With tourism steadily returning to normalcy in many countries, S Hotels and Resorts Pcl., a Thailand-based holding company involved in the hospitality management and hotel investment business, anticipates achieving revenue of more than THB10,000 million this year thanks to a solid performance of Thailand and Maldives hotel portfolios.
S Hotels and Resorts Pcl. (SET: SHR) announced during an analyst meeting on Wednesday (March 8), that the company’s target for 2023 is to achieve a total income of at least THB10,000 million, a 15% increase over the previous year, with an estimated revenue per available room (RevPAR) rise of 25% YoY from hotel operations throughout the world, especially in the United Kingdom, and surpassing the pre-Covid level.
Hotel occupancy rates in the Maldives and Thailand were both at 90% for the first two months of the year (January and February), compared to 63% and 72%, respectively, in the fourth quarter of last year. However, despite the low season, the occupancy rate in the United Kingdom in January was 64%, as corporate clients rebounded. SHR forecasted that the upward trend in demand for travel would maintain its pace in 1Q23, allowing the firm to achieve its long-term goal of annualised growth in its operating performance. However, quarterly forecasts call for a modest increase in normal profit.
Several analysts have maintained their “BUY” recommendation on SHR, based on the company’s outlook and the stock’s low valuation, and the expectation that the 5th phase of the “Rao Tiew Duay Kan” (We Travel Together) scheme will boost demand for travel.
Finansia Syrus Securities (FSS) and Yuanta Securities both have THB5.30 price targets and “BUY” ratings on SHR.