SHR Opportunity Day FY2020 - March 16th, 2021
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SHR Opportunity Day FY2020 March 16th, 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 ▪ FY2020 Operating & Financial Performance
SHR Company Overview
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
2,964
UK
3,115
Hotel Brands
8
29 Hotels
151 Santiburi Koh Samui 96 Total Number of
Resorts/Hotels 39
SAii Lagoon Maldives,
198
TH
Total Number
of Keys 4,647
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).
4
PROVEN TRACK RECORD Apr 2014: Acquired Santiburi Koh Samui (via Singha Estate)
TO GROW FOOTPRINT 2014 Nov 2014: Acquired Phi Phi Island Village Beach Resort
+376
+878
4,647 Oct 2015: Entered into JV partnership with FICO UK to acquire 26 hotels in the UK
+2,889
+274 +3 4,271 2015
3,390 3,393
3,116
Sep 2016: Acquired 3 more hotels under 2 Holiday Inn hotels and 1 Mercure with FICO UK
2016
227
2014 2015 2016 2017 2018
2018 2019 - 2020
2019
Jan 2017: Commencement of land reclamation, shoreline protection, landscaping and
2017 construction of Project Crossroads Phase One (via Singha Estate)
Mauritius
4%
Fiji 7%
Contribution by Mar 2018: Acquired Project Crossroads Phase One from Singha Estate
Maldives
Number of keys
9% 2018 Jun 2018: Acquired 6 Outrigger hotels
United Sep 2019: Commencement of operations for two hotels in Maldives
39 Thailand
Kingdom 2019
13%
67% Nov 2019: SHR trading on SET
Hotels
Feb 2020: Disposed 50% share investing in Island 3 Crossroads project
2020 Oct 2020: Establishment of “S Hotels and Resorts Management
Company Limited” to support the HMA business.
50% 38% 9%
Asia-Pacific Europe America
Feb 2021: Purchased the remaining 50% stake of 26 hotels in
Major customers
2021 the UK from FICO UK
Diversified portfolio can capture demand all over the world
5
TERMINATE HOTEL MANAGEMENT AGREEMENT WITH OUTRIGGER
& ENTER INTO SELF-MANAGED PLATFORM
Laguna Phuket Koh Samui
Konotta Maldives
Beach Resort Beach Resort
Cluster • To cluster operation of Outrigger with self-manage properties would suggest the economy of scales
• To adjust the strategies and policies to enhance potential and adaptability
Centralisation • To create cross exposure opportunities and promotions amongst Thailand properties
• To reduce license and management fee
Profitability • To cluster Group Purchases and Manning (GM, Finance office, and Sales Team)
• To ecolab hygiene implementation will provide cost saving
Optimization • To increase stay experience for guest by combining SAii Laguna Phuket & SAii Phi Phi Village and
Santiburi Koh Samui & nabor Koh Samui
• To Launch example of new SHR brand under HMA model
Other
• To lease-out the properties or implement Vacation Club
Opportunities
6
OUR HOTEL MANAGEMENT PLATFORM
Third Party Hotel Self-Managed
Self-Managed
Management Agreement with Franchise Agreement
5 property | 657 keys 32 properties | 3,614 keys 2 properties | 376 keys
7
Business Direction
E x ec u ti ve Sum m a r y
Medium to long term strategy has been adjusted to increase efficiency on portfolio management
▪ Acquisition of 50%
01 Realignment of portfolio
share in 26 hotels in UK from
our partner management as 12 top hotels could
▪ Reaching 100% own 36 hotels
and 50% own 3 hotels
04 contribute up to 80% of EBITDA
02 Commercial
▪ Global hotel alliance for global reach and loyalty
program for all properties
▪ Virtual Hotel & Clubhouse (App based platform
selling all resort services for domestic market)
Divestment of tail assets in UK has been
in progress as planned
03 Product Development
▪ Wellness project with Third Party Consultant
9
ACQUISITION OF ADDITIONAL 50% STAKES IN 52% European Travel
26 UK HOTELS in the number of Europeans planning
to travel during the next six months.
