The target for new hotels would increase the group's global portfolio by almost 40% from its current count of 540 properties, as well as adding more than 30,000 rooms to its present inventory of almost 80,000.
The rapid acceleration of Minor's global growth ambition builds on record financial performance in 2023 and will be driven by a multi-pronged commercial strategy that will see the company enhance its portfolio of brands and overhaul its digital strategy, while pursuing a more balanced mix of management and franchise operating models.
Under its long-standing 'asset right' strategy, Minor Hotels owns or leases almost 70% of its global portfolio of 540 hotels. That percentage is expected to decrease to approximately 50% as the group pursues a more aggressive mix of management and franchise agreement options. Notably, Minor is targeting more than 150 new management agreements over the next three years, which would grow its share of the overall operating model mix from 19% in 2023 to 38% by 2026. New franchise agreements are also being targeted, while Minor will continue to grow its hotel investment portfolio.
Dillip Rajakarier, Group CEO of Minor International and CEO of Minor Hotels, commented: "2023 has been a record year and the figures, both financial and regarding the group's expansion, confirm this. Looking ahead, we intend to increase this pace of openings, expanding our brands within our existing areas of operation and growing our global footprint into new regions in which we are not yet present."
Minor Hotels is also looking to shift its geographic mix, targeting a more balanced global distribution of hotels and resorts. Of the more than 200 openings targeted by the end of 2026, approximately half will be in the Asia region, while Europe and the Middle East are expected to add more than 50 properties each. Other regions, such as Australia & New Zealand, the Americas and Africa, will also see new openings across the Minor Hotels brand portfolio. The strategy will see greater balance globally, with Asia expected to grow from 12% to 23% of global room inventory, and Middle East & Africa from 9% to 16%, by 2026. Europe meanwhile is expected to comprise 45% of room inventory, down from the current 60%, due to outsized growth in other regions.
The Anantara, Avani, Oaks, Tivoli and NH Hotels brands are expected to be the key drivers of portfolio growth over the next three years, with Avani alone expected to more than double its property count to almost 100. As part of a major review and optimisation of its global brand portfolio, Minor Hotels also expects to unveil multiple new brands in 2024 and 2025 to fill unmet consumer demand and provide more tailored options to hotel owners, further enhancing its competitive positioning.
Ian Di Tullio, Chief Commercial Officer of Minor Hotels, said: "We're focused on cross-developing our brands to create a harmonious blend of luxury and accessibility in diverse locations. We're also moving towards a lighter 'asset-right' model. While we will always retain direct ownership of key flagship assets, embracing modern trends we're shifting towards an increased focus on management and also franchised contracts. This strategic move is set to organically expand our global footprint while retaining our strict owner-driven mindset across all management categories."
Having already launched Anantara Mina Al Arab Ras Al Khaimah Resort in the UAE earlier this month, the luxury brand Anantara Hotels, Resorts & Spas will continue its strategic growth during 2024 with key openings including Anantara Palais Hansen Vienna Hotel, further strengthening the brand's European portfolio, Anantara Santorini Abu Dhabi Retreat in the UAE, Anantara Ubud Bali Resort in Indonesia, and Anantara Jaipur Resort, which will represent Anantara's debut in India.
Additions to Avani Hotels & Resorts in 2024 will include properties in Frankfurt, Amsterdam and the Seychelles, in addition to the upper upscale brand's first hotel in China.
NH Collection Hotels & Resorts, which celebrates its 10-year anniversary in 2024, will continue to grow its global footprint with new openings including in Thailand, Qatar, Finland and Portugal, while NH Hotels & Resorts has added Minor Hotels' first properties in Paris this year, with further hotels coming on stream in Mexico and China. Tivoli Hotels & Resorts will continue its accelerated expansion in Europe and the Middle East, while nhow Hotels will debut in Peru in 2024 with nhow Lima and will also add a property in Italy with the launch of nhow Rome.
Elewana Collection, a collection of boutique lodges, camps and hotels in iconic locations across Kenya and Tanzania, recently announced the new Explorer by Elewana collection of upscale safari lodges. The first lodge, Serengeti Explorer, is scheduled to open in March.
Amid this unprecedented growth, Minor Hotels remains committed to its goal of expansion into new experience categories and growing its culinary and non-hotel brands. The forthcoming 12-key Anantara Kafue River Zambia Tented Camp will offer an entirely new luxury experience for guests of Minor Hotels' flagship brand, while Vietnam-based luxury rail experience The Vietage by Anantara is adding a new Quy Nhon - Nha Trang route to its itinerary from May this year.
Source: Minor Hotel Group Limited
