SHR Opportunity Day Q1/2021 - June 1, 2021 - Investor Relations
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SHR Opportunity Day Q1/2021 June 1, 2021
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 Direction ▪ Strategic Recovery Path for COVID-19 ▪ Q1/2021 Operating & Financial Performance
SHR Company Overview
Apr 2014: Acquired Santiburi Koh Samui (via Singha Estate)
PROVEN TRACK RECORD 2014 Nov 2014: Acquired Phi Phi Island Village Beach Resort
TO GROW FOOTPRINT
CAGR = 54%
Oct 2015: Entered into JV partnership with FICO UK to acquire 26 hotels in the UK
+376 -73 2015
+878 Sep 2016: Acquired 3 more hotels under 2 Holiday Inn hotels and 1 Mercure with FICO UK
+274 4,647 4,574 2016
+2,889 +3 4,271
3,116 3,390 3,393 Jan 2017: Commencement of land reclamation, shoreline protection, landscaping and
2017 construction of Project Crossroads Phase One (via Singha Estate)
227
2014 2015 2016 2017 2018 2019 2021 Mar 2018: Acquired Project Crossroads Phase One from Singha Estate
2018 Jun 2018: Acquired 6 Outrigger hotels
Mauritius
4%
Fiji 7%
Sep 2019: Commencement of operations for two hotels in Maldives
Contribution by
Number of keys
Maldives 2019 Nov 2019: SHR trading on SET
9%
Feb 2020: Disposed 50% share investing in Island 3 Crossroads project
United
Thailand
Kingdom 2020 Oct 2020: Establishment of “S Hotels and Resorts Management
38 13%
67%
Hotels Company Limited” to support the HMA business.
Feb 2021: Headed for conversion of 3 Outrigger hotels to Self-
2021 managed platform, along with Purchased the remaining 50% stake
50% 38% 9% of 26 hotels in the UK from FICO UK
Asia-Pacific Europe America
Major customers Apr 2021: Entered into a sale agreement for the 73-key Mercure
Diversified portfolio can capture demand all over the world Newbury Elcot Park, as part of its Portfolio Enhancement Strategy
4
SH R’ S GLOB A L H OSP IT ALITY P ORT F OLIO
SAii Laguna Phuket
255 nābor Koh Samui Bophut
52
SAii Phi Phi Island Village 201
Portfolio outreach/
Number of countries 5
2,891
UK
3,042
Hotel Brands
8
28 Hotels
151 Santiburi Koh Samui 96 Total Number of
Resorts/Hotels 38
SAii Lagoon Maldives,
198
TH
Total Number
of Keys 4,574
Curio Collection by Hilton
604 Outrigger Fiji
253 Castaway Island, Fiji 65
Beach Resort
4 Hotels
Contribution by Positioning
Maldives Fiji
178 Upscale 4%
Hard Rock Hotel Maldives
429 318 Luxury 2%
Mauritius 3 Hotels 2 Hotels
181 Upper
Upper
1 Hotel upscale
midscale
Outrigger Mauritius 181 27%
Beach Resort 67%
Outrigger Konotta
Maldives Resort 53
Outrigger Hotels Self-Managed Hotels(1) UK Hotels
Total # of keys Total # of Hotels
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).
