Minor revising business plan after major hotel acquisition
MINOR International (MINT), a leading hospitality, restaurant and lifestyle operator, is in the process of revising its rolling five-year business plan, taking into consideration its acquisition of NH Hotel Group, which is listed on the Madrid Stock Exchange in Spain.
The complete plan revision is pending completion of the increase of its shareholding in NH Hotel. MINT aims to acquire 51-55 per cent in NH Hotel, up from 45 per cent it acquired recently, MINT deputy corporate chief financial officer and strategic planning Chaiyapat Paitoon said yesterday.
The current business plan, from 2017-22, and endorsed by the board before the NH investment, had set capital expenditure at between Bt40 billion to Bt50 billion with annual net profit growth targeted at 15 to 20 per cent. The capex excluded its investment in the NH Hotel Group.
William E Heinecke, MINT’s founder and chairman, said that in the distant future MINT would continue to remain focused on the current three core businesses – restaurants, hospitality and lifestyle brands distribution.
It will continue to bank on its core values, which comprise customer focus, result-oriented, people development, strong partnership and innovation, to further drive its global growth, he said at a celebration marking the 50th anniversary of Minor Group yesterday.
“Looking back, we’ve come a long way,” he added. “From humble beginnings as an advertising agency and office cleaning company, to our entry into the hospitality business in 1978, we have risen to countless challenges, and each time emerged stronger than before.
“From a single hotel and one restaurant in Pattaya 40 years ago, Minor has flourished into a truly global business reaching 64 countries across five continents.
“The combined strength of our subsidiaries and affiliated companies gives Minor a present-day portfolio comprising 549 hotels, 2,130 restaurants and 429 retail outlets across multiple brands. From start-up capital of slightly over US$1,000 and a handful of employees in Thailand, Minor International is today capitalised at $5.4 billion and counts on the efforts of over 80,000 people around the world.”
Heinecke attributed the group’s success to several key factors. Firstly, Minor has always had a long-term strategic plan, which has led to business diversification in terms of brands, business models and geographies, positioning the group for consistent growth in a world of uncertainty.
He also believed the group owed its success to the drive and determination of its people. Exceptional management and staff have been and continue to be its key success factor, he said.
MINT is one of Asia’s largest restaurant companies with over 2,100 outlets operating system-wide in 27 countries under well-known names, such as The Pizza Company, Swensen’s, Sizzler, and BreadTalk (Thailand).
MINT is also a hotel owner, operator and investor with a global portfolio of 164 hotels and serviced suites under well-known names, such as the Anantara, AVANI, Oaks, Tivoli, Elewana, Marriott, Four Seasons, to St Regis and Radisson Blu.
In addition, MINT recently reinforced its strategic expansion into Europe and South America with a 45-per-cent stake in NH Hotel Group, a leading operator of city-centre hotels. NH Hotel Group provides MINT with a portfolio of 385 hotels and almost 60,000 rooms under the NH Collection, NH Hotel, nhow and Hesperia brands in 30 markets across Europe, the Americas and Africa.
MINT is one of Thailand’s largest distributors of lifestyle brands and contract manufacturers. Among its brands are Charles & Keith, Brooks Brothers, Anello, Esprit, Bossini and Minor Smart Kids.
