The coronavirus has taken a bite out of revenue for Minor International’s hotel operations in Europe.

Accor remains committed to expansion in Thailand and Asia despite a sluggish performance in China, while SET-listed Minor International (MINT) is starting to feel the impact from the outbreak on hotel operations in Europe.

“RevPAR [revenue per available room] was down 6.1% in China last year because of trade tensions with the US and unrest in Hong Kong,” said Patrick Basset, chief operating officer of Accor for Upper Southeast and Northeast Asia and the Maldives.

He said the group added 17 new hotels in this region last year, with four in Bangkok and one each in Phuket and Chiang Mai.

Asia-Pacific represents 50% of Accor’s global development pipeline.

Globally, Accor boasted of opening one hotel per day and signing a new project every 16 hours last year.

This year the chain aims to open around 30 new hotels and sign new agreements with 279 properties in AsiaPacific, the same number as 2019.

Mr Basset said the consequences of the coronavirus are unpredictable and evolving quickly, but he expects the Thai government to overcome challenges.

While hoteliers use this opportunity for staff training, maintenance and renovation in advance of a comeback, he wants Thai authorities to review immigration procedures to enable the arrival of more visitors in a more efficient manner, such as e-visas.

Mr Basset encouraged the government to develop new destinations to help take some of the overflow from popular destinations.

Local transport options are needed, such as reliable public taxi services in major provinces such as Phuket and Pattaya, he said.

Accor is diversifying its business beyond hotel operations to catering, wellness, events, entertainment venues and co-working spaces.

“Because of intense competition from other operators focusing on the same target, the group set a goal of becoming a secondary leader in specific segment-branded residences,” he said.

The company has 40 branded residences and 300 extended-stay hotels.

“Branded residences will grow alongside apartment or condo projects as buyers look for properties operated by a hotel company to ensure more attractive investment and good maintenance,” said Mr Basset.

Minor has implemented strategies to maintain competitiveness during the outbreak.

Chaiyapat Paitoon, chief strategy officer of Minor, said to minimise cancellations, the company allows guests to postpone their check-in date to maximise the revenue from less-affected destinations and control operation costs.

RevPAR in Europe dropped 3-4% in February after only a few weeks of the new coronavirus spreading there.

The company has a strong footprint in Europe, totalling 64% of overall room revenue, mostly attributed to 236 hotels under the NH Hotel Group.

MINT aims to promote domestic tourism as Thais shun travelling abroad.

The group is maintaining its plans to spend 10-15 billion baht on investment this year.