Minor Hotels Boosted by Maldives as Thailand Growth Slows and Europe Posts Loss
A strong showing in the Maldives gave Minor just enough to break its Q1 losing streak.
Minor International posted a core profit of THB 50 million (about $1.5 million) in the first quarter of 2025, its first for the period since acquiring NH Hotel Group in 2018.
The result was buoyed by strong performance in the Maldives even as it faced slowing growth in Thailand and continued losses in Europe.
Revenue for Minor's core business was down 3% due to a stronger Thai Baht. The company said that revenue would have increased 4% without currency effects. Core EBITDA rose 1%.
Minor Hotels operates over 560 hotels and resorts across six continents under eight brands: Anantara, Avani, Elewana, NH, NH Collection, nhow, Oaks, and Tivoli.
1. Maldives drives the quarter with luxury demand: The Maldives led performance, with revenue per available room [RevPAR] rising 18% year-over-year.
"The average occupancy rate rose significantly to 68% from 49% in the same quarter last year, thanks to effective sales initiatives focused on experiential offerings that attracted guests to the properties," wrote Minor International CFO Chaiyapat Paitoon in the company's earnings release.
Revenue from the island destination was up 5% year-over-year.
2. Europe improves but remains a drag: Despite an 8% rise in RevPAR and 64% occupancy, Minor's European hotels reported a quarterly loss.
Minor attributed the loss to seasonal factors, noting that many European properties operate below breakeven in first quarter.
The company opened NH Collection Alagna Mirtillo Rosso in Italy as part of its asset-light strategy.
3. Thailand slows sharply from last year: Thailand posted RevPAR growth of 10% year-over-year in Q1 2025, a drop from the 25% surge recorded in the same quarter a year earlier.
Despite the slowdown in RevPAR growth, hotel revenue in Thailand increased by 6%.
The revenue growth came even as Minor's equity-owned room count in the country fell 6% year-over-year, and rate increases helped offset foreign exchange pressure and a tough year-over-year comparison.
The company also opened NH Bangkok Asoke during the quarter, a conversion project that marks continued brand expansion for NH in Asia.
4. Australia hit by cyclone and softer demand: Minor's Management Letting Rights (MLR) portfolio in Australia and New Zealand recorded a 6% RevPAR decline, hurt by Cyclone Alfred and a high comparison base in last year's first quarter.
The company opened two new Oaks-branded properties in Geelong, Victoria.
5. Management fee income climbs on new openings: Minor continued to grow its management income with five new hotels added during the quarter, in Italy, Thailand, Tanzania, and Australia.
Management fee income rose 16% year-over-year to just under THB 800 million, accounting for 3% of hotel and mixed-use revenue.
6. Q2 is off to steady start: The company said April RevPAR trends remain positive.
"Positive growth in RevPAR has been recorded for April, particularly across our key markets in Europe (low single-digit growth), Thailand (high single-digit growth), and the Maldives (double-digit growth)," said Paitoon.
Minor International CEO Dillip Rajakarier will appear onstage at Skift Asia Forum this week in Bangkok.
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