SET-listed Minor International is targeting capital expenditure of 10-12 billion baht a year to reach its goal of 1,000 hotels and 4,500 restaurants by 2029, while banking on a boost to Thai growth thanks to the filming of The White Lotus at its four resorts.
Dillip Rajakarier, group chief executive of Minor, said over 80% of its portfolio would be operated under the asset-light model, including management contracts and franchises, which can produce higher margins than owned properties.
The 10-12 billion baht earmarked for each year is sufficient for expansion into new markets like Japan, said Mr Rajakarier, who is also chief executive of Minor Hotels.
He said the company aims to open 22 hotels in Japan within 10 years under a joint venture agreement with Royal Holdings, the franchisee of Minor's Sizzler brand.
Minor also wants to expand its US properties, where it currently has only one hotel.
Last year the company had 562 hotels and 81,344 rooms operating in 58 countries, including 372 owned hotels and 190 properties under management contracts.
For its food businesses, it had over 2,699 outlets in 23 countries, including 1,400 owned outlets.
Under its three-year plan, Minor aims to add 280 new hotels and 1,500 restaurants, bringing the total to 850 hotels and 4,000 restaurants by 2027.
Mr Rajakarier said the company is targeting profit growth of 15-20% per year, after securing net profit of 7.7 billion baht, up 43% year-on-year in 2024. By 2027, the net interest-bearing debt-to-equity ratio should be reduced to 0.75.
In 2025 alone, 54 hotels will be opened as there are already 100 of them in the pipeline.
Mr Rajakarier said the global travel industry is continuing to grow, while the newly released season of The White Lotus is expected to help reposition Thailand as a high-end tourism destination.
The drama was filmed in Minor's four properties on Samui and in Phuket. In Samui alone, the average daily rate rose by 40% in January this year compared to the same month of 2024.
Mr Rajakarier said the company plans to launch a real-estate investment trust worth US$1.5 billion by the end of this year, which could free up $700 million in cash to use for debt reduction and strengthening its portfolio.
Last year, hotels and mixed-use businesses contributed around 70% to its core profit of 8.4 billion baht, while the remainder was derived from restaurants.
Mr Rajakarier said the hospitality sector was driven by strong revenue per available room (RevPar) amid the global travel recovery.
Hotels in Europe and the Americas reported 9% year-on-year RevPar growth, led by strong average daily room rates, while Thailand's RevPar increased by 17%, thanks to high-spending travellers.
Minor's food businesses reported an 8% increase in total system sales in Thailand, and a 12% increase in system sales in Singapore.
The firm was able to cut its net interest-bearing debt-to-equity ratio to 0.8 last year, from 1.0 in 2023.