Commission (ETC)
- Increased its potential and management flexibility surveys the sentiment
- The portfolio strength is a strong repeat business for Domestic and Intra-
European Travel
spanning across numerous economic and leisure 0% 100%
destinations in the UK N/A 7%
Business Longhual Domestic
- Provided immediate EBITDA, driven by strong travel 24%
9% 36%
demand from domestic and interregional markets
- Created a recurring income spread throughout the Leisure and
Visitation Transient Interregional
year and less dependent on seasonal revenues 21% 63% 40%
Total Revenue Hotel EBITDA Net income exc. SH loan int’
Others United Kingdom 30.0 10.0 6.0
15% 25%
25.0 8.0
4.0
6.0
Target Revenue 20.0 2.0
4.0
Contribution
15.0 -
by Geographies Thailand 2.0
Q1 Q2 Q3 Q4
30% 10.0 - -2.0
Maldives Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
30% Y2017 Y2018 Y2019 Y2017 Y2018 Y2019 Y2017 Y2018 Y2019Balancing Growth
with Financial Strength
2020 5-year Destination (2025)
39 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
2020 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%
11Strategic Recovery Path for COVID-19
COV ID - 1 9 A N D H OSP ITALITY IN D UST RY OUT LOOK UP D A TE
COVID-19 Status Update Hospitality Industry Outlook Post COVID-19
International
Tourism 2020
declined 74%
across the globe
Potential Vaccine Development Status
- 69% - 71% - 70% - 76% - 84%
Company Current Expectation
▪ Mixed outlook on a recovery to be occurred in late 2021 or 2022
AstraZeneca-Uni. of Approved The roll out began on Jan 21; the UK has ordered
Oxford (UK) 100 million doses ▪ Foreseen the growing demand in open-air and nature-based tourism activities,
with domestic tourism and “slow travel” experiences
Pfizer-BioNtech (US) Phase 3/3 Authorized in more than 40 countries worldwide
to supply 1.3 billion doses by end of 2021 ▪ UNWTO extended scenarios recovery that could take 2 ½ to 4 years for
international tourism to return to 2019 levels.
Moderna (US) Approved - 30 million doses have been supplied to the US
- Remains on track to deliver 100 million doses by
Mar 21 and 200 million doses by Jun 21 “Hotel demand may not reach
Sinopharm (China) Approved The roll out would begin soon; gearing up to pre-COVID-19 levels until 2023”
manufacture 1 billion doses by the end of the year
▪ Domestic tourism will return to precrisis levels around 1 to 2 years earlier than
Projected 2021 GDP Growth outbound travel and non-air travel will likely to recovery faster
▪ Budget and economy properties will perform better than luxury properties
UK Vaccines will
China ▪ Digital services are vital for travelers in 2019
4.5% power +5.5%
8.1% ▪ Foreseen accelerate growth of “bleisure” travel; The working-from-anywhere
US global economic trend could permanently blur the lines between leisure and business travel. In
5.1% Europe growth in 2021
Thailand China is seeing both the leisure and business travel segments recover domestically
4.2% 3.2% ▪ “Scenic outdoor spots, Health & wellness programs, and Family-oriented activities”
Source: IMF, BoT segment will likely continue to be the engine propelling demand for leisure travel
13CURRE N T SIT UA TION IN OP E RA TE D COUN T RIE S
Thailand Maldives Fiji Mauritius UK
Vaccine status; 45% 100% 5% 5% 300%
- % Covered of Feb 2021 Jan 2021 April 2021 Jan 2021 Jan 2021
Population* The majority of the population As of Feb 2021, 23% of In talks about securing In talks about securing As of Feb 2021, 31% of
- Schedule to receive will be vaccinated in 2H21 population has been vaccinated vaccines of 70% population vaccines of 60% population population has been vaccinated
Borders opening Tourists from any country may Strict travel
Open-border policy Borders are not open Reintroducing national
only for a few acquire a 30-day VOA as long as restriction alongside except under lockdown and stricter travel
selected groups with they present a negative result a nationwide curfew restrictions
mandatory quarantine
state quarantine taken 96 hours before departure
