Singha Estate Unveils Its 2023 Business Plan, Aiming for Excellence in All Dimensions with the “S EXCELS” Strategy, Targeting Revenue of THB 17 Billion and Creating All-Time High Profits
Singha Estate Unveils Its 2023 Business Plan,
Aiming for Excellence in All Dimensions with the “S EXCELS”
Strategy,
Targeting Revenue of THB 17 Billion and Creating All-Time
High Profits
Bangkok
(20 March 2023) - Singha Estate Public Company Limited will
drive business growth aggressively in 2023 with the “S EXCELS” strategy, aiming
for excellence in all dimensions, reaffirming the Sustainable Diversity vision
to create a synergistically diversification and sustainable business growth, and
increasing the total revenue by 34% from the previous year or over THB 16.7
billion. Singha Estate aims to open at least five new horizontal residence projects
worth over THB 10 billion, while their commercial real estate business shows
good promises with an average occupancy rate of 90%. The hospitality business
under SHR management aims to increase the occupancy rate to achieve an all-time
high of 75%, with expected revenue surpassing THB 10 billion in 2023.
Meanwhile, the industrial estate and infrastructure business is ready to take a
giant leap forward with double the number of the ownership transfers.
Mrs. Thitima Rungkwansiriroj, Chief Executive Officer of Singha
Estate PLC, or “S”, reveals that in 2022, the company generated a revenue of
THB 12.5 billion, an increase of approximately 62% from the previous year.
Several factors contributed to this growth, including the success of the
SIRANINN RESIDENCES project, which achieved a high booking rate and transferred
ownership of more than 70% and 30%, respectively. It is a glorious milestone to
reach only a year after restructuring its business and officially entering the
horizontal-housing development market. The hospitality business managed by SHR
exceeded its revenue target, reaching THB 8,700 million, making it Thailand’s
No.2 highest revenue-generating hotel operator. Utilizing powerful strategies
combined with a boost from the reopening of the tourism industry, the average
daily rate (ADR) experienced an increase of over 28% from the previous year.
The office building business also showed significant signs of recovery, with
higher occupancy Moreover, the industrial estate and infrastructure business
had revenue from ownership transfer over 77 rai (approx. 123,200 sqm.) in the
previous year.
“2023 is a
significant year for Singha Estate, with our “S EXCELS” strategy aiming for
excellence in all dimensions. The first dimension is excellent business
performance, pushing the profit target to an all-time high in all business
portfolios. This year, the company will be able to increase its total revenue
by up to 34% or an approximate value of THB 16.7 billion. The second dimension
is to increase business leverage, strengthen competitiveness, focus on creating
synergy between the four businesses, and partner with global partners to
achieve an average annual growth rate of 20% over the next three years. The
third dimension is sustainable development. The company aims to achieve carbon
neutrality in 2030 and plans to conserve the biodiversity of the area where the
businesses locate,” Mrs. Thitima said.
Excellent
Performances
For the Residential Property Business, in 2023, Singha Estate is preparing to
continue its success from 2022 by launching quality horizontal-housing projects
that meet modern lifestyles in high-potential locations, expanding its market
penetration to various segments with five more projects consisting of a single
detached house priced at THB 15 - 30 million, with another project starting at
THB 30 - 50 million, the Cluster Home project starting THB 100 million, and the
Flagship Cluster Home Project which starting at THB 550 million right after
which concludes a total value of over THB 10 billion. At the same time, to
respond to the resurgence of demand in the condominium market, especially in
the Ready-to-move-in segment, Singha Estate has expanded its ownership share of
The ESSE Sukhumvit 36 project, resulting in the ability to recognize the
revenue and profits from that project fully. As a result, the company expects
that its residential projects will see revenue growth of more
than 70% this year.
The Commercial
Business
unit has shown a sign of consistent recovery with the "Right-sizing"
business model strategy that offers various-sized spaces for leasing, coupled
with ready-to-move space allocation. By 2023, Singha Estate targets to increase
the business performance by 20%, with a rental rate of over 90% in all
projects, including the Singha Complex, the SUNTOWERS, and the S-METRO, as well
as the latest office building project, S-OASIS, on Vibhavadi Rangsit Road, at
the Lardprao intersection, a location bustling with potentials, and with
significant tenants already signing leasing contracts in the second quarter of
this year.
