Minor Hotels Reports Strong Growth in Q3 Results

Minor Hotels has continued its strong growth trajectory, with Q3 results showing significant increases in both core profit and revenue. The group owns and operates more than 560 hotels across eight brands worldwide and reported a core net profit of THB 3.1 billion for the first nine months of 2024. This marks a 13% year-on-year increase despite the negative impact of an unrealized foreign exchange loss.

Year-to-date core revenues reached THB 100.2 billion, which is 11% stronger than last year and exceeds budget projections. Hotels in Europe and Thailand primarily drove this impressive performance. The company’s ability to exceed forecasts highlights its operational efficiency and responsiveness to market conditions, characterized by successful revenue optimization strategies and a strategic focus on key markets.

The solid growth in the third quarter was bolstered by strong demand for both business and leisure travel across Europe, while Minor's home base of Thailand also experienced a robust low season. Occupancy rates across the global portfolio reached 69% in Q3, an increase of one percentage point from the previous year. Additionally, systemwide Revenue Per Available Room (RevPAR) grew by 6% in Q3 compared to the same period last year and was up 12% year-to-date.

Minor Hotels Europe & Americas achieved a notable 9% year-on-year increase in Revenue Per Available Room (RevPAR) and a 7% gain in Average Daily Rate (ADR). This growth was bolstered by the high travel season, particularly in Spain, Central Europe, and the Benelux region, which saw rising visitor numbers from the US and UK. Taking advantage of this favourable environment, Minor Hotels successfully implemented strategic pricing and marketing initiatives to maximize these strong travel trends.

In the first nine months of 2024, Minor Hotels Europe & Americas reported revenue of EUR 1,789 million, representing a 10.9% increase compared to the same period in 2023. A key driver of this growth was a 6.2% year-over-year increase in ADR for the region, with Spain and Central Europe leading the performance gains across the portfolio. RevPAR also saw an 8% increase, highlighting Minor’s focused pricing strategy and the enhanced demand in high-growth regions. This strong performance translated into a substantial 52% growth in recurring net profit, totalling EUR 141 million.

The upward trend continued in the third quarter, with revenues reaching EUR 644 million—a 10% increase compared to Q3 2023. This growth was driven by a 7.3% rise in ADR to EUR 152, which accounted for 83% of the RevPAR growth. Spain and Central Europe demonstrated particularly strong performance during this period.

Despite the third quarter traditionally being a low season in Thailand, RevPAR (Revenue Per Available Room) increased by 12% during this period, driven by a steady influx of international tourists and robust domestic travel. Occupancy rates rose by two percentage points year-on-year to reach 66%. Minor's yield optimization strategy contributed to a 9% increase in Average Daily Rate (ADR) and a 2% improvement in occupancy, demonstrating the company’s ability to attract diverse and profitable traveller segments throughout the year.

In the third quarter, Minor launched several new properties in Asia, including an NH Resort and an NH Collection hotel in Sri Lanka, an NH Hotel in Bangkok, and the announcement of an NH Collection Resort in Koh Samui. Half of these new openings operate under management contracts, aligning with Minor’s strategy to enhance profitability while utilizing its management infrastructure to expand in key, high-growth markets. These new additions strengthen the company's market position and broaden its appeal to a wider range of travellers.

As the high season approaches, Minor Hotels is strategically positioned to take advantage of strong demand in its key markets. Forward bookings in popular destinations such as Thailand and Bali are increasing, fueled by exclusive holiday experiences aimed at high-end travelers. In Europe, corporate travel demand remains steady, and bookings for the December holiday season are gaining momentum.