Minor Hotels has reported record full-year core revenue of THB 121.4 billion (approx. USD 3.4 billion) in 2023, propelling the international hotel owner and operator's core net profit to grow by 450% compared to the previous year.
The record core revenue was 25% higher versus 2022, with topline total system sales reaching THB 157 billion (approx. USD 4.4 billion), and comes off the back of robust financial performance across most key markets for the group, notably its hotel operations in Europe and Thailand where core revenue grew 25% and 65% respectively on last year.
The consolidated core profit of THB 4.95 billion was on par with pre-Covid levels, achieving 96% of the 2019 full-year figure. Taking into account the rotation of assets during the pandemic period however, NPAT rose above 2019 levels as the group capitalised on significant ADR growth, disciplined cost management and established brand equity to offset rising interest rates and inflationary pressures which contributed to a 23% rise in operating costs.
Resurgent demand for leisure and business travel across most key markets drove strong rate growth across Minor's portfolio, with group-wide average daily rate (ADR) increasing by 10% compared with last year. Much of that rate growth was driven by hotels in Europe and the Americas, where ADR was up 14% on 2022, as well as Thailand where ADR across all Minor Hotels properties was up 29% on the same period.
Group-wide occupancy was reported at 66% for the year, an increase of 6% on 2022 figures, with Minor's Thailand hotels among the top performers, reporting occupancy growth of 17%.
The combined strength of ADR and occupancy figures meant group-wide RevPAR rose 22% versus 2022, with Thailand reporting 73% growth and Europe & Americas reporting a 26% increase.
In fourth quarter results, Minor Hotels reported core net profit of THB 1.89 billion, slightly below Q422 profit in real terms but an increase of 95% when adjusted like-for-like.
The strong growth trend is expected to carry through 2024, with room revenues in January and on-the-book value in February and March already surpassing 2023 levels by 39% in Thailand, and 20% in Europe.
Dillip Rajakarier, CEO of Minor Hotels and Group CEO of parent company Minor International (SET:MINT), said the results marked a strong return to growth for the group, and flagged a strategic focus on pipeline expansion in the near future. "We are pleased to report our outstanding performance in 2023. The results reflect the dedication and hard work of all our teams across all 56 countries. As we move forward, our focus remains on expanding our footprint, driving sustainable growth, reducing debt and creating long-term value for our shareholders."
Minor Hotels added a total of 1,257 rooms to its inventory in 2023, but has announced plans for aggressive expansion of its hotel portfolio over the next three years, with a target to add 200-250 new hotels to its existing portfolio of 540 properties globally. This ambition is supported by a robust pipeline and an adjustment to its long-standing "asset right" strategy that will see the group target a greater number of management and franchise contracts to drive sustainable growth while minimising capital expenditure.
Minor Hotels has already added three new managed hotels in Paris to its portfolio in 2024 under the NH Hotels brand, as well as a new Anantara property in Ras Al Khaimah.
Minor's strong hotel pipeline includes the entry of Anantara into Vienna, and both Anantara and Avani into the Kingdom of Saudi Arabia, alongside multiple new openings in the group's already thriving Middle East and Asia Pacific markets.