Minor reports net profit increase of 73% in H1 '16

Nikhil Pereira, August 14th, 2016

Minor Hotels has reported a net profit increase of 73% in H1 ‘16, reflecting its acquisition capabilities as well as the solid operational performance of its existing hotel and residential portfolios, a company statement claimed.

Excluding the non-recurring revaluation contributions of the acquisition of Tivoli Hotels & Resorts in Q1 ‘16 and Sun International hotels portfolio acquisition in Q1 ‘15, Minor’s H1 ‘16 net profit rose by 8% year-on-year.

In H1 ‘16, performance of the group’s Thailand hotels, the consolidation of the newly acquired Tivoli portfolio in Portugal, and residential sales were the principal drivers of the group’s performance.

Occupancy for the Tivoli portfolio in Portugal stood at nearly 70% in Q2 16, as Portugal builds towards the upcoming high season in the third quarter.

With the sale of one unit of the residences by Anantara Layan Phuket in Q2 ‘16, in addition to the two units sold in Q1 ‘16, real estate revenue increased by 18% in H1 ‘16 year-on-year.

Going into the second half of 2016, Minor’s performance is expected to continue to strengthen, the company said.

It is expected that performance of Thailand hotels will continue to be strong, supported by high tourist arrivals.

Tivoli’s Portuguese portfolio will have its high season in the third quarter and Minor will further benefit in H2 ‘16 from its full consolidation of the Royal Livingstone Victoria Falls Zambia Hotel by Anantara and Avani Victoria Falls Resort, due to the effective increase in its shareholding from 50% to 100% in July 2016.

The group also reported that its contemporary upscale brand Avani Hotels & Resorts is experiencing new success with the group having secured management contracts in Khon Kaen, Thailand and Dubai.

The contribution from management fees of these two rebranded hotels will commence in H2 ‘16.

Currently, Minor Hotels has close to 20,000 rooms in operation across 151 properties in 22 countries. Looking forward MH will launch its Anantara brand in Oman with the opening of two new resorts in Q4 ‘16 – Anantara Al Jabal Al Akhdar Resort and Al Baleed Resort Salalah by Anantara.