Minor International Public Company Limited (SET: MINT) disclosed a statement following the decline of its share price on Friday due to concerns of lower hotel bookings in Paris amid lots of controversial incidents at the Olympic 2024.
The share price of MINT was down 4.31% to THB27.75 per share as of 14:56 local time in Bangkok, Thailand.
The Paris Tourism authority recently cut estimates on Olympics visitors to 11 million, which is 4 million fewer than originally expected.
According to the report from French media outlet Le Monde in late June, it was noticeable that tourists showing up at Notre-Dame were less than usual. It went on to say that Parisian hoteliers recorded an average occupancy rate of 63% during 24-30 June, compared to an occupancy of 80-85% during the same period in 2023, citing the data from MKG.
The Paris Olympic 2024 drew a lot of criticism and concerns starting with a sabotage at the rail system a day before the opening ceremony, thieveries, including 11 Hermès bags from Qatari Princess, the quality of Seine river, the controversial opening that many said was a mockery of Christianity and a pass for biological male to compete in women’s sports.
Despite all of the dramas and concerns, MINT stated that its forward bookings in Europe in the third quarter continue to show strength, with total revenue growing at double-digit rate in July and August. Both Southern and Northern Europe, such as Spain, Italy, Germany, Netherlands and Belgium reported robust operating performances with increases in both occupancy and room rates.
The company continues to reap benefits of major events throughout Europe. Although there has been some speculation about a potential shortfall from the Summer Olympics in Paris, where MINT has three hotels under management contract, the impact (if any) would be more than offset by revenue and business activities from the additional 284 hotels MINT operates across Europe.
Additionally, MINT’s hotels in key and secondary cities in Germany reported significant growth in RevPar, benefitting from the positive impact of UEFA European Football Championship in June and July 2024. For example, Munich saw a 30% y-y increase in RevPar, followed by Frankfurt +29%, Berlin +22%, Hamburg +20% and Dusseldorf +18% in July 2024.
MINT stated that it remains confident and the company is well-positioned in continuous strong momentum for the remainder of 2024.
