Minor Hotel Group sees profits rise after Oaks acquisition

Minor Hotel Group sees profits rise after Oaks acquisition

Minor Hotel Group has reported a 38 per cent year-on-year increase in net profit for 2015.

The increase is largely attributable to the improved performance of Oaks Hotels & Resorts, a strong increase in real estate income and revaluation gains of Baht670 million from business acquisitions relating to the Sun International and Oaks Elan Darwin transactions.

Excluding the revaluation gains, 2015 net profit for MHG increased by 16 per cent year-on-year.

MHG achieved these strong results in a period characterised by weak economic conditions, currency fluctuations, political uncertainty and other headwinds including the Bangkok bombing in the third quarter of 2015, demonstrating the benefits of the group’s geographic diversification strategy.

MHG is an owner, operator and investor with a portfolio of 145 hotels, resorts and serviced suites in 22 countries across Asia Pacific, the Middle East, Europe, South America, Africa and the Indian Ocean.

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Oaks’ strong performance in 2015 was largely due to effective cost controls at both operating and financial levels.

Real estate income was boosted by strong sales of The Residences by Anantara Layan Phuket, which saw robust interest from both domestic and international buyers and drove revenue from the group’s real estate business 30 per cent higher than in 2014.

Additionally, overall RevPar of the hotel portfolio (excluding Oaks) organically increased by ten per cent in 2015, reflecting strong underlying hotel performance.

In addition, two new-build Anantara resorts opened – Banana Island Resort Doha by Anantara in Qatar in January and Anantara Peace Haven Tangalle Resort in Sri Lanka in January.

A third Anantara was added with the re-flagging of the MHG-owned Four Seasons Bangkok to Anantara Siam Bangkok, the property becoming the brand’s flagship in Thailand.