Minor Hotels’ remarkable global expansion

In October 2018, Minor Hotels made a transformative leap into the global hospitality landscape with the €2.3 billion ($2 billion at the time) acquisition of Madrid-based NH Hotel Group. This ambitious move added 385 upscale and luxury properties across Europe to Minor’s portfolio and cemented its position as a significant player in the international market. However, by early 2020, the timing of this bold investment appeared challenging as the COVID-19 pandemic triggered worldwide travel bans and lockdowns, causing a severe downturn in tourism. Minor Hotels faced losses exceeding $1 billion over 2020 and 2021, with its stock value halving in just three months.

Despite these obstacles, Minor Hotels emerged stronger, demonstrating resilience and strategic foresight. Two years after the easing of travel restrictions, the company has capitalised on the rebound in global tourism. In 2023, its net profit tripled, driven by a 22 per cent surge in revenue. The company anticipates robust growth, projecting annual increases of 17 per cent in net profit and nine per cent in revenue through to 2026.

Minor Hotels now operates 561 properties with over 81,000 rooms across 56 countries, including eight in-house brands and partnerships with global names such as Four Seasons, St. Regis, and JW Marriott. The acquisition of NH Hotels was a pivotal moment, doubling Minor’s size and bringing iconic properties in European cities such as Amsterdam and Milan into its portfolio. Many of these properties, housed in former palaces and historic landmarks, are being rebranded under the company’s luxury Anantara and Avani brands, showcasing its commitment to creating unique guest experiences.

The future looks equally ambitious. By the end of 2026, Minor Hotels plans to expand to 750 properties with 120,000 rooms, focusing on growth in Asia, Africa, and the Americas. Key initiatives include bolstering its presence in China, increasing its footprint in India from two to 50 properties within a decade, and launching its first hotel in Singapore—a 200-key luxury Avani property—by 2027. In Thailand, the government’s forecast of 37 million international arrivals in 2024 underscores the ongoing recovery, with Minor Hotels contributing to the country’s appeal through its 114 projects in the pipeline.

To sustain this growth, Minor Hotels is transitioning to an asset-light model, aiming to halve its $7.4 billion debt (as of September 2023) by launching a $1.5 billion real estate investment trust within 18 months. This strategy will free up $700 million to fund expansion while reducing the capital burden of property ownership. Additionally, falling interest rates are expected to ease financial pressures further.

The remarkable growth of Minor Hotels is inseparable from the vision and leadership of its Founder and Chairman, William Heinecke. A US-born naturalised Thai citizen, Heinecke named the company “Minor” in his teenage years to reflect his youthful ambitions. Over the decades, he has been the driving force behind its global expansion, guiding it from a regional player to a major international brand.

Although Heinecke stepped down as CEO nearly five years ago, his influence remains pivotal. The NH Hotel acquisition in 2018 was a calculated risk that transformed Minor Hotels into a global hospitality giant. His leadership has also shaped the company’s luxury brands, such as Anantara and Avani, elevating Minor Hotels’ reputation in the industry.

Heinecke’s commitment to innovation is evident in his embrace of opportunities in challenging times. During the pandemic, he spearheaded efforts to conserve cash, sell non-core assets, and ensure the company’s survival. With an estimated fortune of $1.4 billion, Heinecke remains deeply invested in Minor Hotels, and his long-term vision continues to shape its strategy.

His contributions extend beyond the boardroom, with Minor Hotels’ properties receiving international attention through pop culture hits like HBO’s White Lotus and the film Mother of the Bride, in which Heinecke even made a cameo. As Minor Hotels moves forward, Heinecke’s bold decisions and forward-thinking strategies have laid the foundation for the company to become one of the world’s leading hospitality firms.