Minor upbeat on hotel, food outlook
MINOR International is confident its hotel and food businesses will put in strong performances this year, even though its net profit receded 2.7 per cent to Bt4.57 billion last year.
William Heinecke, chairman and CEO of the group, said yesterday that nearly two months into the year, the company has already seen many encouraging signs, including a strong economic rebound in its home country Thailand.
To date, its hotels are reporting year-on-year growth in revenue per available room (revpar), while last month Minor Food recorded same-store sales growth across most of its brands.
Minor Hotels’ net profit surged 27 per cent in 2016, reflecting its strategic acquisition capabilities.
Despite the mourning period and flooding in Thailand in the fourth quarter, its own Thai hotels reported revpar growth of 5 per cent for the full year.
The Tivoli portfolio performed particularly well, with strong demand driving room rates up.
Although the Thai tourism market was temporarily affected by the mourning and flooding in the south in the fourth quarter, industry fundamentals are strong and Thailand remains an attractive tourist destination. The industry is already on its way to recovery in 2017, with tourist arrivals increasing 6.5 per cent in January year on year.
Minor Hotels is not only seeing pent-up demand in its Thai hotel operations, but also in its residences, with the sales of two of the three units of Residences by Anantara Layan Phuket that were delayed from last quarter having been completed last month.
With the healthy real estate markets in Phuket and Chiang Mai and the quality of Minor’s residences product, Minor Hotels is confident of strong residential sales for the remainder of the year in both markets.
Internationally, Minor Hotels is continuing its marketing to attract customers to its hotels, including those in the Maldives and Africa.
The outlook for Tivoli Hotels & Resorts in Portugal is similarly strong, as the market benefits from its perception as a safe destination largely free of the disruptive events experienced elsewhere.
Tivoli is expected to reap benefits from renovation projects to be completed by the first half of this year, which should result in higher room rates.
