SHR Opportunity Day Q1/2020 1 June 2020 S Hotels & Resorts - - PowerPoint PPT Presentation
SHR Opportunity Day Q1/2020 1 June 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 SHR Company Overview
Q1/2020
1 June 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 ▪ SHR Company Overview ▪ Business Update ▪ Strategic Recovery Path for COVID-19 ▪ Q1/2020 Portfolio Performance ▪ Q1/2020 Financial Performance
Proven track record to grow footprint
Upscale 4% Luxury 2% Upper upscale 27% Upper midscale 67% Target customers 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.
Core assets(2)
Positioning 2014 2019
Overall portfolio(1) 2014 2015 2016 - 2017 2018 2019
Number of keys
227 2,889 274 878 4,647
◼ Singha Estate
acquired Santiburi Koh Samui Apr 2014
◼ Acquired Phi Phi
Island Village Beach Resort Nov 2014
◼ Acquired 2 Holiday Inn
hotels and 1 Mercure hotel through second JV with FICO UK Sep 2016
◼ Commenced land
reclamation, shoreline protection, landscaping and construction of Project Crossroads Phase One (via Singha Estate) Jan 2017
◼ SHR acquired Project
Crossroads Phase One from Singha Estate Mar 2018
◼ Santiburi Koh Samui
constructed 19 new grand reserve pool villas (new room category)
◼ Acquired 6 Outrigger hotels
May/Jun 2018
◼ Commencement of
hotels in Maldives Sep 2019
Geographical coverage
◼ SHR trading on SET
Nov 2019
376 3
◼ 6 grand deluxe pool villas
added to Santiburi Koh Samui Apr 2015
◼ Entered into equal JV
with FICO UK to acquire UK portfolio
Oct 2015
◼ Disposal of 50% share
investing in Island 3 Crossroads project Feb 2020
2020
Asia-Pacific 50.3% Europe 38.0% Americas 8.5% Africa 2.8% Others 0.4% 2019
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SHR’s global hospitality portfolio
Total # of Resorts / Hotels
Total #
Countries
Brands
Outrigger Hotels UK Hotels Total # of keys Total # of Hotels
Hard Rock Hotel Maldives
178
2,964 Outrigger Laguna Phuket Beach Resort Outrigger Koh Samui Beach Resort
255 52
Phi Phi Island Village Beach Resort
201 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 Konotta Maldives Resort
53
SAii Lagoon Maldives, Curio Collection by Hilton
198 Self-Managed Hotels(1)
Outrigger Fiji Beach Resort
253
Castaway Island, Fiji
65
Outrigger Mauritius Beach Resort
181 151
Santiburi Koh Samui
96
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Our hospitality management platform : “Affordable luxury lifestyle resort”
6 properties | 859 keys 2 properties | 297 keys 2 properties | 376 keys (To be launched in 2020-2021)
Self-Managed 3rd Party Hotel Management Agreement Self-Managed with Franchise Agreement Hotel Management Platform
SHR is able to tap on both in-house, home-grown management platforms as well as access to strong brands via collaboration with reputable international operators.
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The Marina @ Crossroads SAii Lagoon Maldives, Curio Collection by Hilton Hard Rock Hotel Maldives Crossroads Phase Two
Destination highlights Hard Rock Hotel Maldives SAii Lagoon Maldives, Curio Collection by Hilton
▪ First integrated leisure and entertainment island in the Maldives that offers wide variety of leisure components to visitors with global brands HRC and CDM ▪ First hotel under SHR’s new “SAii” brand used alongside the established Hilton brand name ▪ 198 upper upscale rooms (44 sqm to 240 sqm per room) ▪ First upper upscale hotel in the Maldives under the Hard Rock Brand ▪ 178 rooms (46 sqm to 445 sqm per room)
The Marina @ Crossroads
Crossroads Phase One Island III
▪ 1st integrated lifestyle destination in the Maldives ▪ Superb location : within 15 minutes by speed ferry from the Malé Velena International Airport ▪ The project comprises: ▪ SAii Lagoon Maldives, Curio Collection by Hilton ▪ Hard Rock Hotel Maldives ▪ The Marina @ Crossroads ▪ High-end lifestyle resort under development on Island III ▪ 50-year lease expiring in February 2066, with option to extend for 49 years ▪ Right of purchase and right of first refusal to acquire Project Crossroads Phase Two from Boon Rawd Brewery Group (BRBG)
Crossroads : World-class integrated development and the first of its kind in the region
Q1/2020 Key performance driver: Crossroads project
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Update on Crossroads project Island 3
Construction start 2020 Opening date 2022 Project cost USD 56m-60m No of keys 80 villas (120 sqm to 320 sqm per room) Positioning High-end lifestyle resort
USD 900 – 1,000 Contribution to SHR
management fee to JV
Project Overview Disposal of shares and record of gain
On 17 February 2020, SHR(SC) transfers 50% of share in PLM3 to WEWD
Wai Eco World Developer
S Hotels and Resorts (SC) Prime Locations Management 3 Ltd Dream Islands Development 3 Private Limited Dream Islands Development 2 Private Limited
USD 16.2 mil
50% 100% 100% Sublease Island 3 50%
50% of share in PLM3
4,000,000 ordinary shares Consideration received : USD 16.2 m Gain on share disposal in Q1/20 : USD 10.4 m 9
government officers who are in duty to handle COVID-19 pandemic.
