Minor to increase hotel portfolio by 50%

SET-listed Minor International Plc (MINT) plans to increase the number of hotels in its worldwide portfolio to 190 by 2019 from 126 through acquisition and hotel management services offerings.

Minor claims its hotel business is larger than many international hotel brands, such as Four Seasons Hotels and Resorts, which operates 94 properties. Minor operates 126 hotels under five of its own brands: Anantara, Per Aquum, Elewana, Oaks and Avani.

“It’s a good time to expand business in Europe and South America. The economic doldrums in Europe have lowered hotel investment costs,” chairman and chief executive William Heinecke said yesterday.

He said the weakening euro attracted tourists from other regions as well, particularly from the US.

Mr Heinecke foresees bright prospects for Thailand’s tourism this year, saying every market except Russia has already returned to normal. The group will continue to expand in Thailand through its Anantara brand.

Last month the group acquired hotels in Brazil and Portugal to pave the way for its entry into European and South American markets. It invested 6.21 billion baht for six hotels with over 1,600 rooms under the Tivoli Hotels and Resorts brand.

Minor recently announced the addition of Anantara Siam Bangkok Hotel (formerly Four Seasons Bangkok), located on Ratchadamri Road. It earmarked 600 million baht to renovate 354 hotel rooms and another 20 million to upgrade shops and restaurants on the premises.

The company expects Anantara managing the hotel will result in handsome income.

This year Minor projects revenue growth of 15-20% after posting revenue of 39.8 billion baht in 2014, up by 8%. Net profit was 4.4 billion, up 7%.

Last year hospitality profits rose 9%, driven by improved performance of Anantara Vacation Club and Oaks. Its restaurant business delivered a 3% year-on-year increase in net profit.

System-wide sales increased by 13% in 2014 as a result of 0.4% same-store sales growth and the addition of 164 new outlets. Under its 2015-19 strategy, Minor expects net profit will grow by 15-20%.

The company wants to have over 400 residences by 2019, 700 timeshare units, 3,300 restaurants and 360 retail shops and point-of-sale units.

MINT shares closed yesterday on the SET at 34.75 baht, up 75 satang, in trade worth 179 million baht.