Thai hospitality giant Minor International targets 20% revenue growth in 2023

Minor Hotels Europe & Americas SA

19/01/2023 09:52

BANGKOK, Jan 19 (Reuters) - Thailand-based hotelier
Minor International  MINT.BK  is targeting revenue growth of at
least 20% this year, its chief executive said on Thursday,
banking on a strategy of higher room rates and the return of
Chinese tourists. 
    "Let's not go for occupancy because flight capacity was
limited. Let's go for rates," Dillip Rajakarier told reporters
at a news conference, referring to the company's preferred
strategy last year. 
    Rates at hotels in the Maldives, Australia and Thailand last
year rose 15% to 40% higher than pre-pandemic levels and helped
to offset higher labour and interest rate costs, Rajakarier
said.
    Minor, which owns Spain's NH Hotel Group  NHH.MC , generates
more than half its hotel revenue in Europe, about 15% in
Thailand and the remainder across the Middle East, the Americas
and Australia. 
    "Europe has recovered very strongly ... and the tail winds
are coming from China," he said, adding the company is targeting
double-digit revenue growth over the next three years.
    Spending by Chinese tourists before the pandemic was around
$255 billion a year globally. That virtually ground to a halt
during the pandemic, but is expected to rebound after China this
month relaxed its travel restrictions. 
    Minor has ample liquidity, with 50 billion baht ($1.52
billion) in cash and unutilised credit facilities, and will next
month offer perpetual bonds worth up to 11 billion baht to
service debt, Rajakarier said. 
($1 = 33.0000 baht)
 (Reporting by Chayut Setboonsarng; Editing by Kanupriya Kapoor)
 ((chayut.setboonsarng@tr.com, Twitter: @ChayutSet;
+66854849033;))