Expected 2021 10.0 million 1.50 million 0.23 million 0.85 million 16.9 million
tourist arrivals
• 49% from 2020 • >100% from 2020 • 55% from 2020 • >100% from 2020 • 73% from 2020
• 75% from 2019 • 12% from 2019 • 50% from 2019 • 65% from 2019 59% from 2019
Catalyst ▪ Considering a “vaccine ▪ Aim to be the first ▪ Proposing “Bula Bubble” for ▪ Expected a slow ramp up ▪ Expected first step for
passport” to reduce vaccinated country in the AUZ and NZ from end of April 2021, easing lockdown in Mar’21
mandatory quarantine world and a very high ▪ Bula Bubble Rebate followed the eased ▪ From 29 Mar – Travel
period from 14 to 7 days vaccination ratio already program is expected in restriction are in place. outside local area is allowed
▪ Also considering to allow completed for tourism April 2021 onwards ▪ Normal ramp up foreseen ▪ From 21 Jun - Potentially
quarantining tourists to frontline team members. ▪ Collab with ITOs to drive to occur in Q3/21 towards see all legal limits on social
leave their rooms after 3 int’ markets in Q4/21 European markets contact removed, with the
days of self-isolation ▪ Launching exclusive deal final closed sectors of the
to boost sale such as Flash economy reopened
sale and rebook booking
*compared with doses reserved with phasing agreement
14STRONG PICK UP DEMAND IN MALDIVES, THANKS TO QUARANTINE FREE
Maldives Thailand Fiji
International demand Domestic demand only Domestic demand only
63% 27%
• Phuket and Phi Phi: 1 Jul 20 • Outrigger Fiji: 1 Jul 20 19%
• Samui: 15 Jul 20 • Castaway: 1 Aug 20
Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20
United Kingdom Mauritius
Domestic demand only Domestic demand only
31%
• SAii and Hardrock: 15 Jul 20 • UK Portfolio hotels: 1 Jul 20 14% • Outrigger Mauritius: 1 Dec 20
Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20
152 02 1 OUT LOOK B Y GE OGH A PHIE S
01 United Kingdom
01
• Robust domestic and Inter-region markets
• Expected travel restrictions to ease in late of Mar21
• Domestic leisure bounce back first while transient
03 expected to pick up Q3’21 onwards with groups
02 02 Maldives
• Reflected the positive recovery sign towards the end of
03 03 2020 and the beginning of 2021 on the back of strong
demand from India, Russia, and Central-Europe
• Since Jan21, Eastern Europe and Kazakhstan shown
better occupancies than the same period last year
• Government initiatives to increase business into the
South of the Maldives which could benefit Konotta
reopening per end of year
• Crossroads team almost 80% has been fully vaccinated
03 Thailand / Fiji / Mauritius
▪ Adapted strategies to enhance occupancies
• The sluggish recovery of business operation is estimated
in weekday and Implemented HOM, focusing in 1H2021 due to the travel restrictions
• Thailand and Mauritius heavily rely on Long-Haul
on workforce realignment market. While Fiji is dependent on AUS and NZ markets
• Cost mitigation plans throughout the year - Considering
▪ Headed toward digital distribution channel hotel closures in operational, but open for commercial2021 Forecasted Occupancy rate
% Occ. rate
75% Marketing Initiative Key Markets
80 HRH SAii
68%
70 ▪ Promoting SPRING SALE, • India and Russia are the
60 68% offering 35% discount on room leading markets in Q1/21 with
50 if book direct via brand.com better flight connectivity
55%
40 until 20 Dec 2021 • Luxury segment seeing a
30 ▪ Finalizing outsourcing of Beach stronger recovery
20 Club and re-opening for period • Retail and Wholesale
Jan* Feb* Mar Apr May Jun Jul Aug Sep Oct Nov Dec when Male Covid-19 lockdown segments are performing
measures of the City and better than Q4/20
*Note: Jan and Feb presented the Actual Performance Greater Male are being eased
17FY2020 Operating & Financial Performance
P ORT F OLIO P E RF ORM A NCE B Y M A N AGE MENT P LA TFORM
Hotel performance across portfolio materially affected by the COVID -19, as well as, the hotels had to suspend
operations from April 1, to July 14, 2020.
