INTERNATIONAL REPORT—Thailand-based hospitality group Minor International (MINT) has reached an agreement to acquire an 8.6% stake valued at $225 million (€192 million) in Spain-based NH Hotel Group in an effort to expand its footprint in Europe.
NH Hotel Group has a portfolio of 382 hotels and resorts with 59,350 keys spanning across 30 countries in Europe, the Americas and Africa.
Its four main clusters—Spain, Benelux, Central Europe and Italy—have been drivers for solid growth. The investment in NH Hotel Group marks a strategic progression given MINT’s current presence in Asia, Australia, the Middle East and Europe.
MINT’s investment in NH is a further move into Europe, following its earlier expansion into Portugal and Brazil through the acquisition of Tivoli Hotels & Resorts in 2016, and one that is complementary to the geographical footprint of MINT’s pre-investment portfolio, according to the company.
Dillip Rajakarier, CEO of Minor Hotels, stated, “This investment represents a significant milestone for Minor Hotels. We are excited by the opportunity to accelerate our global exposure with our investment in NH Hotel Group, which has a highly complementary business and asset portfolio to MINT. The investment is financially attractive, with high liquidity on the Madrid Stock Exchange and proven performance by the business. Over the past few years, NH Hotel Group’s board of directors and management team have re-invigorated the business and delivered strong business performance in line with its five-year strategic plan.”
He added, “As a key shareholder in the business, we look forward to supporting the management team as a strategic shareholder to continue this success and build long-term shareholder value for NH Hotel Group and its shareholders, including MINT. MINT can also support the NH hotels with its food & beverage expertise where appropriate, to maximize financial performance and enhance customer experience.”
No management changes at NH Hotel Group are expected in connection with MINT’s investment in the company.