MINT's investment in NH Hotel Group, together with its sale and leaseback of three Tivoli hotels in Portugal, validate MINT's timely strategic initiatives of: (i) acquiring intrinsically strong and growing business at a highly attractive price, and (ii) simultaneously realizing MINT's tangible asset value through asset rotation strategy, taking advantage of Europe's low interest rate and high liquidity environment. Due to such strategic initiatives, MINT was able to overcome external challenges, namely global uncertainties arising from the US-China trade war, continued appreciation of the Thai Baht and subdued domestic consumption demand. As a result, MINT delivered third quarter financial performance that surpassed its Thai and regional peer group.
Operationally, Minor Hotels achieved strong performance with 86% core net profit growth to Baht 1,212 million in 3Q19 compared to net profit of Baht 651 million in 3Q18, driven by strong contribution from NH Hotel Group and significant improvement of Anantara Vacation Club. Minor Hotels continues to strengthen its global platform, which today spans from Australia, Asia, the Middle East, Europe and the Americas. Minor Hotels' integration with NH Hotel Group is well underway and is already delivering strong benefits to the group. For example, the hotel portfolios in Portugal and Brazil have been transferred to NH Hotel Group's management since the third quarter of this year, in order to capitalize on NH Hotel Group's strong European and Latin American operating platform. Similarly, by drawing on NH Hotel Group's strong relationships with property owners and investors across Europe and marrying this with the strength of the Anantara brand, Minor Hotels achieved the launch of the first Anantara in Spain in July 2019 in Marbella and has recently announced plans for the first Anantara in Dublin, Ireland.
Minor Food continued its recent soft performance, reporting core net profit of Baht 207 million in 3Q19 compared to net profit of Baht 350 million in 3Q18 on the back of negative same-store-sales growth, primarily as a result of adverse asymmetric demand vs. supply growth for the Thai restaurant sector. Notwithstanding this, Minor Food is using the opportunity to refresh its food offerings, invest in its infrastructure, and identify new growth opportunity to take advantage of synergy from its current advantageous economies of scale both in Thailand and internationally.
Overall, MINT reiterates its confidence in full-year 2019 performance and its long-term growth prospects, supported by its business and geographical diversification. MINT and NH Hotel Group continue to work together to realize further synergies between the two businesses and believe that there remains huge untapped potential to be unlocked in their collaboration. Thailand tourist arrivals are already seeing signs of recovery, while Minor Hotels expects to be able to recognize real estate sales in the fourth quarter. With increasing focus on delivery, technology and new growth opportunity, Minor Food sales should gradually strengthen.
MINT further reiterates its commitment to strengthen its balance sheet by taking advantage of highly liquid THB and USD debt capital markets and MINT's strong issuer reputation, including: (i) the refinancing of NH acquisition bridge loans, now with the lengthened maturity of over 6 years, and (ii) continued support on MINT's existing perpetual bonds, with recent favorable account treatment being validated by The Federation of Accounting Professions for at least until the end of 2022. In addition, MINT applied proceeds from the sales-and-lease back of the three properties in Portugal to repay a portion of its debt, while the gain on the transaction has also increased its equity base, resulting in MINT's latest debt-to-equity ratio of 1.35x as at end of 3Q19, now within the band of MINT's internal policy target as MINT management team previously guided to its stakeholders.
About Minor International: Minor International (MINT) is a global company focused on three core businesses: hospitality, restaurants and lifestyle brands distribution. MINT is a hotel owner, operator and investor with a portfolio of 529 hotels under the Anantara, AVANI, Oaks, Tivoli, NH Collection, NH Hotels, nhow, Elewana, Marriott, Four Seasons, St. Regis, Radisson Blu and Minor International brands in 55 countries across Asia Pacific, the Middle East, Africa, the Indian Ocean, Europe, South and North America. MINT is also one of Asia's largest restaurant companies with over 2,200 outlets system-wide in 26 countries under The Pizza Company, Swensen's, Sizzler, Dairy Queen, Burger King, Thai Express, The Coffee Club, Riverside and Benihana brands. MINT is one of Thailand's largest distributors of lifestyle brands and contract manufacturers. Its brands include Anello, Bodum, Bossini, Brooks Brothers, Charles & Keith, Esprit, Etam, Joseph Joseph, OVS, Radley, Scomadi, Zwilling J.A. Henckels and Minor Smart Kids. For more information, please visit www.minor.com.