Minor Hotels reports 120% Q2 profit growth as global travel demand surges

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Global RevPar in Q2 grows 21% y-y, led by Thailand with 62% RevPar growth for owned hotels and 85% y-y growth across all Thailand properties

Minor Hotels has more than doubled its year-over-year core profit in the second quarter of 2023, reporting growth of 120% on the same period last year. The core profit of THB 2.6 billion for 2Q23 comes on the back of surging travel demand across all geographies, and continues a strong post-Covid financial recovery for the Bangkok-based hotel owner, operator and investor, which currently has a portfolio of more than 530 hotels and resorts in 56 countries. 

A robust start to the high travel season in Europe contributed to the strong result, as leisure and business travel demand across all key customer segments led to an average occupancy rate of 72% and an 18% year-over-year surge in average daily rate (ADR) for Minor Hotel’s owned properties in Europe and Latin America. 

Other key markets were also buoyed by continued travel demand recovery, led by Thailand with year-over-year RevPar growth of 62% for owned properties and 85% growth across all hotels in the country. 

The sustained upturn in global travel demand, together with implementation of Minor Hotels’ dynamic sales and marketing strategy, resulted in 2Q23 RevPar growth of 21% year-over-year. Half-yearly figures were also strong across the group’s global portfolio, with occupancy in H1 up 10% y-y and ADR increasing 14% y-y, driving strong group-wide RevPar growth of 35% y-y for the half. 

Dillip Rajakarier, CEO of Minor Hotels and Group CEO of Minor International, said he anticipates the strong results to continue in the second half of the year as demand in Asia picks up. “Our 2Q23 financial performance is a testament to the dedication and resilience of our team, seizing market opportunities as strong consumption recovery continues, resulting in record-high profitability,” said Rajakarier

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“Looking ahead, Minor Hotels is poised to continue its strong momentum in 2H23 and throughout 2024. Increased airline capacity has led many European destinations to surpass pre-pandemic levels of foreign arrivals, benefiting Minor Hotels in Europe. Our strategic locations and exclusive benefit programs allow us to accommodate rising business and leisure travel activities in late summer and early autumn. 

“The fourth quarter marks the peak season for Asia with growing demand from regional markets, long-haul US and European travelers, as well as upscale visitors from the Middle East.” Based on the strong H1 performance and reflecting its confidence in a strong positive outlook for the hospitality sector, Minor International Public Company Limited, the parent company of Minor Hotels, has approved an interim cash dividend payment of THB 0.25 per share to its shareholders.