Minor Hotels Soar: 450% Profit Surge on Record Revenue Amidst Global Tourism Revival

February 16, 2024

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In a triumphant display of resilience and strategic prowess, Minor Hotels has announced a phenomenal 450% surge in core net profit, powered by record-breaking revenue figures for the full year 2023. This extraordinary achievement underscores the hotel giant’s remarkable comeback amidst a revitalized global tourism landscape.

The stellar financial performance saw Minor Hotels rake in a staggering THB 121.4 billion (approximately USD 3.4 billion) in core revenue, a remarkable 25% increase compared to the previous year. Bolstered by robust operations across key markets, particularly in Europe and Thailand, where core revenue skyrocketed by 25% and 65%, respectively, the group has solidified its position as a powerhouse in the hospitality industry.

The commendable feat was further accentuated by total system sales reaching an impressive THB 157 billion (approximately USD 4.4 billion), representing a substantial uptick in financial muscle for the renowned hotel owner and operator.

Minor Hotels’ unwavering commitment to excellence and astute financial management yielded a consolidated core profit of THB 4.95 billion, mirroring pre-pandemic levels and achieving a commendable 96% of the 2019 full-year figure. Notably, despite the challenges posed by the pandemic, the group’s net profit after tax (NPAT) surged beyond 2019 levels, showcasing its resilience and adaptability in navigating turbulent market conditions.

Driving this exceptional performance were robust market dynamics, with a resurgence in leisure and business travel fueling substantial rate growth across Minor’s expansive portfolio. Group-wide average daily rate (ADR) witnessed an impressive 10% surge compared to the previous year, propelled by significant gains in Europe, the Americas, and Thailand.

Occupancy figures also witnessed a notable uptick, with group-wide occupancy reaching 66%, marking a commendable 6% increase over 2022. Particularly noteworthy was the stellar performance of Minor’s Thailand hotels, which reported a remarkable 17% growth in occupancy, underscoring the region’s pivotal role in driving the group’s success.

The symbiotic relationship between ADR and occupancy culminated in a remarkable 22% increase in Revenue per Available Room (RevPAR) compared to the previous year, with Thailand leading the charge with an impressive 73% growth, while Europe and the Americas reported a commendable 26% surge.

In the fourth quarter of 2023, Minor Hotels continued its upward trajectory, reporting a core net profit of THB 1.89 billion, representing a commendable 95% increase on a like-for-like basis compared to 2022.

Looking ahead, Minor Hotels remains poised for sustained growth, with preliminary room revenues for January and the on-the-book value for February and March already surpassing 2023 levels by 39% in Thailand and 20% in Europe. Dillip Rajakarier, CEO of Minor Hotels and Group CEO of parent company Minor International, expressed his optimism, stating, “We are pleased to report our outstanding performance in 2023. As we move forward, our focus remains on expanding our footprint, driving sustainable growth, reducing debt, and creating long-term value for our shareholders.”

True to its commitment to expansion, Minor Hotels has unveiled ambitious plans to add 200-250 new hotels to its existing portfolio of 540 properties globally over the next three years. This strategic initiative is bolstered by a robust pipeline and a recalibration of its “asset right” strategy to maximise sustainable growth while minimizing capital expenditure.

Already making strides in 2024, Minor Hotels has added three new managed hotels in Paris under the NH Hotels brand and a new Anantara property in Ras Al Khaimah, signalling its unwavering commitment to innovation and expansion.

With promising ventures on the horizon, including the entry of Anantara into Vienna and the Kingdom of Saudi Arabia, alongside multiple new openings across the Middle East and Asia Pacific markets, Minor Hotels stands at the precipice of an unprecedented era of growth and prosperity.