Hospitality/S Hotels and Resorts

SHR sets to allocate 3-3.5 billion to expand business this year

Editorial staff

S Hotels and Resorts Public Company Limited (SHR) plans to expand its business via M&A and invest more in upper upscale to support its long-term growth.

Michael David Marshall, Chief Executive Officer of S Hotels and Resorts Public Company Limited, or SHR, said that in 2026, the company will expand its business through its Scaling to New Heights, Unlocking Greater Value plan, accelerating growth and unlocking long-term value creation through three core strategies.

Michael David Marshall, Chief Executive Officer of S Hotels and Resorts Public Company Limited, or SHR

The first strategy, asset rotation, focuses on proactive portfolio management with an emphasis on asset quality over quantity to create sustainable long-term value. During Q1 2026, the company completed the divestment of 15 hotels in the United Kingdom located outside primary markets and largely reliant on domestic demand. Proceeds from the transaction will be used to repay high-interest bank loans and optimize capital allocation toward higher-yield assets.

In parallel, SHR has allocated an investment budget of approximately 3,000 to 3,500 million baht to expand in Thailand, focusing on Bangkok, the south, and the Eastern Economic Corridor (EEC) while selectively investing in upper-upscale hotels and adopting cluster management to enhance operational efficiency and support long-term growth.

The second strategy, Asset Enhancement, aims to transform the portfolio into a premium lifestyle-driven hotel portfolio. In collaboration with The Ascott Limited, a leading global hospitality operator, the company is rebranding and upgrading four hotels in the United Kingdom under lifestyle-oriented brands, including The Unlimited Collection and lyf, alongside room upgrades and enhanced facilities to strengthen competitiveness and long-term asset value. Hotels under The Unlimited Collection brand are now fully operational, while two lyf properties are expected to be completed and launched in mid-2026, supporting an ADR increase of approximately 20 to 30 percent compared with 2024.

In addition, SHR plans to upgrade room products at two SAii Hotels and Resorts properties. SAii Phi Phi Island Village will renovate all 12 hillside pool villas, while SAii Maldives Lagoon, Curio Collection by Hilton, will add private pools to 20 existing overwater villas and develop 18 new overwater villas to meet demand from upper-tier guests, enhance pricing power, and support long-term ADR growth.

The third strategy, Experience-Led Brand Growth, highlights SAii Hotels and Resorts as a distinctive upper-upscale lifestyle brand. The company will further develop its brand pillars and signature experiences, spanning wellness, sustainability, and mindful culinary offerings, to strengthen differentiation and long-term brand equity.

Together with Ascott-affiliated brands, including The Unlimited Collection and lyf, SHR will elevate guest experiences through thoughtful design, local cultural integration, and curated activities aligned with global experiential travel trends.

Driven by these strategies, SHR targets portfolio RevPAR growth of 20-25% from 2025 levels and expects to improve its EBITDA margin towards 30% through disciplined cost management and operational excellence while reducing its average cost of debt by more than 0.50%.

Alongside these three strategies, the company continues to advance its sustainability agenda in parallel with business growth, placing strong emphasis on climate resilience.

SHR has installed solar panels across multiple properties in Thailand and the Maldives, bringing total installed capacity to over 2,676 kilowatt-peak (kWp). In the past year, solar energy accounted for more than 14 percent of total electricity consumption. The company is also systematically enhancing its energy efficiency management to optimize energy usage and manage long-term costs.

Hotels within the portfolio also organize numerous sustainability initiatives that engage guests and local communities, raising awareness of environmental protection and ecosystem conservation and reinforcing SHR’s role in advancing responsible development on a global scale. 

“SHR is entering a new phase of growth with strong strategies and a clear direction. The company is committed to enhancing portfolio quality, investing in high-potential assets, and accelerating profitability to achieve a sustainably higher level of performance,” Mr. Marshall concluded.

S Hotels and Resorts Public Company Limited, or SHR, is a subsidiary of Singha Estate Public Company Limited, or S. Its portfolio spans five countries, including Thailand, the Maldives, Fiji, Mauritius, and the United Kingdom, comprising more than 11 brands across five key asset groups, including hotels operated under its proprietary brands SAii Hotels and Resorts and Santiburi; hotels under the Outrigger Hospitality Group brand; hotels within the CROSSROADS Maldives project; upper midscale hotels in the United Kingdom; and joint venture hotels, reflecting a diversified investment strategy and sustainable long-term growth.