Singha Estate Public Company Limited announces a net profit of THB 71 million from its Q1/2023, a remarkable result reversed from 126-million-baht loss recorded in the same period a year earlier. The company also reveals its plan to expand its business further in 2023. To boost its business growth, it will launch five residential projects and capitalize on its Industrial Estate Business unit and Commercial Business unit which have been proceeding well as planned.
In the last quarter, Singha Estate’s Hospitality Business grew significantly because all countries as a global have already re-opened. The Hospitality Business earned THB 2,544 million from sales and services, marking an increase of 51% year-over-year, with all four hotel portfolios enjoyed business growth. Its hotels in Thailand performed particularly well, with their revenue jumping by more than three folds in Q1/2023 as the average occupancy rate rose above 88% and Average Daily Rate (ADR) soared by more than 8% from the pre-COVID rate. All these figures underline the strengths of Singha Estate’s Hospitality Business unit, with its hotels in strategic locations or major tourist destinations.
Two of its hotels in the CROSSROADS project pulled off impressive operating results as they successfully attracted various groups of tourists worldwide. Their average occupancy rate jumped above 88%, and their revenue per available room (RevPAR) reached an all-time high since their launch. These achievements resulted from the strategy to manage RevPAR with maximum efficiency and room renovation that was focused on new tourism trends. Tourism in both Thailand and Maldives are expected to be vibrant throughout 2023. These two hotel portfolios account for about 50% of Singha Estate’s total revenue.
Thitima Rungkwansiriroj, Chief Executive Officer at Singha Estate Public Company Limited or ‘S’, reveals that Q1/2023 operating results reflect the strongest signs of the Hospitality Business unit’s recovery. In the first quarter of this year, all hotels could fully serve tourists. Their strong performance signals that the hospitality business will grow continuously in the following quarters.
Singha Estate is thus now confident that it will achieve the revenue target of THB 16,700 million in 2023. Of the amount, THB 10,000 million will come from the Hospitality Business unit, while the Residential Property Business will also make significant contributions. in the face of global re-opening, the Residential Property Business unit will benefit from rebounding ready-to-move-in condominium projects. Singha Estate is well poised to compete for opportunities presented by the re-opening. It has now raised its stake in The ESSE Sukhumvit 36 to fully recognize revenue and profit from this project.
Singha Estate expects the project to contribute hugely to its operating results in the second and third quarters of 2023. In the fourth quarter, the company is then set to recognize revenue from the transfers of units in its upcoming projects that are expected to fly high, just like SIRANINN Residences. Winning warm customer responses, the SIRANINN Residences achieved remarkable operating results in 2022.
Singha Estate plans to expand its horizontal resident projects and diversify its portfolio in terms of locations and target groups. In 2023, the company will launch five horizontal resident projects with a combined value of THB 10,000 million. Moreover, it has already allocated a land-purchase budget to support its plan to launch at least four more projects each year for the ultimate goal of achieving a compound annual growth rate (CAGR) of 20% for its Residential Property Business by 2025.
In addition to three projects in Bangkok’s high-potential locations that will be unveiled later this year, Singha Estate will diversify its horizontal resident projects further in line with its Speed to Market strategy. Under this strategy, its projects will strongly emphasize customer insights and exclusive touch. With the right size, each project will offer privacy in Singha Estate’s cluster home stylized. Developed as a private estate in the heart of the Sukhumvit area, its flagship project will soon be launched at the starting price of THB 550 million per unit. Furthermore, Singha Estate aims to develop a new project in Ramintra area. With a starting price of THB 100 million per unit, this new project is scheduled for launch in the second quarter of 2023.
Two other business units of Singha Estate are also set to significantly contribute to its growth this year as follows: (1) Commercial Property Business unit will recognize revenue from S-OASIS for a full year in 2023. With more than 53,000 square meters of leasable space, this recently launched project has received much interest. Key tenants have already signed contracts on nearly 9,000 square meters of its leasable spaces; and (2) Industrial Estate and Infrastructure Business unit has already transferred 87 rai of land to customers. It also has
approximately 900 more rai for development and further transfers to customers. Singha Estate expects the business’ land sales to pick up in 2023 in line with its industrial estate unit’s progressing public-utility system and the commercial launch of two power plants, which are scheduled to take place at its estate in the fourth quarter of this year. These two businesses, therefore, look set to drive and sustain Singha Estate’s profit growth.
“Singha Estate will be driving its businesses with all its might in 2023 based on its S EXCELS or business-excellence strategy. The goals are to drive operations towards All-Time High Revenue and Profit Targets and to achieve continued business growth with the mission of generating good returns for shareholders, delivering excellent products to customers, and giving sustainable value to all groups of stakeholders,” Thitima adds.
Central Pattana Q1 2023 earnings 10.29 billion baht