Tourism growth within Asean cited for strong SHREIT profits

Breaking News March 04, 2019 16:00

By The Nation

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The growth of the tourism industry in the Asean region, support from the business sector, and the strength of its hotel portfolio are being credited for 2018 profits of Bt141.62 million on revenues of Bt418.83 million by Strategic Hospitality Extendable Freehold and Leasehold Real Estate Investment Trust (SHREIT). 



Revenue per available room (REVPAR) is on an upward swing across the SHREIT’s portfolio of hotels, while the total asset valuation improved by 9.6 per cent with a net worth of US$143.2 million.

The performance report also highlights management’s strong ability to identify quality assets, Patan Somburanasin, managing director of Strategic Property Investors (SPI), an independent professional REIT manager, said on Monday.

SHREIT’s portfolio of assets includes the Pullman Jakarta Central Park Hotel in Indonesia, a 317-room 5-star hotel; the Capri by Fraser Hotel in Ho Chi Minh City, Vietnam, a 175-room 4-star hotel; and the IBIS Saigon South Hotel, a 140-room 3-star hotel in Ho Chi Minh City. The portfolio composition of three-to five-star hotels offers diversification through high-quality assets located in growing key cities and targeting various customer segments from international tourists to business travellers, said Patan.

Earlier this year, the Pullman Jakarta Central Hotel was honored by hosting the auctioning of paintings of Indonesian President Joko Widodo, to raise funds for election candidates. This clearly reflected the prime status of the hotel, which was recently recognised as the Best Luxury Art Hotel in Indonesia Award and the Best Hotel City Award (Indonesia), said Patan.

The REIT manager remains optimistic and confident in the ability of the assets to continue to generate sustainable revenue growth and is committed to develop and pursue a growth strategy and initiatives.

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