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Singha Estate Announces Hospitality Business Spin-off, Underline Its Vision to Become ‘Global Holding Company’

BANGKOK – 15 May 2019 -- Singha Estate (Public Company Limited) announced plans to spin off the company’s hospitality business - S Hotels & Resorts. The transaction is expected to increase the fit and focus and strategic flexibility for hotel investment and management in response to the growing tourism industry worldwide, as well as stressing the company’s vision towards becoming ‘Global Holding Company’.


Mr Naris Cheyklin, Chief Executive Officer, Singha Estate PCL said that Singha Estate invests through three core businesses – commercial and retail, residential, and hospitality. The company envisions itself to become "Global Holding Company" through multi-investment strategy including greenfield development, merger and acquisition and joint venture in compliance with our prudent investment policy. This would enable us to fulfill the best interest to the Company and our stakeholders.


“2019 is an important year for Singha Estate as it is the year we can recognize the revenues from our investment and our own project development in the previous years, while delivering our performance as planned. With our vision to become "Global Holding Company" through solid business platform, optimal capital structure, as well as sustainable growth, we have successfully done a number of fund raising in the capital market. First, we listed our subsidiary - Nirvana Daii PLC – in the Stock Exchange of Thailand, and in 2019 we launched SPRIME – our first investment trust investing in the office space of Suntowers Building – with overwhelming demand from investors. This time, we are pursuing the IPO of our flagship hotel business - S Hotels & Resorts Public Company Limited with the company philosophy to enlighten a new era of travel experience, as well as preserve local way of lives and the environment. The transaction will also strengthen our financial capability and increase investment opportunity of Singha Estate, and allow S Hotels & Resorts to penetrate the growing tourism industry and new business opportunity,” said Mr Naris.


Mr Naris said further that the growth of the hospitality business results from our diversified customer base, the promising growth of tourism industry and an increase on demand of hotel customers’ spending across the board. According to the information from The World Tourism Organization (UNWTO), international tourist arrivals grew 6% in 2018, totaling 1.4 billion. Asia has recorded a total of 343 million international tourist arrivals and South-East Asia has seen the arrival numbers grew at 7%. For 2019, UNWTO forecasts the arrival numbers to increase, particularly in Asia where the growth has been estimated at 5-6%. Meanwhile, according to World Travel & Tourism Council (WTCC) on tourism trends, consumers still desire to experience unspoiled locales to provide an exclusive playground built around nature, culture, wellness and adventure, and learn about sustainable tourism. Hence, this is the best time for business expansion and our hotel business is in its full bloom. Today, S Hotels & Resorts owns a total of 39 hotels with a total of 4,647 keys in top destinations like The Republic of Maldives, The Republic of Fiji, The Republic of Mauritius, The United Kingdom, and Thailand, all of which are attracting diverse numbers of tourist worldwide and earned the company steady revenues. This, together with the company’s expansion plan into destinations around the globe and the focus on sustainable development and tourism is another significant stepping stone for Singha Estate’s path towards becoming ‘Global Holding Company’”


Mr. Dirk De Cuyper, Chief Hospitality Officer, S Hotels & Resorts PCL commented, “S Hotels & Resorts aims to be a premier hotel investment and resort management company by crafting quality settings in a sustainable environment where guests can relax, play, work, enjoy and share instant stories. Through our property management and asset ownership, we strive to create unique travel experiences for our guests while driving financial growth and creating value for our stakeholders.”


Speaking on the philosophy of sustainable development, Dirk added, “We carry out various Corporate Social Responsibility projects at our properties, giving the importance of setting the business direction that ensures sustainable development and the balance of community, society and the environment.”


With a strategic business plan, S Hotels & Resorts is able to target a diversified group of travelers from various segments at global tourism destinations with its assets expanding steadily over the past few years. “Since our establishment in 2014 with two properties in Thailand with 227 rooms, S Hotels & Resorts have successfully grown to a portfolio of 39 properties with a total of 4,647 keys in 5 countries across three regions, namely the United Kingdom, Thailand, Maldives, Fiji and Mauritius.” Dirk commented.


