In a stunning display of financial prowess, Minor Hotels has shattered records with its full-year core revenue for 2023, reaching a towering THB 121.4 billion (approximately USD 3.4 billion). This extraordinary achievement marks a 450% surge in the international hotel owner and operator’s core net profit compared to the previous year, setting a new benchmark in the hospitality industry.
The impressive core revenue, which saw a 25% increase over 2022, is backed by robust financial performance across key markets. Notably, hotel operations in Europe and Thailand were significant contributors, with core revenue growths of 25% and 65%, respectively. These figures testify to Minor Hotels’ strategic positioning and operational excellence.
The consolidated core profit of THB 4.95 billion aligns with pre-Covid levels, achieving a remarkable 96% of the 2019 full-year figure. This recovery is particularly noteworthy, considering the asset rotation during the pandemic. The rise in Net Profit After Tax (NPAT) above 2019 levels is a clear indicator of the group’s resilience, successfully navigating through ADR growth, cost management challenges, and the pressures of rising interest rates and inflation, which led to a 23% increase in operating costs.
The resurgence in leisure and business travel demand has been a boon for Minor Hotels. The group-wide average daily rate (ADR) saw a 10% increase compared to the previous year, driven primarily by their hotels in Europe, the Americas, and Thailand. The significant ADR growth, especially a 29% rise in Thailand, underscores the group’s strong market positioning and pricing strategy.
Occupancy rates also depict recovery and growth, with a 6% increase to 66% for the year. The Thailand hotels, in particular, stood out with an impressive 17% growth in occupancy. This robust performance underlines the attractiveness of Minor Hotels’ properties and the effectiveness of their operational strategies.
The combined strength of ADR and occupancy led to a 22% rise in group-wide Revenue Per Available Room (RevPAR), signalling a healthy recovery and growth trajectory. Thailand, Europe & and the Americas reported remarkable growths of 73% and 26%, further solidifying Minor Hotels’ position as a leader in the global hospitality market.
The fourth quarter of 2023 saw Minor Hotels report a core net profit of THB 1.89 billion. While slightly below the Q4 2022 profit in real terms, it represents a substantial 95% increase when adjusted like-for-like. This indicates not just a recovery but a robust upward trajectory in profitability.
Looking ahead to 2024, strong growth is expected to continue. Room revenues in January and on-the-book values for February and March are already surpassing 2023 levels by significant margins – 39% in Thailand and 20% in Europe. This bullish outlook clearly signals Minor Hotels’ strong market presence and operational excellence.
Dillip Rajakarier, CEO of Minor Hotels and Group CEO of parent company Minor International, expressed satisfaction with the 2023 results. He emphasized the collective efforts of their teams across 56 countries. He outlined the strategic focus on expanding their footprint, driving sustainable growth, reducing debt, and creating long-term shareholder value.
In 2023, Minor Hotels expanded its inventory by 1,257 rooms and has set ambitious targets for the next three years. The group aims to add 200-250 new hotels to its existing portfolio of 540 properties globally. This expansion plan is underpinned by a robust pipeline and a shift in their long-standing “asset right” strategy, focusing more on management and franchise contracts to drive sustainable growth while minimizing capital expenditure.
In 2024, Minor Hotels has already added three new managed hotels in Paris under the NH Hotels brand and a new Anantara property in Ras Al Khaimah. The pipeline includes exciting entries like Anantara into Vienna and both Anantara and Avani into the Kingdom of Saudi Arabia, alongside multiple openings in the Middle East and Asia Pacific markets.
Minor Hotels’ record-breaking performance in 2023 clearly indicates the group’s resilience, strategic acumen, and robustness in the global travel and hospitality industry. With ambitious expansion plans and a focus on sustainable growth, Minor Hotels is poised to redefine the global hospitality landscape in the coming years.
Written by: Bridget Gomez
