Minor Hotels’ CEO has ambitious plans to fill gaps in its portfolio

Minor International operates 540 hotels and plans to increase this number by approximately one-third by 2026.

“Our strategy for the next three years is to expand our horizons,” said Dillip Rajakarier, CEO of Minor International and Minor Hotels. “Our target is to add over 200 properties across geographies, especially in India. We are planning about 40 in Northern Europe.”

Skift spoke to Rajakarier to find out more.

Development strategy

Bangkok-based Minor, the world’s tenth largest hotel group, is bringing its European brands such as NH Hotels to Asia.

• “Our acquisition ($2.9 billion) of the Dutch brand NH in 2018 is a fantastic model,” the CEO said. “We took a niche European brand and have since introduced it to the Asia-Pacific region, where it is popular. We are bringing it to the Middle East and beyond.”

• Over the last few years, Minor Hotels around the world have been changing their offer towards exclusive and luxury brands. Last week, its luxury properties won 22 accolades at the Travel + Leisure Luxury Awards Asia Pacific 2024.

Mergers and acquisitions

Minor Hotels is open to opportunistic acquisitions that align with its strategic goals, the CEO said.

• “Wherever we could find a gap in the market and in our portfolio, we would try to fill it,” Rajakarier said.

• “We have a big gap in our portfolio in India,” he said. “We need to create more hotels there. The United States is another loophole.

• “Honestly, we don’t have anything specific to tell you,” Rajakarier said. “We are exploring several options. … Of course, we talked to many owners in different locations about our expansion plan, not only in India. If you look at Minor’s history, we have always been very opportunistic in all the acquisitions we have made.”

Is Minor open to acquiring a portfolio that may include real estate assets rather than just brands?

The story continues

Owner-centric approach

• Local adaptation of brands is a key way the company tries to compete in attracting investors and hotel owners. “We are more flexible with brand standards than the major hotel groups, and our teams are more responsive,” he said.

• The CEO said his hotel group differentiates itself in the market by providing holistic solutions to owners and managing all aspects of the business, including food and beverage, wellness and housing. He argued that his company avoids cost cutting that hurts guest satisfaction, instead focusing on revenue growth and earnings quality.

• Medical and wellness tourism are topics in which the company feels particularly talented. This month, Minor Hotels announced Layan Life by Anantara, a new concept “blending modern medical technologies with ancient Thai healing traditions.” The newly built Anantara Layan Phuket Resort property will open later this year in Thailand.

• “We have always focused on generating the highest revenues and high-quality profits that translate into the bottom line in the form of owner profit,” Rajakarier said. “We want to be the most profitable hotel brand in the world that provides the best guest experiences.”

Performance of the accommodation sector stock index over the year

What am I looking at? Quotations of companies from the hotel and short-term rental industry in ST200. The index covers companies listed on global markets, including international and regional hotel brands, hotel REITs, hotel management companies, alternative accommodations and timeshare companies.

Skift Travel 200 (ST200) combines the financial results of nearly 200 travel agencies worth over a trillion dollars into one number. See more results from the hotel and short-term rental financial sector.

Read the full Skift Travel 200 methodology.

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