Core revenues for the year so far climbed to THB 100.2 billion, a robust 11% increase compared to the previous year, surpassing budget expectations. This achievement was largely driven by outstanding performances in its European and Thai hotel operations. Minor Hotels’ ability to exceed projections demonstrates its adept operational strategies and responsiveness to market dynamics, focusing on revenue optimisation and strategic investments in key regions.
The third quarter’s strong results were bolstered by high demand for business and leisure travel in Europe, complemented by a thriving low season in Thailand. Global occupancy rates reached 69% in Q3, improving by one percentage point year-on-year. Additionally, systemwide Revenue Per Available Room (RevPAR) rose by 6% in Q3 compared to the same period last year and recorded a 12% increase year-to-date.
European Portfolio Powers Growth Momentum
Minor Hotels Europe & Americas recorded a robust 9% year-on-year increase in RevPAR alongside a 7% rise in ADR, reflecting a strong high season performance. Markets like Spain, Central Europe, and the Benelux region benefited from a surge in visitor numbers, particularly from the US and UK. Leveraging this favorable environment, Minor Hotels implemented strategic pricing adjustments and marketing initiatives, amplifying growth aligned with rising travel demand.
For the first nine months of 2024, revenue for Minor Hotels Europe & Americas reached EUR 1,789 million, a 10.9% growth compared to the same period in 2023.
Driving this success was a 6.2% year-over-year increase in ADR, reaching EUR 146, with Spain and Central Europe standing out as top-performing regions. RevPAR climbed 8% to EUR 101, a testament to Minor’s sharp focus on pricing strategies and demand optimization in high-growth markets. This operational excellence contributed to a 52% surge in recurring net profit, totaling EUR 141 million.
The third quarter reinforced this upward trend, with revenues reaching EUR 644 million, a 10% increase over Q3 2023. A 7.3% rise in ADR to EUR 152 accounted for 83% of RevPAR growth, with Spain and Central Europe continuing to excel.
Thailand Shines in Asia
Despite Thailand’s Q3 coinciding with its low season, Minor Hotels posted an impressive 12% growth in RevPAR, buoyed by strong international arrivals and vibrant domestic travel. Occupancy grew by two percentage points year-on-year to 66%. Enhanced yield management strategies pushed ADR up by 9%, while increased occupancy underscored Minor’s ability to attract a diverse range of high-value travelers throughout the year.
Q3 also saw significant developments in Asia, including the launch of an NH Resort and NH Collection hotel in Sri Lanka, an NH Hotel in Bangkok, and the announcement of an NH Collection Resort in Koh Samui. With half of these properties under management contracts, Minor Hotels continues to prioritize profitability while scaling its management operations in high-growth destinations. These strategic additions further bolster the company’s market presence and appeal to a wider array of travelers.
Group poised for continued growth
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Our outstanding performance this quarter underscores the strength of our strategic focus on high-growth markets and our agility in adapting to evolving travel dynamics. The robust expansion in Europe, coupled with Thailand’s continued recovery, showcases the success of our revenue optimisation initiatives and our unwavering commitment to delivering exceptional guest experiences. As we approach the high season, we are well-positioned to capitalise on rising demand, driving sustained growth and delivering substantial value for our stakeholders.” Dillip Rajakarier, CEO of Minor Hotels and Group CEO of Minor International
As the peak travel season approaches, Minor Hotels is strategically poised to capitalize on growing demand in its primary markets. Advance reservations are increasing in sought-after destinations such as Thailand and Bali, fueled by tailored luxury experiences designed for discerning travelers. Meanwhile, in Europe, corporate travel continues to hold steady, while interest in December holiday getaways is rapidly gaining traction.
Tags: Minor Hotels Europe, America, Asia, Revenue Growth