5
OUR HOTEL MANAGEMENT PLATFORM
Self-Managed Third Party Hotel Self-Managed
Management Agreement with Franchise Agreement
5 property | 657 keys 31 properties | 3,541 keys 2 properties | 376 keys
EBITDA EBITDA EBITDA
Hotel name Hotel name Hotel name
Margin* Margin* Margin*
Santiburi Koh Samui 28 hotels in UK Portfolio 20 - 25%
35 – 40%
Hard Rock Hotel
SAii Phi Phi Island Village Outrigger Fiji Beach
Maldives
Resort
SAii Laguna Phuket
30 – 35%
Profitability Castaway Island 25 - 30%
Nabor Koh Samui Bophut optimization
Outrigger Mauritius SAii Lagoon Maldives
Konotta Maldives Resort Beach Resort
*Remark: EBITDA margin recorded in normal situation
6
Business Direction
EXECUTIVE SUMMARY
Medium to long term strategy has been adjusted to increase efficiency on portfolio
management
Divestment of tail assets in UK has been in progress as
planned. The transactions are expected to be completed
in 2021 - 2022
Realignment of portfolio management, uplifting the
selected top-tier hotels could contribute EBITDA
enhancement
Leveraging further growth by managing homegrown
brands. We target to become a professional leader in
the management of sustainable lifestyle resorts
Seeking investment in affordable areas in key tourist
destinations are continued in the long term, highly
focusing on seasonal balancing
8
UK Hotels’ Portfolio Management Provides consistently solid performance, Enhancement Portfolio
achieved occ. over 80% for 2018 and 2019 ▪ Evaluate to put capex to renovate
the hotels identified as core assets
▪ Boost the hotels’ profitability with
1. Divest a selection of underperforming hotels in ▪
proper enhancement program
In-depth cost structure
the United Kingdom, as part of its strategy to management
0% 100%
optimise the portfolio
Optimization Portfolio
2. Target optimal number of hotels in this portfolio Provides Neutral Performance
▪ 60% of the portfolio is fallen into
this category
should be around 20 - 21 hotels ▪ Keep monitoring performance
and overall cost structure
3. Reinvest sale funds in the renovation of its ▪ Seek further opportunity to shift
to core assets
0% 100%
top-tier hotels in the country ▪ Lease conversion if EBITDA
improvement
4. Seek further opportunities to enhance efficiency Limitation on EBITDA improvement, Divestment Portfolio
but expect gain from asset disposal at
of portfolio market price ▪ Look for disposal opportunities
5. Expect to uplift the EBITDA performance of this ▪
if offering price is justified
4 - 6 hotels are fallen under
these criteria
portfolio back to the peak level of GBP 18 million ▪ Evaluate minimize loss option
0% 100%
9
Balancing Growth
with Financial Strength
2021 2025
38 hotels 80 hotels
Healthy Optimal
capital structure capital structure
✓ Positive liquidity status ✓ Access various sources of fund
✓ Financing flexibility ✓ Minimise cost of funding
✓ Available debt room to support growth ✓ ROE improvement
UK Portfilio
3rd Party HMA Hotels 3rd Party HMA
16% 21% 14%
UK Portfilio
Hotels
Hotels Targeted
74%
contribution portfolio by Self-Managed
by management and Franchise
Self-Managed
platform in
platform 25%
2025
“ Gearing toward Self-Managed, Franchise and and Franchise
10%
Homegrown brand platform with solid base
performance from third party operator guarantee” Homegrown HMA
40%
10Strategic Recovery Path for COVID-19
SG& A wa s tr i m m ed b y 3 9% Yo Y i n Q 1 / 2 02 1,
d es pi te 4 3 % i n c r ea s e i n to ta l r o o m n i g h ts
Continued cost
reduction initiative
• Minimise utilities cost,
considering temporary closures
or weekend trading and
weekdays closure operation As of March 31, 2021, 32 properties out of 39 total hotel properties in the portfolio
• Implement workforce has reopened its doors, equivalent to 88% of number of keys in total
