As it steps into the new year, Minor Hotels is setting a target of opening more than 200 new hotels across the world in the next three years.
Announcing its commercial strategy for this year and beyond, the Bangkok-based hotel owner and operator said this target would increase its global footprint by around 40% from its existing number of 540 properties while adding over 30,000 rooms to its current inventory of roughly 80,000.
This rapid growth of Minor’s global presence builds on a record financial performance in 2023 and is expected to be advanced through a multi-pronged commercial strategy. The company plans to enhance its brand portfolio and revamp its digital strategy, as well as pursue a more balanced combination of management and franchise operating models.
As part of its long-term asset-light strategy, Minor owns or leases around 70% of a global portfolio of 540 properties. This is projected to drop to 50% as Minor pursues an aggressive combination of management and franchise agreement options. The group is targeting over 150 new management agreements in the next three years that will expand its share of its overall operating model mix from 19% in 2023 to 38% by 2026.
Minor will also focus on franchise agreements while continuing to grow its hotel investment portfolio.
“2023 has been a record year, and the figures —both financial and regarding the group’s expansion— confirm this. Looking ahead, we intend to increase this pace of openings, expanding our brands within our existing areas of operation and growing our global footprint into new regions in which we are not yet present,” said Dillip Rajakarier, group CEO of Minor International and CEO of Minor Hotels.
GEOGRAPHICAL SHIFT
Aiming for a more balanced global distribution of properties, Minor will be shifting its geographical mix. Out of the over 200 openings targeted by 2026-end, half will be in Asia, while Europe and the Middle East will add over 50 properties each.
There will be new openings across Australia & New Zealand, the Americas and Africa.
Minor said this strategy will result in better global balance, with Asia projected to grow from 12% to 23% of global room inventory and the Middle East & Africa from 9% to 16% by 2026. Europe will consist of 45% of room inventory, down from the current 60% due to outsized growth in other regions.
BRAND EXPANSIONS
The Anantara, Avani, Oaks, Tivoli and NH Hotels brands are expected to be the key drivers of portfolio growth over the next three years. Avani alone is projected to more than double its asset count to around 100.
As part of a significant review and optimization of its international brand portfolio, Minor will launch several new brands this year and in 2025 to provide customized options to hotel owners and cater to unmet consumer demands.
“While we will always retain direct ownership of key flagship assets, embracing modern trends, we’re shifting towards an increased focus on management and also franchised contracts. This strategic move is set to organically expand our global footprint while retaining our strict owner-driven mindset across all management categories,” said Ian Di Tullio, chief commercial officer, Minor Hotels.
Following the opening of the Anantara Mina Al Arab Ras Al Khaimah Resort in the U.A.E. earlier this month, Anantara Hotels, Resorts & Spas has several key openings this year. The luxury brand’s upcoming openings include Anantara Palais Hansen Vienna Hotel, Anantara Santorini Abu Dhabi Retreat in the U.A.E., Anantara Ubud Bali Resort in Indonesia and Anantara Jaipur Resort (marking Anantara’s debut in India).
This year, Avani Hotels will open hotels in Amsterdam, Frankfurt and Seychelles. The upper upscale brand will also be debuting in China.
Celebrating its 10th anniversary this year, NH Collection Hotels & Resorts will be growing its global presence with openings in Qatar, Thailand, Finland and Portugal.
NH Hotels & Resorts opened Minor’s first hotels in Paris earlier this year, with more properties scheduled to open in Mexico and China.
While Tivoli Hotels & Resorts will expand in Europe and the Middle East, nhow Hotels will launch its first in Peru with nhow Lima this year and open nhow Rome in Italy.
Elewana Collection, a portfolio of boutique lodges, hotels and camps in Kenya and Tanzania, recently unveiled a new collection of upscale safari lodges — Explorer by Elewana. The first lodge — Serengeti Explorer — will open in March.
Besides hotels, Minor is also focusing on expanding its culinary and non-hotel brands. These include the upcoming 12-key Anantara Kafue River Zambia Tented Camp and the Vietnam-based luxury rail experience, The Vietage by Anantara, which is adding a new route in May.