(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.
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