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Minor Hotels posts 2pc Q2 profit growth amid uneven market conditions

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Minor Hotels reported steady growth in the second quarter of 2026, with core profit rising 2% year-on-year to THB 2.8 billion (approximately $84.3 million), supported by continued strength across Europe and the Americas that helped offset weaker trading conditions in the Middle East.

Core revenue increased 1% to THB 35.8 billion, while disciplined cost management lifted EBITDA 2% to THB 7.5 billion.

System-wide revenue per available room (RevPAR) was broadly stable year-on-year, as a 1% rise in average daily rate (ADR) was offset by a one-percentage-point decline in occupancy to 68%.

Europe & Americas was the group’s strongest-performing region during the quarter, recording 5% RevPAR growth, driven particularly by Spain, Central Europe and Italy.

Thailand also delivered pockets of strength, with luxury properties recording a 7% RevPAR increase on higher rates.

Performance across Asia, the Indian Ocean, Australasia, the Middle East and Africa was softer overall, with the Middle East facing the greatest pressure.

For the first half of 2026, Minor Hotels recorded a 3% increase in system-wide RevPAR, supported by a 4% rise in ADR.

Occupancy declined one percentage point to 66%. Europe & Americas posted 5% RevPAR growth, while Thailand rose 6% and the wider Asia and Indian Ocean portfolio increased 10%.

Core revenue for the first half rose 3% to THB 66.2 billion, while EBITDA increased 2% to THB 10.9 billion.

Core profit declined 4% to THB 2.2 billion, reflecting significant renovation works at owned properties and unrealised foreign exchange losses.

Development momentum accelerates

Minor Hotels continued to expand its asset-right strategy during the quarter, signing hotel management agreements for 20 new properties and bringing its first-half total to 29 properties, representing 2,165 keys. The group is now on track to exceed its record 40 signings in 2025.

Recent agreements include Anantara Miami Resort & Residences, marking Anantara’s US debut, three Anantara properties in India and the group’s entry into Turkey.

Minor Hotels also announced The Wolseley Hotel New York, the first property under The Wolseley Hotels brand, and signed Avani Kyoto, marking the brand’s debut in Japan.

During the first half, the group opened 11 hotels with 1,167 keys, including Tivoli Palazzo 1880 Lecce Hotel, new properties in Slovenia and Croatia, and NH Hua Hin in Thailand.

The group also rebranded several properties and announced the evolution of Anantara Vacation Club into Minor Vacation Club as its vacation ownership business expands into a multi-brand model.

“This was a resilient quarter given the environment we’re operating in, and it underscores the value of a diversified portfolio,” said Dillip Rajakarier, Group CEO of Minor International, the parent company of Minor Hotels. “Our teams across all regions stayed disciplined on rate and costs, which allowed us to protect profitability even as performance diverged across markets. Geopolitical tensions, currency volatility and shifting travel patterns remain factors we’re monitoring closely. We expect demand to stay uneven through the rest of 2026, and we’ll continue to track forward bookings for the second half as conditions evolve.”

Minor Hotels said its geographic diversification, development pipeline and focus on rate integrity and operational efficiency provide a platform for continued growth despite uneven market conditions expected during the remainder of 2026. -TradeArabia News Service


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