Company remains fully committed to the UK market with plans to reinvest sale funds in the renovation of its top-tier hotels in the country, following significant THB 560m investments in February 2021
For Immediate Release 20 April 2021
BANGKOK, THAILAND: S Hotels and Resorts Public Company Limited (SET: SHR), the flagship hospitality arm of Singha Estate PCL (SET: S), has disclosed its intention to divest a selection of its underperforming hotel assets in the United Kingdom, as part of its strategy to optimise its UK portfolio and maximise returns.
The company announced today that it intends to enter into a sale agreement for the 73-key Mercure Newbury Elcot Park. S Hotels & Resorts in the amount of GBP 4.25 million (equivalent to THB 182 million). In addition, the company is also considering to dispose up to five other UK hotels in the portfolio which have been identified as non-core assets. Proceed from sales will be used to reinvest in the renovation of core hotel assets in the portfolio to lift up the product and potentially enhance their profitability.
Mr. Dirk De Cuyper, Chief Executive Officer of S Hotels & Resorts, revealed that the transaction forms part of the company’s portfolio enhancement strategy comprises three elements:
Strategically, we believe the optimal number of hotels in this portfolio should be around 20-21 hotels and in the medium to long run we wish to uplift the EBITDA performance of this portfolio back to the peak level of GBP 18 million (THB 720 million equivalent).
“This is a part of our strategic direction to focus on maximising our portfolio returns and creating value for the company and its investors.” Mr. De Cuyper commented.
In February 2021, S Hotels & Resorts invested THB 560 million to purchase additional 50% stakes in 26 of its 29 UK hotels, raising its total ownership of these properties to 100%. This marked a significant commitment to the UK, reflecting the company’s confidence in the future of the country’s hospitality sector. S Hotels & Resorts believes that ongoing international travel restrictions and the UK’s successful vaccination programme will drive domestic tourism demand in 2021, followed by the recovery of inter-regional travel from 2022.
|About S Hotels & Resorts Public Company Limited|
S Hotels and Resorts Public Company Limited (SHR), the hospitality arm of Singha Estate Public Company Limited, is a fast-growing, Thai-inspired company with an extensive international portfolio and world-class standards. Specialising in the management and investment of high-quality hotels and resorts in desirable destinations across the globe, SHR has created a collection of its own distinctive lifestyle brands, whilst also partnering with the hospitality industry’s leading names. The company aims to set new standards for leisure and lifestyle through diversified business platforms and to enhance value for all its stakeholders based upon a philosophy of sustainable development and delivering benefits to local communities. To learn more, please visit www.shotelsresorts.com or follow us on Facebook, Instagram, Youtube, or LinkedIn.
For more information and high-resolution images, contact:
Lalita Somboonsuk (Ta)
Corporate Marketing Communications Manager
S Hotels & Resorts | Singha Estate PCL
Tel: +66 (0) 2058-9888 ext. 320
CEO, Delivering Asia Communications
Tel: +66 (0) 2246 1159