Higher Prices Push Thailand RevPAR Above 2019 and Offset Occupancy Decline in Maldives for Minor Hotels
Above, Anantara Siam, Bangkok: RevPAR of Minor Hotels in Thailand surpassed 2019 level in 4Q22 for the first time
By Raini Hamdi, 10 March 2023
Minor International (MINT) reported that RevPAR of its hotels in Thailand in 4Q22 recovered to 2019 level for the first time since the pandemic due to a surge in demand and an increase in room rates.
MINT’s overall hotel portfolio in Thailand chalked up a RevPAR of 3,754 baht ($109) in 4Q22, from 1,250 baht in 4Q21. This was on the back of a jump in occupancy to 65% in 4Q22, versus 29% in 4Q21, and a rise in ADR to 5,736 baht per night in 4Q22, from 4,334 baht in 4Q21.
MINT owns 365 hotels and manages 166 hotels and serviced suites in 56 countries, representing a total of 76,996 rooms. Thailand now accounts for just 7%, or 5,571 rooms, as the Thai-listed company expanded globally through acquisitions that included Spain’s NH Hotel Group in 2018 and Portugal’s Tivoli Hotels in 2016.
The company owns 63% of the Thai roomcount and manages the rest. Outside Thailand, it owns 74% of the 71,425 rooms and manages the rest, with the properties located in other Asian countries, Oceania, Europe, the Americas and Africa. Brands include Anantara, Avani, Oaks, Tivoli, NH Collection, NH, nhow and Elewana Collection.
The performance of its owned and leased hotels (including NH Hotel Group) noted that Thailand RevPAR in December 2022 exceeded pre-pandemic levels by 9%, led by hotels in Bangkok.
The sun Still Shines
In the Maldives, the reopening of other destinations led to a decrease in occupancy. However, an increase in room rates compensated for the decline in occupancy.
“Maldives RevPAR remained above pre-Covid level since third quarter of 2021, outperforming by 22% in 4Q22. This was attributable to higher average room rate from Minor Hotels’ sales efforts. The sequential improvement from the prior quarter was also seen. On a year-on-year basis, Maldives reported a RevPAR decrease of 12% in USD term as a 7% increase in daily room rate partially offset a decrease in occupancy rate.
“The re-opening of other destinations has provided travelers with more choices when compared with the high base of prior year when Maldives was one of few destinations amidst Covid-19,” the company reported.
In 4Q22, systemwide RevPAR of owned and leased hotel portfolio in Europe and Latin America surged 66% year-on-year in Euro term. Average occupancy rate improved to 64% in 4Q22 from strong travel demand, compared with 50% in 4Q21, while room rate was 28% higher, fueling a RevPAR that exceeded 2019 level by 10%.
Southern Europe posted the strongest RevPAR improvement over pre-pandemic level, followed by Latin America and Northern Europe.
RevPAR of owned and leased hotels overall continued to surpass 2019 for the third consecutive quarter, by 21% in 4Q22.
in 4Q22, Minor Hotels reported core net profit of 1.9 billion baht, a 57% increase from 4Q21 and 25% from 3Q22.
MINT’s core net profit (comprising three business units Minor Hotels, Minor Foods and Minor Lifestyle) in 4Q22 was 2.4 billion baht, a 44% increase from 4Q21 and 18% from 3Q22.
For the entire 2022, MINT reported core profit of 2 billion baht, a huge turnaround from the core loss of 9.3 billion baht recorded in 2021. On a reported basis, including non-recurring items, MINT achieved net profit of 1.9 billion baht in 4Q22 and 4.3 billion baht in 2022, compared with net losses of 1.6 billion baht in 4Q21 and 13.2 billion baht in 2021.
The company said 4Q22 marked the return of long-term strategic planning after the pandemic. It has a new and shorter three-year plan for 2022-2025, in which it intends to accelerate growth through its brand strength, high-value asset portfolio and profitable partnerships, while enhancing productivity and effecting digital transformation.
Dillip Rajakarier, group CEO of MINT, said, “We have emphatically returned to growth and MINT is uniquely positioned to capture the exciting opportunities that lie ahead.”