1
SHR Opportunity Day
For the year ended 2019 17th March 2020
SHR Opportunity Day For the year ended 2019 17 th March 2020 1 - - PowerPoint PPT Presentation
SHR Opportunity Day For the year ended 2019 17 th March 2020 1 DISCLAIMER 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
1
For the year ended 2019 17th March 2020
2
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
and local practices and standards may vary, so viewers and others utilizing information contained within a presentation are free to adopt differing standards and approaches as they see fit. Products and names mentioned in materials or presentations are the property of their respective owners and the mention of them does not constitute an endorsement by S Hotels and Resorts . The information contained in this presentation is only current as of the date its date. In giving this presentation, neither S Hotels and Resorts nor its respective advisers and/or agents undertake any obligation to provide the recipient with access to any additional information or to update this presentation or any additional information or to correct any inaccuracies in any such information which may become apparent. You must make your own assessment of the relevance, accuracy and adequacy of the information contained in this presentation and must make such independent investigation as you may consider necessary or appropriate for such purpose. The presentation should not be construed as legal, tax, investment or other advice.
3
Welcome to the world of S Hotels & Resorts
The premier hotel investment and resort management company, creating unique travel experiences for our guests and value for our stakeholders
Agenda
4
5
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
Proven track record to grow footprint
Sell 50%share
investing in Island 3 Crossroads project Jan 2020
2020
Asia-Pacific 50.3% Europe 38.0% Americas 8.5% Africa 2.8% Others 0.4%
6
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
7
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.
64% 10% 26%
2019 Revenue
3rd Party HMA Self-Managed with Franchise Self-Managed
8
9
The Marina @ Crossroads SAii Lagoon Maldives, Curio SAii Lagoon Maldives, Curio Collection by Hilton Maldives Hard Rock Hotel Maldives Crossroads Phase Crossroads Phase Two
Destination highlights Hard Rock Hotel Maldives Hard Rock Hotel Maldives SAii Lagoon Maldives, Curio Collection by Hilton
entertainment island in the Maldives that offers wide variety of leisure components to visitors
alongside the established Hilton brand name
per room)
Maldives under the Hard Rock Brand
The Marina @ Crossroads
CROSSROADS Project
Crossroads : World-class integrated development and the first of its kind in the region
Crossroads Phase One Island III
Airport
Boon Rawd Brewery Group (BRBG)
10
Hotels at Crossroads project
11
Dine Spa Shop
Shops at The Marina @ Crossroads
12
21% 22% 33% 57% 86% 85% 37% 34% 31% 48% 65% 60% Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 SAii HRH
Crossroads project update
SAii and HRH occupancy rate rising since December 2019
hotel opened and wholesale channel starts utilizing the booking.
Shops at The Marina @ Crossroads is on the right track
daily visitors from hotel guests, Male and other hotel visitors and visitors from cruise.
4 5 8 8 9 9 16 18 20 22 22 25 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20
Occupied no. of shop/kiosk
Kiosk (Total 13 units) Shop (Total 32 units))
13
Hot topic : Impact from COVID-19
Booking Cancellation
Thailand 50% Maldives 46% Fiji 1% Mauritius 3%
Cancellation impact by property location
cancellation of booking mainly came from China, Russia and Asia.
approximately 50-100 MB which 46% of impact affect to Maldives properties mainly from Outrigger Konotta Maldives, and 50% to Thai properties.
and March reservation.
proposed postpone booking policy for client.
situation is ease, short-term for Asia (OTA booking), medium-term for European (Wholesale).
January 4% February 69% March 20% Other 7%
Cancellation impact by month
Pacific market. The company intends to balance client base and be less reliance on any single nationality.
decreasing from 12% in 2016 to 6% in 2019.
Lower concentration on Chinese tourist
12% 10% 7% 6%
Y2016 Y2017 Y2018 Y2019
% Chinese tourist to portfolio
4% 13% 2% 4% 6% 5% 7% 7% 6% 6% 3% 3%
0% 2% 4% 6% 8% 10% 12% 14% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
% Chinese tourist by month in 2019
Opportunity to capture Chinese tourism when booking bounces back By nature, Chinese has tourist season heavily in Q1 and Q3
14
Rebalance capital structure – Expansion on track
Supported by primary proceeds from IPO and debt headroom available Increased debt capacity based on target debt to equity ratio Enlarged equity base from primary proceeds from IPO
10,856 17,922 5,358 1,994 9M2019 Primary proceeds from IPO YE2019 (MB) Bridging loan IPO primary proceeds net of repayment 7,542 7,847 7,847 5,358 10,000 – 20,000
9M2019 YE2019 Debt capacity based
equity
(MB) repaid on 8 Nov 2019 Debt capacity
1.2x D/E ratio Remaining long term debt
Total equity 1x-1.5x 0.4x
Outrigger hotels in 2018 has been repaid since 8 Nov 2019 (financing cost of YE2019 of this loan is 172 MB)
to support acquisition growth of 10,000-20,000 MB
15
Summary of Crossroads project Island 3
Structure and Transaction detail
Construction start 2020 Opening date 2022 Project cost US$ 56m-60m No of keys 80 villas (120 sqm to 320 sqm per room) Positioning High-end lifestyle resort
US$900 – US$1,000 Contribution to SHR
management fee to JV
Project Overview
WEWD.