The company’s segmentation based on its asset categories can be identified as followed:

  •  Early establishment in Thailand, owned and managed by S Hotels & Resorts: consist of Phi Phi Island Village Beach Resort and Santiburi Koh Samui
  • Joint Venture with FICO UK: consist of 29 hotels under the brands of Mercure and Holiday Inn.
  • Acquisition of Outrigger Resorts: consist of six resorts operated under the brand Outrigger.
  • Leasehold and development over the Project CROSSROADS Maldives: consist the development and operations of three islands in the Republic of Maldives, comprising three hotels: SAii Lagoon Maldives, Curio Collection by Hilton, Hard Rock Hotel Maldives and a lifestyle resort under development, as well as an integrated lifestyle hub namely the Marina @ CROSSROADS.


Speaking of the brand development under the umbrella of S Hotels & Resorts, Dirk added, “Following our strategic business focus, we have been developing a new upper upscale resort brand – ‘SAii’ – which will be applied firstly at SAii Lagoon Maldives as part of the groundbreaking CROSSROADS project. We also plan to explore further opportunities to target upper mid-scale market.”


Mrs Thitima Rungkwansiriroj, Chief Financial Officer, Singha Estate PCL added that the hotel business is one of the key businesses that generate recurring income for the company. In 2018, the business was able to generate 34% of the company's total revenue from its 8 owned hotels and net income from the operation of total 4,271 rooms in 37 hotels worldwide (excluding hotels in the CROSSROADS). The listing of S Hotels & Resorts will create the opportunity to expand the business in the hotel portfolio and provide the opportunity to invest in new projects both in brownfield or greenfield phases with readiness on funding and human resources.


“S Hotels & Resorts’ IPO offering at the Stock Exchange of Thailand (SET) will not exceed 40 per cent of the company's post-IPO paid-up capital. S Hotels & Resorts still remain one of the subsidiaries of Singha Estate in which will possess majority holding not less than 51 per cent of its shares. CIMB Thai Bank PCL and Krung Thai Bank PCL will act as financial advisors, while we will disclose the list of underwriters on further stage. Also, we have plans to offer S Hotels & Resorts’ IPO in both domestic and international markets.”


S Hotels & Resorts has submitted the filing application and draft prospectus to the Securities and Exchange Commission Thailand (SEC) on 13 May 2019. Investors can find out more information about S Hotels & Resorts’ IPO from the prospectus at www.sec.or.th and www.shotelsresorts.com.


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ABOUT SINGHA ESTATE PUBLIC COMPANY LIMITED 

Singha Estate is a premier property development and investment holding company focusing on investing in high potential business, driving corporate position to become a premier holding company through robust financial status and premium quality product offerings, building strong and sustainable growth through a well-balanced portfolio. The company is growing its business with an optimum portfolio of Commercial, Hospitality, and Residential sector. The corporate is heading towards a full-fledged global holding company, with a commitment of good corporate citizenship that delivers sustainable values to all stakeholders.

About Singha Estate Public Limited Company
Singha Estate is a premier property development and investment holding company committed to business operation with social responsibility and adherence to the philosophy of sustainable growth. The Company strives to balance economic growth with social and environmental stability, build growth through well balanced, diversified portfolio from retail space rent business, office building rent, hotel business and residential business, and invest in high potential businesses both at home and overseas. It aims to drive its corporate position to become a premier global investment holding company with robust financial status and value proposition to all its stakeholders on a sustainable basis.

For more information, please contact:

Singha Estate Plc 123 Suntowers Building B, 22nd Floor, Vibhavadi-Rangsit Road, Chom Phon,

Chatuchak, Bangkok 10900

Tel. +66 (0) 2050-5555

www.singhaestate.co.th

 

Corporate Public Relations

Atiroj Chotpornsawat (Tae) - PR Manager

Tel. 089 118 9110

Email: Atiroj.c@singhaestate.co.th

Napisa Iamchueun (Pao) - Assistant PR Manager

Tel. 095 414 1549

Email: Napisa.i@singhaestate.co.th

For media inquiries, please contact:

Paworawan Chansamut

FleishmanHillard

Tel. +662-821-5913 #012, +6689-109-0807

Email: Paworawan.Chansamut@fleishman.com

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