Minor Hotels Posts 32% Growth, Asset-Right Strategy
Alexandra
Renovations at flagship properties such as Anantara Siam Bangkok Hotel reduced room inventory and forced re-routing of guest transfers, tightening shuttle and taxi capacity and raising ground transport cost-per-trip during peak periods—an operational logistics pressure that influenced yield management and ancillary transport contracts across the portfolio.
Key financial and operational metrics
Minor Hotels recorded a full-year core profit of THB 6.84 billion (≈USD 217 million), an increase of 32% year-on-year. Core revenue remained broadly stable at THB 133.2 billion, while operating expenses eased by roughly 1% year-on-year. Improvements below the operating line—principally lower net finance costs, lease accounting adjustments and favorable foreign exchange movements—were primary drivers of the profit uplift.
| Metric | 2025 | Change YoY |
|---|---|---|
| Core profit | THB 6.84 bn | +32% |
| Core revenue | THB 133.2 bn | ~-1% |
| Total System Sales (TSS) | THB 166.1 bn (THB 140.36 bn LFL) | +4% (3% LFL) |
| Occupancy | 68% | +1 pp |
| ADR | System-wide +3% | — |
| RevPAR | +4% | — |
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Drivers behind the numbers
The group emphasized a shift toward pricing-led growth rather than volume-driven expansion, with system-wide ADR and RevPAR gains suggesting effective revenue management. The company’s “asset-right” approach—preferring management and franchise agreements while keeping a selective ownership footprint—helped preserve margins and supported earnings resilience despite renovation-related room closures.
- Rate-led pricing underpinned RevPAR improvements.
- Cost discipline and lower financing charges improved bottom-line results.
- Renovations constrained supply but improved long-term asset quality.
Regional performance and market mix
Europe and the Americas (EUAM), which represent more than half of the portfolio, delivered double-digit growth in profit contribution and reinforced their role as a stable earnings base. Occupancy in EUAM rose by two percentage points, with ADR +2% and RevPAR +4%, notably strong in Spain and Italy. The Middle East and Africa saw RevPAR grow 10%, driven by luxury segment rate increases, while Asia and the Indian Ocean recorded a 12% RevPAR uplift—driven in part by outstanding performance in the Maldives.
Fourth quarter momentum
Q4 produced particularly strong results: core profit climbed 32% YoY to THB 2.73 billion, supported by peak-season leisure demand and improved operating leverage across resort and urban assets. System-wide occupancy hit 70% in the quarter, ADR rose 4%, and RevPAR expanded 8% YoY.
Development pipeline and strategic initiatives
Minor Hotels entered 2026 with its most substantial development pipeline to date. In 2025 the group signed 40 new hotel projects and master agreements, and opened or rebranded 23 properties. Management anticipates securing another ~25 deals in Q1 2026, reflecting continued owner interest.
- Record pipeline supports asset-light expansion.
- Planned REIT aims to recycle capital from mature assets while preserving operational control.
- Investment in talent via the Asian Institute of Hospitality Management (in association with Les Roches) bolsters workforce supply, with 250 students enrolled in its BBA program.
Risks, opportunities and operational notes
Renovation-driven inventory constraints are a short-term headwind but should enhance long-term positioning and premium pricing power. Geopolitical and macroeconomic uncertainty remains a background risk, while sustained forward bookings and diversified market exposure support a constructive outlook.
From an operational standpoint, tighter ground transport during renovations highlighted the importance of integrated mobility planning—coordinating shuttle fleets, airport transfers and local partner logistics to protect guest experience and ancillary revenue. As the saying goes, “save for a rainy day”—having flexible transport contracts and offsite crew housing proved useful in hotspots like Bangkok and resort islands.
What this means for sailing and boat rentals
Stronger leisure demand and higher ADR at coastal and island resorts generally increase demand for marine services—charter boats, captained transfers, and marina berthing. Owners and operators in yachting and boating can expect firmer enquiry volumes in holiday seasons where Minor Hotels performs well. For GetBoat.com readers, tighter hotel supply at renovated properties can push guests toward alternative shore experiences—day charters, fishing trips, and private sailing excursions become attractive options for travelers seeking space and exclusivity.
On a personal note, I once swapped a delayed hotel transfer for an impromptu half-day sail—sometimes the detours become the highlight of the trip. That little flexibility can mean new revenue streams for captains and marinas when hotels and resorts tighten inventory.
In summary, Minor Hotels’ 2025 performance combined rate-led revenue management, disciplined costs and an asset-right growth model to deliver a 32% rise in core profit. Regional strength in EUAM and rate growth across luxury and island markets powered results, while renovation activity and logistics frictions highlighted the value of coordinated transport and guest mobility solutions. For the wider travel and marine ecosystem—yacht and boat charters, marinas, captains and shore-side activities—these trends often translate into stronger demand for boating, charter and yachting services at destinations, beaches, lakes and gulf harbors, benefitting boating, superyacht and water recreation providers across sea and ocean markets.