The Hospitality
Business unit
under S Hotels and Resorts (SHR) management is one of the very outstanding
businesses this year. The four hotels within Thailand will be the key drivers,
with expected revenue growth of up to 60% from the previous year. Meanwhile,
revenue from hotels in the Maldives is expected to grow by 30% and will
significantly contribute to total revenue exceeding THB 10 billion or growing
by more than 20%. In 2023, the focus will be increasing the occupancy rate to
an all-time high of 75%. Asset Rotation & Enhancement and uplifting of the
hotels under SHR will strengthen the business performance and support SHR to
continue as Thailand’s second-highest revenue-generating hotel management
business. Additionally, the company will introduce the SO/ Maldives, a luxury lifestyle
6-star hotel operating under SHR and its business partner in the CROSSROADS
Maldives project by the end of the year. The project is expected to become
another long-term profit earner for the company.
The Industrial Estate and Infrastructure
Business unit is expected to grow
within 2023, doubling S-Angthong’s ownership transfer with significant support
from both macroeconomic factors, according to data from the Board of Investment
(BOI), which predicts that Thailand will be able to maintain foreign investment
levels of no less than THB 500 to 600 billion. Moreover, the cooperation with
the Industrial Estate Authority of Thailand (IEAT) combined with its industrial
strength, S-Angthong meets the needs of various businesses, especially those
that need high-volume electricity and fresh water and those that require low
carbon energy for manufacturing to penetrate the international market. In
addition, the industrial plant is located in a strategic location between raw
material resources and transportation routes, as well as a large volume of
fresh water and three power plants under cooperation with B.Grimm Power Public
Company Limited (BGRIM), which can generate up to 400 megawatts within the end
of this year. Lastly, the commercial operation of two power plants will be
another factor driving long-term profitable growth.
With its action plan and strategy to
create an all-time high in every business, the company is confident that, in
2023, Sing Estate's total revenue will be able to grow as targeted at 34% or over
THB 16.7 billion, affecting profitability and return on investment positively.
Strengthening
partnerships for business leverage
The company plans to partner
with both internal and external partners of Singha Estate to gain more business
leverage, elevate competitiveness and offer Product Differentiation. For
example, the residential property business aims to enter the Branded Residence
market by collaborating with SHR. The collaboration between hospitality and
infrastructure businesses is also an initiative from speed-to-market strategy,
the project consists of installing solar panels on the roofs of hotels in the
SHR group in Thailand and the Maldives, covering more than 10,000 square
meters, which can generate approximately 3 million kilowatt-hours per year. Apart
from contributing to the infrastructure business, this project can also help the
hotel business manage energy costs more efficiently. Moreover, the company also
plans to extend the use of clean energy to other high potentials projects in
the future.
In addition, to create leverage in
penetrating the Flex space business, the company plans to collaborate with world-renowned
operator with branches covering essential business centres and efficient modern
management systems. The company will first start developing the Flex Space
project in its office building. At the same time, the speed-to-market growth
strategy of the hospitality business unit will be the Asset Light Model, which will
lead to efficient investment and has strength in its flexibility in high-level
management. The uniqueness that allows SHR to distinguish itself from other
hotel chains is that it can manage other hotels not exclusively under the SAii
brand, a homegrown brand, through Hotel Management Agreements but under other
hotel brands (Third Party Operators) as well.
The collaboration between businesses
within the Singha Estate group with the leading partners will be an important
driving force in creating leverage for all business units, enhancing
competitiveness, and increasing the speed of responses. This strategy will
enable Singha Estate to achieve an average annual growth rate of 20% over the
next three years.
Sustainable growth delivers
lasting values.
Singha Estate
aims to become a carbon-neutral organization by 2030 and create a balanced
diversity to align with sustainable business growth. The company has set a
target to reduce carbon emissions by 5% annually and to integrate clean energy
technology into its business operations. Additionally, Singha Estate promotes
the preservation of critical areas with high bio-diversities, such as the SAii
Phi Phi Island Village in the national park area and the CROSSROADS Maldives
project.
“Singha Estate will continue to drive all
business units forward under the Sustainable Diversity vision of sustainable
growth. We will not stop seeking opportunities to expand investment models into
developing further and professionally managing our real estate businesses, such
as our residential property business unit, commercial property business unit,
hospitality business unit, and industrial estate and infrastructure business
unit. In addition, we aim to develop superior products and services to deliver
valuable customer experiences and also commit to operate under corporate
governance to create a quality society to all stakeholders and promote
sustainable growth” Mrs. Thitima concluded.
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