Self-Managed Hotels Outrigger Hotels
Unit: %, THB FY2019 USD/THB = 31.29
FJD/THB = 14.44 FY2019
7,777 FY2020 MUR/THB = 0.80 FY2020
72% 7,757 78%
6,076 5,879
5,591
4,762
24% 1,889 20%
1,193
Occupancy ADR RevPAR Occupancy ADR RevPAR
Crossroads Hotels (1) UK Hotels
USD/THB = 31.29 GBP/THB = 40.14
11,519 FY2019 FY2019
FY2020 70% FY2020
9,248
2,657
2,372
35% 1,864
28% 4,629 26%
2,636
621
Occupancy ADR RevPAR Occupancy ADR RevPAR
(1) officially opened on 1 September 2019.
19SUM M A RY OF SH R CON SOLID A TED F IN A NCIAL P E RF ORM ANCE
FY2020 Revenue by management platform Quarterly Revenue from services
Unit: million baht Unit: million baht
3,818.1
CROSSROADS 10%
Phase 1 Hotels
59% YoY
Outrigger 64% 1,562.9
Hotels
40%
Self-Managed 39%
26%
Hotels 21%
FY2019 FY2020
Revenue by geographies FY2020 Gross profit and margins
Unit: (%) Unit: million baht, (%)
35% 40%
Thailand 7% 3%
8%
35%
11% 34% 21% 1,327.7
30%
108% YoY 25%
Maldives 20%
15%
FY2020 Q4/2020
Fiji -7%
10%
5%
48% (105.4) 0%
Mauritius 68% -5%
FY2019 FY2020 -10%
20SUM 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: Decreased due to an absence of
revenue during the suspension period
together with a decrease in Share of
1,105.0 85% QoQ profit (loss) from an associate and
253.0
joint ventures.
QoQ: Improved 85% from a 161% rise
(148.1) (22.5)
FY2019 FY2020
in revenues while total operating cost
(596.7) Q4/2019 Q3/2020 Q4/2020 up only by 16%
Adjusted net profit (loss) (2)
Unit: million baht Net profit
for the period 25% QoQ YoY: Decreased similarly per
(98.4) = (2,370.7) EBITDA along with higher
depreciation on ROU assets
FY2019 FY2020 Q4/2019 Q3/2020 Q4/2020
QoQ: Improved 25% to reflect the
(158.4) business recovery
(355.8)
(477.3)
(1,908.2)
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 loss from impairment of assets, fair values adjustment of investments property, write-off inventory, and allowance
for doubtful accounts
21LOW GEARING & POSITIVE LIQUIDITY STATUS
Financial Position as at 31 December 2020 Liquidity status as at 31 December 2020
Cash balance
2,492.7 MTHB
Equity, Equity,
Total 61% Total 58%
Available credit facility (1)
Asset Asset 730.0 MTHB
29,161.6 27,117.3 (1) including project loan
MTHB Liabilities, MTHB Liabilities,
39% 42% IBD/E = 0.53x
Dec 2019 Dec 2020
Total Interest-bearing debts of 8,353.4 million baht Available debt room to support future growth
Unit: million baht
Debt headroom
8% Interest-bearing debt (IBD)
35% Equity IBD/E ratio (x)
THB, Interest USD, Interest 3.50x
46% bearing debt 42% bearing debt
35,700
by Currency by Maturity 2.50x
1.50x
57% 8,353.4 1.50x
15,700
0.53x
0.50x
FJD, 5% EUR, 7%
2021 2022 2023 Onwards -4,300 -0.50x
Dec 2020 2025F
22Thank 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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