The Minor Hotel Group Co. Ltd., the hospitality division of Minor International PLC, has recently set aside its budget for investment. The budget, totalling at US$100M, is set for the development of six new hotels by 2020, most of which are located in the Asia-Pacific region, save one. The group has also expressed investing in hotels Yangon Burma, provided the situation becomes more favourable. According to CEO Dillip Rajakarier, these developments will boost the group’s total annual revenue by 20%. The six developments are as follows:
- Avani Khao Lak in Thailand;
- Oaks Bodhgaya in India;
- Anantara Quy Nhon in Vietnam;
- Anantara Desaru in Malaysia;
- Anantari Ubud in Bali, Indonesia, and;
- Elewana Warangi, in Tanzania.
The six developments will combine to a total of 625 rooms. Additionally, the Minor Hotel Group is also set to sign contracts, which will have it handle the management of 25 hotels across the world, comprising 5,964 rooms.
The group will also be spending approximately US$270M for the development of two luxury residential projects in Thailand, which, if the developments remain on schedule, will open next year. The construction for the two projects are currently well underway, they are as follows:
- Avadina Hills by Anantara in Phuket, which received around US$180M, and;
- Anantara Vacation Club Mai Khao Phase III, which received the rest.
Rajakarier has added that the group has plans for expanding in the Asia-Pacific region, but has refused to elaborate on account of the fact that the group is currently studying their options. He did, however, say that the group is primarily aimed at locations near Thailand, which they considered a major hub in the ASEAN region. The group has expressed interest in hotels Yangon Burma, but added that they are waiting for land prices in the country to stabilize, so the company is on standby with that particular endeavour for the time being. He does, however, state that the company will be looking towards any potential business opportunity, including, but not limited to management agreements and joint ventures.
According to Mr. Rajakarier, the investment budget that Minor has set aside would be coming from company cash holdings as well as commercial bank loans. He says that, once the investment is completed at 2020, the group’s portfolio will increase, from 154 hotels and resorts across 21 countries, to over 250 across 32 countries, which will increase the company’s revenues at 2021 to 200% from this year.
He says that all these investments were aimed at managing corporate risks, and balancing the group’s portfolio, which he notes is particularly important when some countries experience slowdown with their tourism.