The Spanish group has shown "the first signs of formalizing" the integration of Minor International. A total of twelve establishments spread throughout Portugal and Brazil are now under the control of NH Hotel Group.
After being bought by Minor Hotel Group in the last quarter 2018, the time has come for consolidation. First of all, the transaction concerns three long-term leases (20 years) between Invesco and NH Hotel Group for the rental and operation of three facilities in the two Portuguese-speaking countries. Minor has agreed to sell these three assets, namely Tivoli Avenida Liberdade (285 rooms), Avani Avenida Liberdade (119 rooms) and Tivoli Oriente (279 rooms), to Invesco Real Estate in order to transfer their management to NH Group in a long-term sustainable lease agreement. In addition, nine other hotels in Portugal have resulted in nine management contracts with Minor International for pure management.
Earlier in the year, Minor Hotels and NH Hotel Group signed an agreement to operate Villa Padierna Palace in Marbella (Espagne), owned by the Villa Padierna group. It will be managed by the Spanish group and will rebranded to Minor Hotels’ core luxury brand Anantara Hotels, Resorts & Spas in the coming months.
Minor International's properties, in addition to being renowned, will also join the NH Group's loyalty program, as announced in January. This consolidation is also expected to boost the Group's EBITDA by €13 million.
This announcement comes within the positive context of good growth for the hotelier in the second quarter following a very positive 2019. The company reported overall revenue growth of 4.6 percent to €822 million in the first half of 2019. The group confirmed "significant growth in the main profit headings and financial metrics" and the integration of Minor beginning to materialize with the first operating agreements and the arrival of the Anantara brand in Spain.
Ramón Aragonés, CEO NH Hotel Group, comments on these results:
The strong start to the year continued throughout the second quarter of 2019, which was characterised by stronger revenue growth on the back of a higher ADR which, coupled with control cost, drove healthy cash flow generation while maintaining low debt level. In parallel, the integration and joint plans with Minor International have been progressing as expected and are showing the first signs of materialisation in the form of the agreements announced during the first half for the operations of Minor Hotels' establishments in Portugal and Brazil and the introduction of the Anantara Hotels, Resorts & Spas brand in Spain, to be operated by NH Hotel Group.
As of January 1, 2019, NH Hotel Group operates 350 hotels for 54,104 rooms, according to data from Hospitality ON.
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