Minor Hotels takes stake in Global Hotel Alliance

M Collection Hangzhou. Photo credit: Minor Hotels (M Collection Hangzhou)

Bangkok-based Minor Hotels has taken a minority stake in the Global Hotel Alliance, an independent group that has 33 brands with more than 550 hotels in 77 countries across its platform.The $3.2 million investment represents a 10-percent share of the GHA.

Minor Hotels' CEO Dillip Rajakarier will now join the GHA board of directors.

“Since joining the GHA in 2007, we have grown and developed our own brands and continue to acquire new ones, and membership [in] GHA fits well with our multi-brand strategy,” said Rajakarier. “GHA has consistently demonstrated the value of global customer reach and a strong CRM and loyalty program for our hotels, and so we are delighted to be able to take our place as a shareholder in the business, with the opportunity to help guide its growth over the coming years.”

The alliance is currently investing in new CRM and shared technology to build on the success of its Discovery loyalty program.

The 13 million members of GHA’s loyalty program are expected to generate $1.7 billion in room revenues this year, of which some $125 million is from customers moving between the alliance's member brands. GHA plans to double these numbers in the next few years, as independent brands look to collaborate with each other to share the common challenge of competing with consolidating major brands and third-party distribution providers.

A longstanding member of the GHA, Minor Hotels first entered the group with the Anantara brand. The hotel owner, operator and investor currently has a portfolio of more than 160 hotels and resorts in 23 countries across Asia Pacific, the Middle East, Europe, South America, Africa and the Indian Ocean.