Minor Hotels exceed revenue, profit expectations

Amari Havodda, one of the properties managed by Minor Hotels | Photo: Amari Havodda

Minor Hotels, a hotel owner and operator with more than 550 properties in 56 countries, including the Maldives, has announced a reported net profit of THB 530 million (USD 14.5 million) for the first quarter of 2024.

This performance of the hotelier group comes due to the sustained increase in travel activities offsetting the historical seasonality of European hotel business.

Minor Hotels’ core revenue in the first quarter reached THB 29.6 billion (USD 811 million), marking a substantial 17% year-over-year gain and surpassing budget projections.

This robust performance was driven by the “continued strength in revenue generation, with healthy rate growth recorded” across the group’s hotel portfolio, particularly in Europe and Thailand.

Minor’s owned and leased hotels portfolio contributed 80% of core hotel and mixed-use revenues in the first quarter, up 21% year-on-year.

Management income surged by 26% year-on-year due to RevPAR growth across the group’s managed hotels, along with the addition of several new hotel management contracts throughout the year.

Regional Growth

The seasonality of the hotel business throughout Europe, where Minor Hotels operate approximately 300 properties, means the first quarter is historically a weaker period for the group.

Continued strong global demand, and the group’s ability to increase its rates led to strong revenue performance and the narrowing of its quarterly core net loss to THB 968 million (USD 26.5 million), a significant improvement from the core loss reported in Q1-2023.

Meanwhile, hotel occupancy across the group’s portfolio of eight brands showed significant improvement to 64%, up four percentage points in comparison to the corresponding quarter last year.

In Thailand, Minor Hotels saw an overall increase across in occupancy across its 23 properties of 10 percentage points compared to Q1-2023, hitting a better-than-expected average of 80%.

Hotels in Middle East and Africa also reported strong occupancy growth of 11 percentage points to 65%, led by the Anantara, Tivoli, and NH Collection branded properties.

Minor Hotels operate seven properties in the Maldives as well, which include Anantara Kihavah, Anantara Veli, Anantara Dhigu under its Anantara branded properties, along with Naladhoo Private Island, Niyama Private Island and two Amari branded properties, including Amari+ Fares Maldives and Amari Havodda, the latter of which it acquired from JLL Hotels and Hospitality Group on July 12, 2023.

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