The result marks a growth in net profit of 8% on the same period last year for the group, which currently has a portfolio of 540 hotels and resorts in 56 countries.
Significant growth in revenue per available room (RevPar) was recorded across the group, with an 11% year-on-year increase reported for the third quarter, surpassing pre-COVID-19 level by 26%. The growth reflected operational revival across all of Minor’s business models, robust global travel demand and successful sales and pricing strategy.
Minor’s European hotel business was a particularly strong performer, achieving its highest-ever third quarter RevPAR fuelled by robust leisure demand and a substantial increase in business travel supported by several large events, corporate conventions and trade fairs.
In Thailand, the increase in international arrivals, combined with Minor Hotels’ strategic penetration of non-traditional feeder markets, drove a robust 38% increase in RevPAR in the third quarter versus the same period last year.
Owned and leased hotels drive growth
Minor’s owned and leased hotels portfolio contributed 85% of core hotel and mixed-use revenues in the quarter, reporting 17% in system-wide RevPAR.Strong demand for travel saw average room rates rise 8% year on year at owned and leased hotels in Europe and Latin America, where occupancy also rose from 69% in 3Q22 to 71% in 3Q23, inching closer to the 2019 level of 75%. As a result, RevPar of owned and leased hotel portfolio in those regions exceeded the pre-COVID-19 figure by 19%.
Owned hotels in Thailand also saw a substantial 38% year on year increase in system-wide RevPar. The rise in international arrivals to Thailand, combined with Minor Hotels’ strategy to penetrate further into non-traditional feeder markets, drove average occupancy and room rates.
Robust travel demand fuels strong outlook
Minor Hotels anticipates growth to continue, with forward bookings displaying solid traction in the final quarter of the year, despite prevailing geopolitical and economic challenges.While Europe is entering a period of lower seasonality, Thailand is experiencing an upward trend as it enters its high season and performance from hotels in Australia are expected to strengthen in Q4 as it moves out of winter.
“Minor Hotels has continued its strong post-COVID momentum to achieve its highest-ever third quarter core net profits. This is a trend we expect will continue, as Minor Hotels stands to benefit from the strengthening global tourism industry, strong forward bookings, and increased travel activities,” said Dillip Rajakarier, CEO of Minor Hotels and Group CEO of Minor International.
“With this momentum, we look forward to strong year-over-year results in the next few quarters, particularly driven by hotel high season in Asia during 4Q23 and 1Q24."
Minor Hotels opened three new hotels in the third quarter, with one each in the Maldives, Australia and Thailand. It also rebranded two properties from NH Hotels to Avani, in Italy and Mexico.
About Minor Hotels
Minor Hotels is an international hotel owner, operator and investor currently with more than 540 hotels in operation. Minor Hotels passionately explores new possibilities in hospitality with a diverse portfolio of properties designed intelligently to appeal to different kinds of travellers, serving new passions as well as personal needs. Through our Anantara, Avani, Oaks, Tivoli, NH Collection, NH Hotels, nhow, Elewana, Marriott, Four Seasons, St. Regis, Radisson Blu and Minor International properties, Minor Hotels operates in 56 countries across Asia Pacific, the Middle East, Africa, the Indian Ocean, Europe, South America and North America. With dynamic plans to expand existing brands and explore strategic acquisitions throughout opportunistic markets, Minor Hotels pursues a vision of a more passionate and interconnected world.For more information, please visit www.minorhotels.com.
* Marion Walsh-Hedouin at mwalsh@minor.com
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