[BANGKOK] Thailand’s flagging tourism sector, weighed down by a sharp drop in Chinese tourist arrivals, is hurting local hotel operators but the country’s hospitality giant Minor International (Mint) is finding some shelter in its European footprint.
Dillip Rajakarier, chief executive of Minor Hotels (Minor) and group CEO of Mint, said that there has been a rise in luxury travel from other parts of Asia and Europe.
“A growing trend we are observing is regional travel – Asia for Asia and Europe for Europe,” he told The Business Times.
“This trend plays to Minor’s strengths as our portfolio is concentrated in Europe and Asia, and we can benefit from travellers sticking within their region,” he added.
Bangkok-based Mint, listed on the Stock Exchange of Thailand (SET), was started by American entrepreneur William Heinecke. Minor Hotels is the hospitality arm of Mint, which is also involved in food and retail businesses.
In 2018, Mint acquired a 94.1 per cent stake in Minor Hotels Europe and Americas (MHEA), then known as NH Hotel Group – a Spanish chain and Europe’s sixth-largest hotel operator – for 2.3 billion euros (S$3.4 billion), beating out Hyatt Hotels in the process.
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The buyout more than doubled Minor’s global portfolio and significantly diversified its regional exposure. The group retained the NH brand name to leverage its strong market recognition across Europe and the Americas.
The acquisition saw Mint’s long-term debt surge from 50 billion baht in 2017 to 127 billion baht in 2018, peaking at 132 billion baht during the height of the Covid-19 pandemic in 2021, before easing to 93 billion baht in 2024.
But debt aside, the deal diversified the group’s risk beyond Thailand and the Asia-Pacific region. “The diversification allows Mint to mitigate regional risks and capitalise on cross-market opportunities,” said Kalvalee Thongsomaung, an equity research analyst at Bualuang Securities.
She noted that the group has introduced its Anantara brand in Europe, NH Hotels in parts of Asia and the United Arab Emirates (UAE), and Avani in the UAE.
The group has focused on an asset-light strategy in the post-Covid period, concentrating on growing its hotel management contracts and fewer wholly owned hotels. Of its 562 properties, 193 are under management contracts using Minor’s various brand names including Anantara, Avanti, Elewana Collection, NH, Oaks and Tivoli.
“The company’s shift towards an asset-light model and a focus on deleveraging – aiming to reduce its net interest-bearing debt to equity ratio to 0.75x by year-end – further bolster its investment appeal,” said Kalvalee.
Mint reported a core profit of 50 million baht (S$2 million) in the first quarter of 2025, compared with a loss of 352 million baht in the same quarter last year, but down from a 2.9 billion baht profit in the fourth quarter of 2024. This also marked the group’s first Q1 core profit since acquiring MHEA.
“Of the three major hotel stocks – Mint, Centel (Central Plaza Hotel) and The Erawan Group – we like Minor the most because 70 per cent of (its) revenue is coming from Europe,” said Naphat Chantaraserekul, the head of research at CLSA/Thailand.
Europe accounted for 56 per cent of Mint’s revenue in Q1 2025, but this is expected to go up in the next two quarters during the region’s high season.
Mint’s stock has yet to mirror analysts’ confidence, falling about 13 per cent year to date. While this reflects broader concerns over Thailand’s tourism recovery, political uncertainty, and global headwinds, the counter has still outperformed the tourism sector and the broader SET index.
Room for hope in Thai operations
Thailand, where Minor began with the purchase of Royal Garden Resort Pattaya in 1978, still plays a crucial role in the group’s revenue picture.
“Our hotels in Thailand delivered a strong 10 per cent revenue increase in the first quarter of 2025, outperforming other regions,” said Rajakarier.
Thailand currently accounts for 7 per cent of Minor’s portfolio of 562 properties. Thailand accounted for 13 per cent of Minor Hotels’ total system sales in Q1 2025, the company indicated in a statement.
Minor’s hotels in southern Thailand enjoyed a boost from the third season of The White Lotus, a US-made series featuring the frolics and follies of very wealthy people on their vacations that was mainly filmed at four properties operated by Minor.
“The White Lotus has been a game changer for our properties in Koh Samui and Phuket, driving a significant increase in bookings and room rates,” said Rajakarier. “We expect the impact to grow as more international travellers, particularly from the US, plan trips in the coming months.”
That is rare optimism amid Thailand’s flagging tourism sector, which is now expected to attract just 34 million to 35 million visitors, down from the initial government target of 38 million.
Between January and May, this year, Thailand attracted 14.4 million foreign tourists, a drop of 2.7 per cent year-on-year, mainly dragged down by a 33 per cent decline in Chinese tourists.
KResearch has forecast that tourist arrivals will reach 34.5 million this year, down from 35.5 million in 2024, and well below the 40 million peak in 2019, the year before the Covid-19 pandemic.
The Chinese market, which accounted for 6.7 million arrivals last year, has been adversely affected by security concerns after a popular Chinese actor was kidnapped and taken to a scam centre in neighbouring Myanmar in early 2025.
Analysts noted that Chinese guests account for less than 5 per cent of Minor’s guests in Asian locations, and 2 per cent in NH hotels in Europe.
Wellness destination
Another trend that Minor and other luxury hotels stands to benefit from is a growing interest in “experience” travel, and away from shopping.
“What we are seeing in Thailand is consistent with global trends, where spending is shifting from material to experience-based luxury. Guests are increasingly seeking wellness, fine dining and unique experiences rather than shopping,” Rajakarier said.
It might help that wellness was one of the main themes in The White Lotus. “The show amplified Thailand’s appeal, especially as a wellness destination. We continue to see more guests choose Thailand as a wellness destination,” he added.
