Minor Hotels Reports 16% Profit Growth in 1H24 Results

• Europe performance drives 11% y-y revenue growth in Q2; H1 profit up 16% versus 2023.

• Owned hotels in Thailand record 14% year-on-year RevPAR increase in Q2; standout RevPAR growth in Samui (+32%), Phuket (+10%), and Bangkok (+11%)

• New properties in key markets including South Africa, Sri Lanka and Finland strengthen Minor's global presence

Minor Hotels has announced its financial results for the second quarter of 2024, showcasing a strong performance that saw quarterly revenues climb 11% year-on-year and consolidated core first-half profit rise 16% versus 2023.

The continued run of double-digit growth for the Bangkok-based group, which operates more than 550 hotels globally, was driven by sustained demand for both business and leisure travel across all markets, particularly Europe.

In the second quarter of 2024, Minor Hotels reported a consolidated core net profit of THB 2.6 billion (approx. USD 72 million), surpassing last year's figure by 3%. Consolidated core profit in 1H24 was THB 1.7 billion, marking growth of 17% versus 2023 figures, off the back of THB 66.1 billion in core revenue (+14% y-y).

The group reported strong year-on-year increases in occupancy across Asia, Indian Ocean and MEA, gaining six percentage points to 61% in 1H24, and four percentage points to 56% for 2Q24. Worldwide, occupancy results were positive but more modest, rising one percentage point for the quarter and two percentage points for the half.

Average daily rate (ADR) across the global portfolio rose 11% year-on-year for the quarter, driving an 12% increase in revenue per available room (RevPAR). For the first half, similar ADR growth of 11% pushed RevPAR up 15% versus 2023.  

Minor's owned hotels in Thailand experienced significant growth, with RevPAR in Q2 increasing 14% year-on-year. This reflects the strong rebound in international tourist arrivals from key markets such as the US, China, Europe, India, and Australia. The year-on-year occupancy increase of five percentage points and a 4% rise in ADR underline Thailand's enduring appeal as a top travel destination and the strength of Minor Hotels' asset portfolio. Hotels in Koh Samui, Phuket, and Bangkok outperformed expectations, with RevPAR growth of 32%, 10%, and 11%, respectively.

Dillip Rajakarier, CEO of Minor Hotels and Group CEO of parent company Minor International, expressed optimism about the company’s prospects for the remainder of 2024, citing a strong lineup of events in Europe and Asia’s peak leisure season in Q4. “We are well positioned to continue our growth momentum. Our strategic initiatives and premium asset and brand portfolio ensure that we can capitalise on these opportunities, increase our market share, and deliver exceptional results to our shareholders and stakeholders,” he said.

In the first half of 2024, Minor Hotels expanded its global footprint by opening several new properties. This includes four hotels under the NH Hotels & Resorts and NH Collection brands in Finland, South Africa and Sri Lanka, the brands' first properties in these countries.

The robust results underscore Minor Hotels’ resilience and its strategic positioning for continued growth in the global hospitality industry.