Minor Int’l unveils major global expansion strategy

 

Minor International (MINT) is gearing up for significant global expansion, with plans to launch a US$1.5 billion Real Estate Investment Trust (REIT) by the end of 2025, marking a pivotal move in the company’s growth strategy.

 

Group CEO Dillip Rajakarier announced during a press conference on Monday (February 17) that the REIT initiative aims to release approximately $700 million in cash from asset sales, which will be used to reduce debt and finance future expansion plans.

 

(left) Dillip Rajakarier

 

The Thailand-based hospitality giant has outlined an ambitious growth trajectory, targeting an expansion to 1,000 hotels by 2029, with 80% of additions coming through managed contracts and franchising agreements. This asset-light approach is designed to keep capital expenditure at 10-12 billion baht annually over the next three to four years.

 

In the hospitality sector, MINT is aggressively expanding its luxury portfolio through strategic partnerships, including a recently signed joint venture with Royal Holdings to develop 22 luxury hotels in Japan over the next decade. 

 

 

The company is particularly focused on growing its ultra-luxury brands – Anantara, Avani and Tivoli – which are expected to attract substantial foreign investment.

 

The restaurant division is pursuing equally ambitious growth plans, with MINT aiming to reach 4,500 restaurants by 2029.

 

The expansion is driven by innovative concept launches and franchise development, including new brands such as Steak & More in Thailand and BatterCatch in Singapore. The company has successfully expanded global franchise presence with brands including Benihana, Sizzler and GAGA, with openings in Paris, Japan, and Vietnam.

 

 

 

Rajakarier expressed optimism about the industry outlook, citing strong tourism recovery across key markets.

 

“We’re seeing robust growth in tourism arrivals across Europe, Thailand, and the Middle East, with Asia remaining a top destination," he noted.

 

The company's confidence is reflected in its 2024 performance, which saw revenue per available room (RevPAR) growth of 9% in Europe, led by strong performance in Spain, and an impressive 17% growth in Thailand, driven by increased international arrivals and expanded airline routes.

 

This optimistic industry outlook is supported by MINT’s strong financial results for 2024, with net profit increasing 43% year-on-year to 7.75 billion baht. The fourth quarter was particularly strong, with profits surging 269% to 3.6 billion baht, providing a solid foundation for the company’s expansion plans.

 

The company’s restaurant business has also demonstrated robust growth, with total system sales increasing by 8% in Thailand and 12% in Singapore, reflecting strong consumer demand and successful brand innovations.

 

 

Looking ahead, MINT has outlined ambitious targets in its 2024-2027 strategic roadmap, including:

• Annual revenue CAGR of 6-8%
• Core net profit growth of 15-20%
• Core ROIC exceeding 12%
• Expansion to 850 hotels and 4,000 restaurants by 2027

 

The company’s financial position has strengthened considerably, with net interest-bearing debt to equity improving from 1.0x in 2023 to 0.8x in 2024, and net interest-bearing debt to EBITDA decreasing from 4.9x to 4.3x. This improved financial flexibility positions MINT well for its ambitious expansion plans.
 

 

“With our significantly stronger balance sheet and clear strategic direction, we are well-positioned to accelerate growth in 2025 and beyond,” Rajakarier said. "We will continue to capitalise on global tourism trends, expand our asset-light model, and drive innovation across our hospitality and restaurant businesses".

 

Currently operating over 560 hotels under various brands, including Anantara, Avani, NH Collection, and Four Seasons, across 58 countries, alongside nearly 2,700 restaurant outlets in 24 countries, MINT is set for its next phase of growth.

 

(from left) Dillip Rajakarier and William Ellwood Heinecke

 

The company anticipates further momentum from Thailand's increased visibility due to The White Lotus Season 3, and strategic hotel launches planned in Singapore, Japan, and Saudi Arabia.

 

“The ‘White Lotus’ series has repositioned Thailand as a high-end tourist destination. Demand has already surged, with increased interest in filming locations and a desire to experience the luxury showcased.  In Samui, we've seen a 40% increase in average daily rate (ADR), and anticipate continued growth, solidifying Thailand's shift away from a solely budget-travel image," Rajakarier said.