Bangkok-based Minor International, a global hotel owner and brand operator, is planning to launch a real estate investment trust in 2025.
In an interview on BNN Bloomberg, Minor’s chairman Bill Heinecke said the company’s plan to float a REIT would halve its liabilities, which stood at 255 billion Thai baht ($7.3 billion) as of the end of September.
When asked for further comment, Minor International confirmed that the company is considering a REIT.
“At this stage, there is no official press release from our side, as we are still in the very early stages of the process. The only information we can disclose at this time is included in our [third quarter] 2024 results presentation,” said Kantee Payomhom, senior investor relations analyst at Minor International.
Minor International's division Minor Hotels has eight brands and more than 550 hotels and 81,400 rooms. Its hotel brands include NH Hotels & Resorts, Anantara Hotels & Resorts, Nhow Hotels & Resorts and Tivoli Hotels & Resorts. It also has a restaurants business.
In its home base of Thailand, Minor has 5,865 hotel rooms, or 7% of its global portfolio, with the remaining 93% consisting of 75,565 rooms in 56 other countries.
There was no hint as to which of Minor's hotels or brands would be moved to the REIT.
In the third quarter, the firm stated “core revenue increased by 5% year on year to [approximately] 42 billion Thai baht. This growth was primarily driven by sustained momentum in its hotel portfolio, with notable revenue per available room and average daily rate gains in Europe during its high season and in Thailand despite the rainy season.”
Minor said that in 2025 it is focused on reducing leverage and strengthening financial stability.
“In [the fourth quarter 2024], we are targeting further debt repayments using cash flows generated over recent quarters, ensuring that, even amidst currency fluctuations, our interest-bearing debt levels continue to decline,” the earnings statement said. “This disciplined approach provides us with the flexibility to invest strategically in property upgrades, residential inventory, new restaurant openings and high-return partnerships, all of which support our long-term growth trajectory.”
At the end of 2023, Minor International had a market capitalization of 165 billion Thai baht and a total asset value of 359 billion Thai baht, according to the company's investor relations website.