Thailand’s Minor Hotel Group reports 38% net profit growth in 2015

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Thailand-based Minor Hotel Group (MHG) has reported a 38% year-on-year increase in net profit for 2015.

The increase in net profit is largely attributable to the improved performance of Oaks Hotels & Resorts, a strong increase in real estate income and revaluation gains of Baht 670 million from business acquisitions relating to the Sun International and Oaks Elan Darwin transactions.

Excluding the revaluation gains, 2015 net profit for MHG increased by 16% year-on-year.

Real estate income was boosted by strong sales of The Residences by Anantara Layan Phuket, which saw robust interest from both domestic and international buyers and drove revenue from the group’s real estate business 30% higher than in 2014.

Additionally, overall RevPAR of the hotel portfolio (excluding Oaks) organically increased by 10% in 2015, reflecting strong underlying hotel performance.

Oaks’ strong performance in 2015 was largely due to effective cost controls at both operating and financial levels.

During 2015 MHG also achieved a number of key milestones. MHG acquired seven hotels from Tivoli Hotels and Resorts in Portugal and Brazil, before completing the transaction with the acquisition of the remaining seven hotels in Portugal earlier this month. The combined 14-hotel, EUR 294.2 million Tivoli transaction is highly attractive with a 9.6x EV/EBITDA multiple underpinned by well-located real estate, a strong brand value and a highly loyal customer base. In addition, this largest-ever acquisition by the group marked its strategic entry into Europe and Latin America with a strong operating platform to drive further growth.

MHG also acquired six properties and a tour operating company from Cheli & Peacock. The camps and lodges in Kenya have joined the group’s Elewana portfolio in East Africa.

Oaks made its brand debut in Australian Northern Territory with the acquisition of Elan Soho Suites, which was later renamed Oaks Elan Darwin.

In addition, two new-build Anantara resorts opened – Banana Island Resort Doha by Anantara in Qatar in January and Anantara Peace Haven Tangalle Resort in Sri Lanka in December. A third Anantara was added with the re-flagging of the MHG-owned Four Seasons Bangkok to Anantara Siam Bangkok, the property becoming the brand’s flagship in Thailand.

MHG’s Avani brand also added Avani Seychelles Barbarons Resort in the Indian Ocean.

Overall in 2015 MHG added a total of 17 properties to its growing portfolio and expanded its footprint into four new countries – Qatar, the Seychelles, Portugal and Brazil.

MHG invests in new-build $ 41.4 Anantara Resort in Ubud, Bali

Thailand’s Minor Hotel Group (MHG) has formed a 50/50 joint venture with Indonesia-based PT Wijaya Karya Realty on an US$ 41.4 million development of an Anantara resort in Ubud, Bali.

Scheduled to open in 2019, the new-build Anantara Ubud will offer a total of 70 keys including suites and pool villas, several restaurants, a bar and pool lounge, meeting facilities, a gym and a spa.

In addition 30 Anantara branded residences will be developed within the resort.

Bali is one of South East Asia’s key tourism destinations, with tourist arrivals growing annually over the past decade. The popular town of Ubud is located in the island’s uplands and is well known as the centre of Balinese culture and home to many of the region’s artisans. The surrounding rainforest and terraced rice paddies, dotted with Hindu temples and shrines, are among Bali’s most iconic landscapes.

Dillip Rajakarier, CEO of Minor Hotel Group, said, “We are confident in the longevity of the island as a hugely popular tourism destination and the addition of Anantara Ubud will perfectly complement our existing resorts. We are looking forward to working closely with PT Wijaya Karya Realty going forward during the development of this new resort.”

MHG operates two Anantara resorts in Bali – Anantara Seminyak and Anantara Uluwatu – and an Anantara Vacation Club property. In addition there are currently two further properties under development which will see the debut of MHG’s Avani and Oaks brands to the island.