December 2, 2020
S Hotels & Resorts The premier hotel investment and resort management company, creating unique travel experiences for our guests and value for our stakeholders
Agenda
Business Direction
4
227
+274 +2,889
Asia-Pacific 50.3%
Europe 38.0%
America 8.5%
Africa 2.8%
Others 0.4%
Notes: (1) Overall portfolio includes all assets including UK assets. Breakdown by keys. (2) Core portfolio excludes UK assets, which are held through a 50% stake in our equal joint venture with FICO UK. Breakdown by customer nights. (3) Haven’t include Crossroads island 3 yet
Major customersGeographical coverage
13% 9% 7% 4% 67%
2014
Apr 2014
Nov 2014
Acquired 2 Holiday Inn hotels and 1 Mercure hotel through second JV with FICO UK
Sep 2016
Jan 2017
Mar 2018
Santiburi Koh Samui constructed 19 new grand reserve pool villas (new room category)
Acquired 6 Outrigger hotels
Sep 2019
6 grand deluxe pool villas added to Santiburi Koh Samui
Apr 2015
Entered into equal JV with FICO UK to acquire UK portfolio of 26 hotels
Oct 2015
Disposal of 50% share investing in Island 3 Crossroads project
Feb 2020
39 Hotels
Contribution by Number of keys
SHR’S GLOBAL HOSPITALITY PORTFOLIO
Note: Core portfolio excludes Holiday Inn and Mercure hotels in the UK which are held through a 50% stake in our equal joint venture with FICO UK. (1) Includes Self-Managed Hotels under franchise agreement(s).
Outrigger Hotels UK Hotels
Self-Managed Hotels(1)
2,964
255 52 Phi Phi Island Village Beach Resort 201
Outrigger Konotta Maldives Resort 53
SAii Lagoon Maldives, Curio Collection by Hilton
198
Outrigger Mauritius Beach Resort
TH
Portfolio outreach/ Number of countries 5
Hotel Brands 7
management platforms as well as access to strong
brands via collaboration with reputable
international operators.
6 properties | 859 keys
HOTEL MANAGEMENT AGREEMENT PLATFORM
brand with the vision to bring the world inclusivity
rather than separation”
Immersion travel culture
with local experience
Thai Primary and
Remunerate recurring management fee income
Develop the image of a particular hotel according to the standard of the Company’s own brand
Offer investment to revamp the image of the asset in various forms
7
KEY POINTS OF SHR’S HMA PLATFORM
The collectible fees comprise of Base Management Fee, Incentive Management Fee and Marketing Contribution Fee for all managed
properties.
procedure
Developing
Expertise
Apply dynamic pricing
in home market
To cluster operation of Outrigger with self-manage properties
would suggest the economy of scales and provide cost saving
Profitability optimization
TERMINATE HOTEL MANAGEMENT AGREEMENT WITH OUTRIGGER
& ENTER INTO SELF-MANAGED PLATFORM
Able to adjust the strategies and policies to enhance potential and adaptability
23%
44%
33%
Self-Managed
Outrigger
Crossroads
28%
30%
42%
9M2020 2021F
Gearing toward Self-Managed, Franchise and
Homegrown brand platform with solid base
performance from third party operator guarantee”
Current (2020) 5-year Destination (2025)
39 hotels 80 hotels
Healthy capital structure
Optimal capital structure
Access various sources of fund Minimise cost of funding ROE improvement
Positive liquidity status Financing flexibility Available debt room to support growth
9M2020 Room contribution
by management platform
2025 “
Q3/2020 HIGHLIGHTS
S t r a t e g i e s
As of 30 Sep 2020, 35 properties out of 39 total hotel portfolio or 90% of number of keys are operational
Apr May Jun Jul Aug Sep Oct
90%90%
75%
Outrigger Mauritius Beach Resort will resume its operation on Dec 1, 2020. While Konotta will be closed until Q3’2021
Resumption of Hotel OperationsSignif icant Development
(Rooms)
on EBITDA to approximately 30 – 40%.
Moving forward for rebalancing portfolio and
major customer to rapidly adapt to the changing
situation
On October 15, 2020, the Company announced the establishment of “S Hotels and Resorts Management Company Limited” with the objective to support the Hotel Management Agreement business
Aim to launch the hotel management by 2021
4,647
0
N u m b e r o f k e y s r e - o p e n e d d u r i n g Q 3 / 2 0 2 0
13
Koh Samui Beach Resort have been certified for ALSQ
Hotel Management Platform
to convert to self managed in order to enhance
profitability of existing portfolio
Maldives and UK reported the drop in ADR ~ 20%
Thailand faced with the intense price competition
especially Samui, recorded the contraction in ADR
around 60%. While Phuket declined only 17%
Fiji marked the worst performance due to the
heavily reliant on local business at the moment
PICK UP DEMAND IN MALDIVES
In Q3/2020, traffic mostly driven from UAE, followed by USA, UK, and Russia.
