Minor International is propelling forward with a vision for unparalleled financial success, reflecting the resilience of global tourism against geopolitical tensions and economic uncertainties.
As a notable force in the hospitality industry, Minor International Public Company Limited (SET: MINT) has achieved a milestone in its financial performance, with its net profit climbing 43% year-over-year to a remarkable THB 7,750 million in 2024. This remarkable achievement is a testament to the company’s robust operations, sustained global travel demand, and fortified financial standing.
The surge in the hospitality sector was fueled by an increase in revenue per available room (RevPar), market expansion, and stellar performance in its restaurant segment, spurred by brand innovation and increased customer footfall. The company has also effectively leveraged its growing asset-light business model to enhance operational efficiency and maintain financial discipline through debt reduction.
Anticipating the trends of 2025, MINT’s Group CEO, Dillip Rajakarier, expressed optimism during a recent press conference. He noted positive growth indicators, partly due to the release of ‘White Lotus Season 3,’ a social satire drama filmed in several of MINT’s Southern Thailand hotels, including those on Samui Island and Phuket. This media exposure has propelled average daily rates (ADR) by over 40% as set-jetters flock to experience these stunning Thai locales. The global broadcast of the series has attracted a wave of affluent tourists, enhancing spending in MINT’s offerings.
Rajakarier highlighted the strength of MINT’s brands and the strategic advantage gained from its asset-light model, which yields greater margins than its equity-owned hotels, though both avenues contribute favorably to the company’s income. MINT plans for more than half of its operations to transition to the asset-light model, aiming to expand its portfolio from 560 hotels in 2024 to 850 by 2027 and 1,000 by 2029. This expansive vision includes increasing its restaurant outlets from 2,700 to 4,500 by 2029.
The company’s hotel expansion will accelerate under the asset-light model, with the restaurant business growing through franchising. The capital expenditure (CAPEX) over the next three years is projected at 10-12 billion baht annually, facilitated by the cost-effective nature of the asset-light approach. This year alone, MINT is slated to open 54 new hotels, with over 100 additional hotels in the pipeline.
Beyond its hotel and restaurant ventures, Minor International is diversifying its luxury offerings to include cruises in Bangkok and Phuket in Thailand and Luang Prabang in Laos, alongside a luxury train service in Vietnam.
Additionally, Rajakarier addressed the ongoing deliberations regarding the establishment of a real estate investment trust (REIT), considering both Thailand and Singapore as potential bases. The board aims to select a market with robust foreign investment opportunities.
Finally, the CEO expressed confidence in the face of slower-than-expected GDP growth in 2024, asserting that as MINT is closely tied to the tourism sector, which is recovering robustly from the pandemic, the company remains poised for future growth. Rising tourist arrivals are a promising sign of MINT’s continued expansion and success.
