Thailand's Minor Intl. sets high investment bar

Thailand-based hotel operator Minor International has reportedly established an investment budget of around $1.17 billion over the next five years with a target to have more than 200 hotels and 3,000 restaurant branches under the group by 2020.  It currently operates around 130 hotels and 1,700 restaurants globally.

According to Chaiyapat Paitoon, vice president of strategic planning and investor relations, and as reported by Deal Street Asia, the company will spend around $754 million on renovating hotels and restaurants, with the remaining dollars to be allocated to acquisitions. “We will still focus on acquiring the hotels as we believe that the hotel business has the potential to grow both domestically and internationally. In Thailand, we can see a speedy recovery of the tourism industry after a tragic bomb took place in Bangkok. Meanwhile, the global economic slowdown gives us a good chance to buy the assets in overseas at a good price,” Paitoon said.

According to Deal Street, around half of Minor's revenue comes from its hotel business. The new investment plan could push its net profit by 15-20 percent per year. Of that growth, around 80 percent will come from the existing assets and the other 20 percent from acquisitions.

Virtual Roundtable

Post COVID-19: The New Guest Experience

Join Hotel Management’s Elaine Simon for our latest roundtable—Post COVID-19: The New Guest Experience. The experts on the panel will share how to inspire guest confidence that hotels are safe and clean and how to win back guest business.

In October, Minor acquired Hotel Tivoli Oriente in Lisbon for 38.5 million euros, and now owns a total of five hotels in the Tivoli chain. The group also reported that the purchase “includes the right to ownership of the land and hotel assets, which are leased to third parties,” namely an investment fund managed by GNB Asset Management (formerly Espírito Santo Activos Financeiros), owner of the Tivoli Hotels & Resorts brand in Portugal.

Also last month, Minor announced a JV with Anantara to develop a property in Malaysia.

Suggested Articles

The company is extending furloughs of above-property employees and anticipates a significant number of position eliminations later this year.

Regions around the world reported GOPPAR declines in the triple digits for the month—but there's a light at the end of the tunnel.

Sign up for Hotel Optimization for clear insight, opinions and forecasting to help you quickly get back to profitability.