Impact from COVID-19 pandemic
Country National COVID-19 Status COVID-19 Case (1) Thailand
Fiji
arrangement between AUS and NZ) (2)
Mauritius
Maldives
UK
(1) Source: https://www.worldometers.info/coronavirus/ as of 25 May 2020 (2)
COVID-19 current situation by country
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(1) McKinsey. (2020, May 14). Hitting the road again: How Chinese travelers are thinking about their first trip after COVID-19. (2) UNWTO. (2020, May 8). International Tourist Numbers Could Fall 60-80% in 2020. (3) Bangkokbiznews. (2020, May 19). TAT 'trusted' rebranding curates market. (4) Bangkokpost. (2020, May 25). NESDC plan to re-boost domestic tourism. (5) TAT. (2020, April 20). TAT introduces “Amazing Thailand Safety and Health Administration: SHA” certification
Chinese confidence in travel grows
McKinsey survey on Chinese travelers (1) ▪ 56% of Chinese travelers planning the trip between September and October (National Day holiday). ▪ 25% are looking at international destination. 22% are choosing destination ▪ Outdoor, nature-related, food and family-themed destinations will be more popular ▪ Economy travel will recover more quickly
Recovery sign for hospitality industry
TAT plans to boost domestic demand
▪ The outlook for domestic trips was projected at 100 million, with total revenue of 1.23 trillion baht. (3) ▪ Re-boosting domestic tourism by offering 40-50% discount on hotel room rates. (4) ▪ International demand is expected to recover in October 2020. (3)
is introduced to increase confidence among international and domestic tourists (5)
“Domestic” and “Leisure” are expected to recover faster
World Tourism Organization (UNWTO) Panel of Experts survey (2)
international demand. The majority expects to see signs of recovery by the final quarter of 2020 but mostly in 2021.
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SHR strategic recovery path for COVID-19
Cash management
partners
workforce
Commercial
Trust, Safety & Hygiene
departure
Cash management
Continue Unlocking model with international customer trends & demands Strategic growth plan
focus Asset enhancement plan
digitalization touchless technology Cash management
strategic growth plan
Q2/2020 | Lockdown Q3/2020 | Unlocking model Q4/2020 onward | New Normal
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SHR portfolio is following the trend
(1) In-line with / according to McKinsey survey (2) According to UNWTO
SHR key strengths are retained post COVID-19
Diversified & dream destination
destination
Resort style hotel
▪ Physical distancing, low density ▪ Open-air and natural ventilation
destinations will be more popular (1)
Upper-upscale positioning
after COVID-19
standards
Leisure segment
business or MICE market (2)
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Enhance Global Healthy and Safety Standards
global partners
departure
SHR Next Normal The Art of Balancing between “New Normal” and “Guest Satisfaction”
(HOM)” to optimise workforce level based on occupancy and cost-base as well as cross functional cooperation
Hotel Operational Efficiency Branding and Marketing Strategy
community programs
flexibility
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#GoingPlaesTogether
Q1/2020 Revenue from services breakdown
Thailand 40% Maldives 39% Fiji 12% Mauritius 9%
Revenue by management platform Revenue by hotel location
3rd-Party HMA 46% Self-Managed with Franchise 31% Self-Managed 23%
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Self-Managed Hotels Outrigger Hotels UK Hotels Crossroads Hotels (1)
Impact of COVID-19 pandemic Hotel performance across portfolio dropped due to COVID-19 pandemic, specifically in March 2020
Portfolio performance by management platform
USD/THB = 31.29 FJD/THB = 14.14 MUR/THB = 0.84 GBP/THB = 40.06 USD/THB = 31.29
10,174 8,285 9,760 6,336 ADR RevPAR Q1/19 Q1/20 81% 65% Occupancy 7,288 5,272 7,071 4,192 ADR RevPAR Q1/19 Q1/20 72% 59% Occupancy 10,893 6,606 ADR RevPAR Q1/19 Q1/20 61% Occupancy 2,462 1,405 2,343 1,167 ADR RevPAR Q1/19 Q1/20 57% 50% Occupancy
(1) officially opened on 1 September 2019.Unit: THB
