The CEO of Minor Hotels has ambitious plans to fill the gaps in the portfolio.

The NH Collection mini-hotel by Minor. Minor International operates 540 hotels and aims to increase this number by about one third by 2026.“Over the next three years, our strategy is focused on expanding horizons.”— said Dilliip Rajakariar, CEO of Minor International and Minor Hotels.“We plan to add over 200 real estate properties in various regions, especially in India. We also intend to open about 40 hotels in Northern Europe.”

In a conversation with Rajakariar, conducted by Skift, the details of this growth strategy were discussed. Minor, the tenth largest hotel operator in the world with its headquarters in Bangkok, is actively introducing its European brands, such as NH Hotels, into Asian markets.“Our deal to acquire NH, a brand originating from Spain, for $2.9 billion in 2018, is an excellent model.”— noted the CEO.“We took a niche European brand and since then have introduced it to the Asia-Pacific region, where it has become popular. Now we are launching it in the Middle East and beyond.”

In recent years, Minor Hotels has gradually shifted its focus towards more expensive and luxury brands. Last week, their premium establishments received 22 awards at the Travel + Leisure Luxury Awards Asia Pacific 2024 ceremony.

Mergers and acquisitions

In response to a question about mergers and acquisitions, Rajakariar emphasized that the company is open to the possibility of acquisitions if it aligns with their strategic goals.“Wherever we find a gap in the portfolio or in the market, we will try to fill it.”— he added.“In India, we have a significant gap in our portfolio.” He also noted the need to open new hotels in the USA.

According to sources from Minor International, the company considered the possibility of acquiring a hotel chain in India this spring, with Lemon Tree Hotels being on the shortlist.

“To be honest, we don’t have anything specific at the moment.”— said Rajakariyer.“We continue to explore various options.

Acquisition of portfolios

Regarding the acquisition of portfolios that include not only brands but also real estate, Rajakariar explained:“Our current focus is on growth, not viewing assets as predominantly light or heavy, but based on the principle of ‘the right assets’.”

Minor Hotels follows an approach“owner's mindset”A significant part of their portfolio is owned or leased. Their strategy focuses on creating value for owners, not just on collecting fees. Adapting brands to local conditions is a key aspect that helps the company attract investors and hotel owners.“We are more flexible regarding brand standards than large hotel groups, and our teams are more responsive.”— he added.

Unique offer

The CEO noted that his hotel group stands out in the market by offering a comprehensive solution for owners and managing all aspects of operations, including food and beverage, wellness, and real estate.He claimed that their company avoids cost-cutting measures that could negatively impact the guest experience, instead focusing on revenue growth and quality of profit.

Medical and wellness tourism

The topics of medical and wellness tourism are areas in which the company believes it is particularly successful.This month, Minor Hotels announced the Layan Life by Anantara concept, which blends modern medical technologies with ancient Thai healing traditions.A new property in their Anantara Layan Phuket resort complex is set to open later this year in Thailand.

“Our focus is always on increasing revenue and high-quality profits, which should ultimately reflect for the owners.”— Rajakariyer noticed.“We want to become the most profitable hotel brand in the world, providing the best experience for our guests.”

Hotel sector index

In this context, it is important to understand the situation with hotel sector stocks and short-term rentals within the ST200 index. This index includes companies that are publicly traded on global markets and covers various segments, including international and regional hotel brands, real estate investment trusts (REITs) for hotels, and management companies.

The Skift Travel 200 index combines the financial performance of nearly 200 travel companies with a total market capitalization of over a trillion dollars, allowing for the tracking of trends in the hotel sector and short-term rentals.The complete methodology of the index is available on the Skift.com website, where you can also find the latest news in the tourism sector and research on the hospitality, aviation, and travel industries.