realignment to better match Countries Temporality suspension period:
demand in low digit occupancy
Thailand Santiburi Koh Samui closed during 1 Feb – 31 Mar 2021
properties Nabor Koh Samui Bophut closed during 1 Feb – 30 Jun 2021
• Reduce cash burn from 80 Maldives Outrigger Konotta Maldives Resort remained closed since Mar 2020
MTHB during Q3/2020 to United Kingdom 3 hotels remained close as of 31 Mar 2021
40 MTHB per month in Q1/2021
Fiji -
Mauritius Outrigger Mauritius closed during 1 Mar – 30 Jun 2021
12ST RON G P ICK UP D E M A N D IN M A LD IVES , T H A NK S T O Q UA RA NTINE F RE E
Maldives United Kingdom
Q1/2021 Performance at a Glance International demand Domestic demand only
▪ CROSSROADS performance continued to
improve quarter by quarter
▪ UK portfolio has been impacted from the
new wave of COVID-19 since Nov 2020
▪ Considered to suspend operations on low
digit occupancy properties during Q1/2021
to Q2/2021 60% 0% 9% 41% 67% 65% 50% 3% 31% 20% 18% 21%
Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Apr/21 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Apr/21
Thailand Fiji Mauritius
Domestic demand only Domestic demand only Domestic demand only
67% 0% 8% 19% 12% 33% 46% 0% 17% 16% 11% 13% 71% 0% 0% 11% 8% 0%
Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Apr/21 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Apr/21 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Apr/21
132 02 1 K E Y P E RF ORM ANCE D RIV E R
Estimated Occupancy rate 15% - 30% 30% - 45% 45% - 60% 60% - 75% >75%
PLATFORM Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Key Highlights
• The partial lifting of the
Domestic Slow ramp up expected Expected normal international travel
Self-managed travel in 3Q/2021, followed ramp up of restriction will allow
*excluded during the eased restrictions inter regional travel overseas travelers to enter
Konotta Maldives long are in place. major six tourist
holidays destinations in Thailand
during 2H2021
Strong demand from India, Entering to Expected resilient performance, • Solid Performance with
Russia, and Central Europe low season with supporting by the rebound of Positive EBITDA
CROSSROADS an absence of long-haul tourists throughout 2021
Indian tourists • ADR estimate to achieve
2019 level in Q4/2021
Mainly from the In Sep 2021, OTG Fiji • Fiji’s tourism industry
rebound of travel expected to reach 60% predicts to bounce back
Outrigger activities in Fiji, occ. rate, while first, depending upon the
followed the Mauritius foreseen to Travel Bubble expansion
“Pacific Bubble” recover at sluggish rate across Pacific
is in place
Domestic leisure Leisure and Transient travel across Europe • Considered as the most
bounce back fast, expected to restart from end of Jun 2021,
United followed the followed by “Vaccine Passport” framework
stable ADR portfolio among
others
Kingdom 4-steps for easing with other allowed countries • ADR target to beat 2019
preventive level at Q3/2021
measures
14Q1/2021 Operating & Financial Performance
P ORT FOLIO P E RF ORM A NCE B Y M A NAGE MENT P LA TFORM
Self-Managed Hotels Outrigger Hotels
USD/THB = 30.26 FJD/THB = 14.85
9,517 Q1/2020 MUR/THB = 0.76 Q1/2020
Q1/2021 Q1/2021
66%
6,233
5,386
55%
2,705 2,955
2,284
11% 10%
301 225
Occupancy ADR RevPAR Occupancy ADR RevPAR
Crossroads Hotels UK Hotels
USD/THB = 30.26 GBP/THB = 41.72 Q1/2020
Q1/2020
Q1/2021 Q1/2021
10,853
67%
60% 8,287
6,526 50% 2,347
2,173
5,564
18% 1,167
394
Occupancy ADR RevPAR Occupancy ADR RevPAR
16SUM M A RY OF SH R CO N SO LID A TED F IN A NCIAL P E RF O RM ANCE
Q1/2021 Revenue by management platform Quarterly Revenue from services
Unit: million baht Unit: million baht
1,144.9
Self-managed 32%
53% YoY
Outrigger
21% 543.8
CROSSROADS 16%
47% 73%
UK Portfilio
3%
8%
Q1/2020 Q1/2021
