BANGKOK, 22 February 2024: Minor Hotels reported on Wednesday a record full-year core revenue of THB121.4 billion (USD3.4 billion) in 2023, resulting in the international hotel owner and operator’s core net profit increasing by a substantial 450% compared to the previous year.
The record core revenue was 25% higher versus 2022, with topline total system sales reaching THB157 billion (USD4.4 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 THB4.95 billion was on par with pre-Covid levels, achieving 96% of the 2019 full-year figure.
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% compared to 2022, and Thailand, where ADR across all Minor Hotels properties was up 29%.
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 a core net profit of THB1.89 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.
