Business Value Chain

SHR’s business value chain encompasses key activities that are efficiently interconnected—from internal processes in self-managed hotels to the development of new projects and the renovation of existing properties. The aim is to deliver exceptional guest experiences, promote social and environmental sustainability, and strengthen the Company's competitiveness in the market.

1. Self-Managed Hotels and Hotels under Hotel Management Agreements (HMA)
   Operations begin with the management of self-managed hotels and those under hotel management agreements (HMA), with a strong focus on maximizing customer satisfaction. This is achieved through effective marketing, user-friendly booking platforms, and continuous customer satisfaction assessments to improve service quality. SHR also prioritizes eco-friendly procurement and local employment to support community economies. Additionally, employee development and training are emphasized to ensure high-quality service delivery.
2. Hotels Managed by Third Parties / SHR-Owned Hotels in the United Kingdom / Hotels under Joint Ventures
   The expansion of hotels managed by third parties, SHR-owned hotels in the United Kingdom, and hotels under joint ventures helps build strong relationships with external partners. This strategy increases growth opportunities and business diversification. SHR is committed to maintaining high service standards and efficient management in both marketing and operations to ensure all hotels remain sustainably competitive in the market.
3. Projects Under Development and Renovation
   For new project developments and the renovation of existing hotels, SHR aims to enhance competitiveness and better meet customer needs. These efforts enrich the guest experience and add long-term value to the business. The procurement and supplier management processes emphasize high-quality, long-lasting products and services. SHR also focuses on building strong community relationships and engaging in local activities to foster long-term collaboration and support sustainable development.

All activities across SHR’s business value chain are ultimately driven by the goal of delivering customer satisfaction, reflected in the form of an Enriching Journey—a memorable and meaningful stay. This not only includes quality service but also contributes to the sustainable development of society and local communities, and the preservation of nature and biodiversity in a healthy and lasting way.

Materiality Assessment

1. Identifying Material Sustainability Issues
The Company has conducted an analysis and review of its sustainability context, covering the entire business value chain to assess both financial and non-financial impacts, including broader social and environmental changes such as climate change. The Company has established a framework for identifying material sustainability topics, guided by national and international standards, principles, and sustainability frameworks that are aligned with the current business landscape. These include:

• Global Reporting Initiative (GRI) – A widely recognized standard for sustainability reporting, disclosing the economic, social, and environmental impacts of business activities.
• SET ESG Rating – A set of sector-specific sustainability topics developed by the Stock Exchange of Thailand for the service industry.
• United Nations Sustainable Development Goals (SDGs) – A global agenda that addresses social, economic, and environmental challenges.
• Green Globe Certification – An internationally recognized certification standard for sustainability in the hospitality sector.
• The Company’s Sustainability Philosophy and Policy – The core principles guiding the Company’s sustainability management approach.
• Stakeholder Input and Expectations – Gathered through various channels such as internal communications, management meetings, and surveys conducted with employees and local communities.

2. Prioritizing Key Issues
The Company reviewed its existing Sustainability Materiality Matrix in consultation with executives and the sustainability development team of Singha Estate Public Company Limited. This process involved reassessing and prioritizing material issues based on:

• Influence on Stakeholder Assessments and Decisions, and
• Significance of Economic, Environmental, and Social Impacts in alignment with GRI Standards.

3. Ensuring Comprehensive Coverage
The identified sustainability topics were thoroughly reviewed to ensure completeness. The finalized material issues were then presented to the Chief Executive Officer and the Corporate Governance and Sustainability Development Committee for feedback and validation. This ensures that the Company’s material issues reflect the genuine needs and expectations of stakeholders while remaining consistent with the Company’s sustainability direction.

4. Communicate with Stakeholders
The Company places great importance on maintaining transparent and ongoing communication with all stakeholder groups. This approach helps ensure stakeholders’ confidence in the Company’s sustainability performance and responsiveness to emerging material issues in a timely and relevant manner, amid evolving economic, social, and environmental contexts.