Minor Hotels Reports Record Full Year Figures

Dark/Light Mode (14/02/24)  Minor Hotels has reported a record full-year core revenue of THB 121.4 billion (approximately USD 3.4 billion) in 2023, propelling the international hotel owner and operator's core net profit to grow by 450% compared to the previous year.

The record core revenue was 25% higher than in 2022, with topline total system sales reaching THB 157 billion (approximately USD 4.4 billion), and comes off the back of robust financial performance across most key markets for the group, notably hotel operations in Europe and Thailand where core revenue grew 25% and 65% respectively on last year.

The consolidated core profit of THB 4.95 billion was on par with pre-Covid levels, achieving 96% of the 2019 full-year figure.

Taking into account the rotation of assets during the pandemic period however, NPAT rose above 2019 levels as the group capitalised on significant average daily rate (ADR) growth, disciplined cost management and established brand equity, to offset rising interest rates and inflationary pressures which contributed to a 23% rise in operating costs.

Pool at the Anantara Riverside Bangkok

Resurgent demand for leisure and business travel across most key markets drove strong rate growth across Minor's portfolio, with group-wide ADR increasing by 10% compared with last year. Much of that rate growth was driven by hotels in Europe and the Americas, where ADR was up 14% on 2022, as well as Thailand where ADR across all Minor Hotels properties was up 29% on the same period.

Group-wide occupancy was reported at 66% for the year, an increase of 6% on 2022 figures, with Minor's Thailand hotels among the top performers, reporting occupancy growth of 17%.

The combined strength of ADR and occupancy figures meant group-wide RevPAR rose 22% versus 2022, with Thailand reporting 73% growth and Europe and the Americas reporting a 26% increase.

In fourth quarter 2023 results, Minor Hotels reported a core net profit of THB 1.89 billion, slightly below Q4 2022's profit in real terms but an increase of 95% when adjusted like-for-like.

The strong growth trend is expected to carry through 2024, with room revenues in January and on-the-book value in February and March already surpassing 2023 levels by 39% in Thailand, and 20% in Europe.

Minor Hotels added a total of 1,257 rooms to its inventory in 2023, but has announced plans for aggressive expansion of its hotel portfolio over the next three years, with a target to add 200-250 new hotels to its existing portfolio of 540 properties globally.

That ambition is supported by a robust pipeline and an adjustment to its long-standing "asset right" strategy that will see the group target a greater number of management and franchise contracts to drive sustainable growth while minimising capital expenditure.

Minor Hotels has already added three new managed hotels in Paris to its portfolio in 2024 under the NH Hotels brand, as well as a new Anantara property in Ras Al Khaimah.

Minor's strong hotel pipeline includes the entry of Anantara into Vienna, and both Anantara and Avani into the Kingdom of Saudi Arabia, alongside multiple new openings in the group's already thriving Middle East and Asia Pacific markets.

Minor Hotels currently has more than 540 hotels in operation in 56 countries around the world.

Latest exclusive video interviews: Future of Air Travel - Interview with Sumesh Patel, President of SITA Asia Pacific; Miss International Queen 2024 (MIQ 2024) - Interview with Alisa Phanthusak, MD, Tiffany's Show Pattaya, Thailand; 16 HD Video Interviews from Routes Europe 2024 in Aarhus, Denmark; 9 HD Video Interviews from Routes Asia 2024 in Langkawi, Malaysia; Standard to Open Residences in Hua Hin and Phuket, Thailand; Video Interview with Amar Lalvani, Executive Chairman; 9 Exclusive Video Interviews from ASEAN Tourism Forum 2024 in Vientiane, Laos; 8 NTO Press Conferences from ASEAN Tourism Forum 2024 in Vientiane, Laos; 13 HD Video Interviews from World Travel Market 2023 in London, England; 5 HD Video Interviews from APG World Connect 2023 in Monaco, France; and 15 HD Video Interviews from Routes World 2023 in Istanbul, Türkiye.