Foreseen the strong recovery demand towards the end of 2020 and the beginning of 2021, driven by the rebound in India and Europe tourists.
70% (Forecasted)
Oct
Nov
Dec
41% (Forecasted)
Create the unforgettable memories for celebrating the festive season with fun events full of good vibe to enjoy the new start!
The Marina is currently occupied by 63% of total capacity
Business on Books +Forecasted
United Kingdom
Mauritius Fiji
D i v e r s i f i e d p o r t f o l i o c a n c a p t u r e r e c o v e r y d e m a n d a l l o v e r t h e w o r l d
D o m e s t i c a n d I n t e r - r e g i o n m a r k e t s r e m a i n k e y d r i v e r i n 1 H / 2 0 2 1
A d a p t e d s t r a t e g i e s t o e n h a n c e o c c . r a t e i n w e e k d a y , a c c e n t u a t i n g c o r p o r a t e / g r o u p
a c t i v i t i e s a n d m o v i n g t o w a r d d i g i t a l d i s t r i b u t i o n c h a n n e l
Only local business is forecasted for Q4/2020 and Q1/2021
The government is pressing ahead with its quarantine-free travel with New Zealand and Australia, followed by Pacific Bubble
Focus on local market with some special deals especially weekend for the domestic travelling
Currently no update on border opening with no mandatory quarantine
Still face with the rise of COVID-19 case, led to imposing the second lockdown measures during Nov 5 to Dec 2, 2020
The Company is closely observing whether any partial suspension is required
Extend “We go travel together” until Jan 2021 Open the border for premium long stay (Special tourist visa: STV),
implemented from Oct 1, 2020 until Sep 30, 2021 BOT estimates the international arrival in 2021 to stand at 9.0 million
Maldives
Re-open for international tourists with hassle-free entry and no testing requirements or mandatory quarantine
Tourist arrivals is expected to stand at 0.5 and 1.1 million in 2020 and 2021, respectively
9M/2020 Operating & Financial Performance
Self-Managed Hotels Outrigger Hotels
UK HotelsCrossroads Hotels (1)
H o t e l p e r f o r m a n c e a c r o s s p o r t f o l i o m a t e r i a l l y a f f e c t e d b y t h e C O V I D - 1 9 , a s w e l l a s , t h e h o t e l s h a d t o s u s p e n d
o p e r a t i o n s f r o m A p r i l 1 , t o J u l y 1 4 , 2 0 2 0 .
PORTFOLIO PERFORMANCE BY MANAGEMENT PLATFORM
USD/THB = 31.52 FJD/THB = 14.39 MUR/THB = 0.81
GBP/THB = 40.05USD/THB = 31.52
Unit: %, THB
52% YoY
Unit: million baht
Gross profit and margins
9M/2019 9M/2020
90% YoY
Gross profit decreased by 90% YoY due to the decrease in operating revenue of Self- Managed Hotels and Outrigger Hotels, impacted by COVID-19 pandemic
18% YoY
• The operating cost (excluding depreciation and interest) was trimmed in 3Q2020 by 48% YoY and 9% QoQ. While 9M2020 shown a 18% decease in operating cost, compared to same period last year.
• Excluded Crossroads Project operating cost for 9M2020 was down by 36% YoY. • The increase of admin expenses in 9M2020 was mainly from the recognition of
expenses incurred during the suspension period as administrative expenses.
Unit: million baht, (%)
SUMMARY OF SHR CONSOLIDATED FINANCIAL PERFORMANCE
Adjusted EBITDA (1)
Remark: (1) Adjusted EBITDA is calculated from EBT plus Finance cost, Depreciation and Amortization, Interest income from Loan to JVs and deduct Interest income, unrealized loss from exchange rates and non-recurring items (2) Adjusted net profit (loss) is calculated from Net profit (loss) of the period deduct unrealized loss from exchange rates and non-recurring items
20
= (1,175.2)
24% QoQ
YoY: Decreased due to an absence of revenue during the suspension period together with a decrease in Share of profit (loss) from an associate and joint ventures. QoQ: Improved 69% on the back of a reinstatement of hotels operation, a rebound in share of gain form JV, along with a 9% drop in operating cost
YoY: Decreased due to a higher depreciation on ROU assets along with the opening of Crossroad Project in Sep 2019. QoQ: There was FX loss at 3 MTHB in Q3/20, decrease from 24 MTHB in Q2/20
35%
8%
57%
Liquidity status as at 30 September 2020
Cash balance 2,408.9 MTHB
Available credit facility (1)
THB, 46%
USD, 42%
Total Asset
Available debt room to support future growth
8,130
0.47x
1.50x
-0.50x
0.50x
1.50x
2.50x
3.50x
-4,300
15,700
35,700
Thank you
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