound of Outrigger Mauritius Beach Resort, which achieved a 16 percent YoY increase in RevPAR, and the performance of SO/ Maldives, after its first full year of operations, accelerated its growth with a remarkable 93% YoY surge in Q1 RevPAR.
SHR chief executive Michael Marshall explained that, throughout the years, the company has remained committed to enhancing its business capabilities in line with strategic initiatives designed to strengthen its investment portfolio including hotel and resort renovation projects, brand elevation efforts, and improvements in portfolio and service efficiency which all of them have steadily yielded results.
In addition, according to the diversified strategic locations, the company’s proactive marketing strategies and optimised sales channel development have made it possible to access new high-potential markets, playing a key role in driving room rates and diversifying revenue streams.
Furthermore, the company continues to prioritise efficient management practices to maximise operational performance under all market conditions.
Therefore, the company could report Earnings before Interest Taxes Depreciation and Amortization (EBITDA) at 770 million baht, five percent higher than the previous year with Earnings before Interest Taxes Depreciation and Amortization Margin (EBITDA Margin) of 29 percent up from 27 percent in Q1-2024.
What to expect from the second quarter
While the second quarter of the year is considered a slow season within the hospitality industry, the company strongly believes that the performance will continue to move in line with the target, especially during the Easter Holiday in April, coming in three weeks later than it did last year.
This will be another key factor in stimulating travel demand, particularly from European and North American markets.
For 2025, the company has set a revenue target of THB 11 billion and anticipates a significant surge in net profit, driven by strong hotel revenue growth, particularly in Thailand and the Maldives.
The growth will be supported by effective and appropriate cost control measures.
Besides growing its revenue, the company aims to achieve an EBITDA margin improvement of 1 to 1.5 percent compared to the previous year and will continue its financial strategy to reduce interest expenses by optimising debt structure, expecting the decrease in average interest rate by 50–100 basis points compared to the previous year.
This could contribute to significant finance cost saving in the future.
The company also intends to manage appropriate funding sources to lift operational potential and strengthen long-term financial stability both from negotiation with banks to achieve the best financing terms and conditions as well as issuance of corporate debentures.
The success of 1,700 million baht bond issuance during the first quarter, with the primary objectives of optimising the existing debt structure and reducing finance costs, will be a foundation to support sustainable long-term growth as well as reinforce investor confidence and strengthen relationships with business partners in the years to come.
Marshall concluded the report by stating: “The company remains focused on executing its profit-driven strategy while maintaining its growth targets for 2025. It will continue to leverage its strengths in cost management as well as capitalize on the continual recovery of global tourism. Additionally, the company places strong emphasis on the ongoing development and enhancement of its hotel brands to create differentiation and competitiveness at the international stage.”