50 years at the cost of USD 8.0 mil.
time gain from share sale transaction with net proceed after transaction cost in Q1/2020 .
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
16
17
Portfolio Operation Performance
Self-Managed Hotels Outrigger Hotels UK Hotels
8,415 7,777 8,054 7,350 6,401 5,591 5,757 5,117 76% 72% 72% 70%
50% 60% 70% 80%
FY18 FY19 Q4/18 Q4/19 ADR RevPAR Occupancy 6,303 5,987 6,698 6,222 4,947 4,691 5,469 5,112 79% 78% 82% 82%
50% 60% 70% 80%
FY18 FY19 Q4/18 Q4/19 ADR RevPAR Occupancy 2,752 2,665 2,678 2,572 1,968 1,851 1,846 1,777 72% 70% 69% 69%
– 10% 20% 30% 40% 50% 60% 70% 80% 90%
FY18 FY19 Q4/18 Q4/19 ADR RevPAR Occupancy
Crossroads Hotels
12,572 13,162 4,262 4,694 34% 36%
20% 30% 40%
FY18 FY19 Q4/18 Q4/19 ADR RevPAR Occupancy
Self – Managed Hotels Performance dropped resulting from THB appreciation, slowdown of international tourist arrivals to Thailand, and competition
Outrigger Hotels Overall performance perform on par vs last year but slightly dropped in some properties, i.e. Outrigger Samui and Castaway Fiji. Crossroads Hotels Crossroads project officially opened on 1st September 2019. UK Hotels [Equity method] UK hotel performance continued the softening trend mainly resulted from slowdown in UK economy and tail-end Brexit.
18
Adjusted Net profit (loss) and margins Revenue from services
Overview of SHR consolidated financials
83 (89) 311 (98) Q4/18 Q4/19 2018 2019
(MB) 8.4% (7.6%) 12.1% (2.6%)
(2) Adjusted Profit (loss) is calculated from Profit (loss) of the year and deduct unrealized loss from exchange rates and non-recurring items 985 1,178 2,576 3,818 Q4/18 Q4/19 Y2018 Y2019
(MB)
Adjusted EBITDA and margins
281 350 997 1133 Q4/18 Q4/19 Y2018 Y2019
(MB) 28.6% 29.7% 38.7% 29.7%
(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
(1) (2)
Adjusted Gross profit and margins
58.4% 50.7% 57.7% 52.1%
(5)
575 598 1486 1,988 Q4/18 Q4/19 Y2018 Y2019
(MB)
19
20
Asset Enhancement Plan: Outrigger Phuket
New multipurpose hall and new guestrooms building
The new flexible meeting and exhibition space including a pillar-less ballroom with six-metre-high ceilings with movable partition walls. Target : Asia Pacific, local business gatherings in Phuket and major weddings : Capacity 350 person : Expect 20-30 event per year (600k THB/event) CAPEX 247 MB Multipurpose Hall Guestrooms Building : 1,900 sq.m. (700 sq.m. over) expected complete in Q1/20 : 24 family style rooms expect to be added Multipurpose Hall Guestroom Bldg.
Project Information Multipurpose Hall work progress (as of 29 Feb 2020)
21
ir@shotelsresorts.com 02-058-9888
22
Appendix : Crossroads project
SHR Boon Rawd Brewery Island 1b – SAii Lagoon Maldives, Curio Collection by Hilton Site Area : 4.4 Ha Keys : 198 Island 2 - Hard Rock Hotel Maldives Site Area : 6 Ha Keys : 178 Island 1a – The Marina Site Area : 17 Ha Facilities : restaurant, Café de Mar, Hard Rock Café, cultural center, multipurpose hall, marina center Island 3 - High-end lifestyle resort Keys : 80