Minor Hotels Reports Record-Breaking Revenue in 2023, Eyes Aggressive Expansion

Minor Hotels reports a record revenue in 2023 and outlines aggressive expansion plans, aiming to add 200-250 new hotels globally over the next three years, reflecting strong growth and recovery.

Minor Hotels, a global hotel owner and operator, announced a triumphant return to growth in 2023, with core revenue soaring to THB 121.4 billion (approximately USD 3.4 billion), marking a 25% increase over the previous year. This achievement propelled the company's core net profit up by an astonishing 450% compared to 2022. The significant revenue uplift was driven by exceptional performance across key markets, particularly in Europe and Thailand, where core revenues surged by 25% and 65% respectively.

The consolidated core profit of THB 4.95 billion nearly matched pre-pandemic levels, reaching 96% of the 2019 full-year figure. Despite a 23% rise in operating costs due to inflationary pressures and rising interest rates, the company capitalized on significant average daily rate (ADR) growth and disciplined cost management. Group-wide ADR increased by 10% year-on-year, with notable rate growth in Europe, the Americas, and Thailand.

Occupancy rates also showed a positive trend, with a 6% increase to 66% across Minor's portfolio, further boosting the group-wide revenue per available room (RevPAR) by 22% versus 2022. The fourth quarter of 2023 saw a core net profit of THB 1.89 billion, emphasizing the group's robust recovery trajectory.

Looking ahead, Minor Hotels anticipates continued growth in 2024, with early indicators showing room revenues and booking values outpacing 2023 levels. CEO Dillip Rajakarier highlighted the strategic focus on expanding the company's global footprint, driving sustainable growth, and creating long-term value for shareholders.

In line with its ambitious growth plans, Minor Hotels aims to add 200-250 new hotels to its existing portfolio of 540 properties over the next three years. This expansion strategy is supported by a robust pipeline and an adjusted "asset right" approach, prioritizing management and franchise contracts to drive growth while minimizing capital expenditure.

Already in 2024, Minor Hotels has expanded its portfolio with new managed properties in Paris under the NH Hotels brand and a new Anantara property in Ras Al Khaimah. The hotel group's pipeline includes exciting entries into Vienna and the Kingdom of Saudi Arabia with the Anantara and Avani brands, alongside multiple new openings in the Middle East and Asia Pacific regions.