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37 (163)
Q1/19 Q1/20
(MB)
YoY 542.9%
974 1,145
Q1/19 Q1/20
(MB)
569 599
Q1/19 Q1/20
(MB)
Adjusted net profit (loss) (2) Revenue from services
Summary of SHR consolidated financial performance
(2) Adjusted net profit (loss) is calculated from Net profit (loss) of the period, 235 mb, and deduct unrealized loss from exchange rates and non-recurring items
Adjusted EBITDA and margins (1)
312 140
Q1/19 Q1/20
(MB)
YoY 55.2%
32.0% 12.2%
(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
Adjusted gross profitand margins
YoY 17.6% YoY 5.1%
58.5% 52.3%
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Net reported profit
235
(MB)
Adoption of new financial reporting standards
The group has adopted following financial report standards retrospectively from 1 January 2020
▪ Financial Instruments (TAS 32, TFRS 7 and TFRS 9)
▪ Fair value change of short-term investment is recognised in P/L instead
▪ Derivative is recognized in BS (previously off-book item). Fair value change is recognised in OCI under cash flow hedge method.
▪ Leases (TFRS 16)
▪ Right of use assets and lease liabilities are recognized in BS (previously some are off-book item). ▪ Amortisation and interest expenses are recognised in P/L instead of rental expenses.
Consolidated P&L Statement For 3-month period ended 31 March 2020 TFRS 9 Impact (1) TFRS 16 Impact (1) Total Impact (1)
Rental expense 23.4 23.4 Investment MTM loss (1.8) (1.8) EBITDA (1.8) 23.4 21.6 Amortisation expense (9.6) (9.6) Interest expense (16.7) (16.7) Net profit (1.8) (2.9) (4.7)
(1) The impact is based on comparison with previous standard application.Unit: MB Unit: MB
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Robust capital structure
Positive liquidity status & Available debt room to support future growth
(1) including project loan
Available debt room to support future growth
7,848 8,078 8,078 10,000 – 20,000
YE19 Q1/20 Q1/20 Debt capacity based
(MB)
Debt capacity
0.44x IBD/E ratio Remaining interest-bearing debt
1x-1.5x 0.42x
▪ With target capital structure 1-1.5 times, the Company has debt room to support acquisition growth of 10,000-20,000 MB
Liquidity status as at 31 March 2020
Cash balance 3,543 million Baht Available credit facility (1) 1,385 million Baht
IBD/E = 0.42x
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The information contained in this material has been prepared by S Hotels and Resorts Public Company Limited (“SHR” or “S Hotels and Resorts”) solely for information purpose and does not constitute an offer or invitation to sell or the solicitation of an offer or invitation to purchase or subscribe for shares in S Hotels and Resorts . Some statements made in this material are forward‐looking statements. These statements typically contain words such as "expects" and "anticipates" and words of similar
include statements with respect to our corporate plans, strategies, and beliefs. The statements are based on our management’s assumptions and beliefs in light of the information currently available to us. These assumptions involve risks and uncertainties which may cause the actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by such forward‐looking statements. None of the future projections, expectations, estimates or prospects in this presentation should be taken as forecasts or promises nor should they be taken as implying any indication, assurance or guarantee that the assumptions on which such future projections, expectations, estimates or prospects have been prepared are correct or exhaustive or, in the case of the assumptions, fully stated in the presentation. We assume no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements. Accordingly, no representation or warranty, express or implied, is made or given by or on behalf of S Hotels and Resorts or any of its shareholders, directors, officers or employees or any of the Banks (and their shareholders, directors, officers or employees) or any other person as to the accuracy, completeness or fairness of the information
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