Revenue by geographies Q1/2021 Gross profit and margins
Unit: (%) Unit: million baht, (%)
33% 40%
Thailand 16% 8% 35%
1%
30%
Maldives 25%
2% 380.5 106% YoY 20%
Fiji 15%
Q1/2021
Mauritius -4% 10%
5%
(22.3)
United Kingdom 73%
0%
-5%
Q1/2020 Q1/2021
-10%
17SUM M A RY OF SH R CO N SO LID A TED F IN A NCIAL P E RF O RM ANCE
Adjusted EBITDA (1)
Unit: million baht
YoY: Reversed from Positive EBITDA in Q1/2020,
137.9 primarily from a declined in hotels operating revenue
and the temporary suspension of some hotels which
still have some types of fixed cost
QoQ: Soften Performance mainly from the effect of
(22.5) (43.2) the new COVID-19 wave that began at the end of last
year. Along with, the changing of revenue
Q1/2020 Q4/2020 Q1/2021 recognition of FS JV from share of profit or loss from
the investment to consolidated within the Company’s
financial statement since March 2021 onwards
Adjusted net profit (loss) (2)
Unit: million baht
Net profit YoY: Decreased similarly per EBITDA along with
for the period higher Depreciation & Finance cost from the FS JV
= (310.9)
transaction
Q1/2020 Q4/2020 Q1/2021 QoQ: Soften Performance mainly from the effect of
the new COVID-19 wave and the recognition of FS JV
(158.7) within the Company’s financial statement since
March 2021 onwards
(355.8)
(420.7)
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
(3) Non-recurring items are comprising of Gain on disposal of share of JV company transaction and disposal of sublease and Gain from FV adjustment on investment
in the joint ventures
18LOW GEARING & POSITIVE LIQUIDITY STATUS
Financial Position as at 31 March 2021 Liquidity status as at 31 March 2021
Cash balance
Liabilities,
Equity, 1,467.5 MTHB
43%%
43%
Total
Total
Equity,
Asset Available credit facility (1)
58% 668.2 MTHB
Asset 36,755.0
(1) including project loan
27,117.3 MTHB Liabilities,
MTHB Liabilities, 57%
42% IBD/E = 0.82x
31 December 2020 31 March 2021
Total Interest-bearing debts of 13,063.0 million baht Available debt room to support future growth
Debt headroom
Interest-bearing debt (IBD)
IBD/E ratio (x)
THB, Equity
GBP, 3.50x
31% Interest Interest
31% 44% 35,700
bearing debt bearing debt 2.50x
by Currency by Maturity 56%
13,063.0 1.50x
EUR, 3% 15,700
USD, 1.50x
FJD, 5% 0.82x 0.50x
30%
(4,300) -0.50x
Current Portion Long term Loan March 2021 2025F
19IMPACT ON FS JV TRANSACTION
2020 March 2021 onwards
Income Statements
Consolidate within the company’s
Revenue recognition Share profit (loss) from investment in JV/AS
financial statement
+180 MTHB in 2021
Depreciation* (Approx. + 220 MTHB per year)
–110 MTHB in 2021
Interest income (Approx. – 130 MTHB per year)
+138 MTHB in 2021
Interest expenses* (Approx. + 165 MTHB per year)
Financial Positions
Amount due from related parties –419 MTHB
Long-term loan to related parties –1,812 MTHB
Property, plant and equipment, net +11,346 MTHB
Goodwill +434 MTHB
Leasehold +3,512 MTHB
Interest bearing debt +4,342 MTHB
*Remark: Excluded impact from IFRS16
20Thank you https://investor.shotelsresorts.com ir@shotelsresorts.com +662 058 9888
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 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 import. Any statement in these materials that is not a statement of historical fact is a forward-looking statement that involves various risks and uncertainties. These 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 or opinions contained in this presentation. None of S Hotels and Resorts nor any of its shareholders, directors, officers or employees accepts any liability (in negligence or otherwise) whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith. Individual situations 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.
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