Thai hospitality giant Minor International targets 20% revenue growth in 2023

BANGKOK (Reuters) - Thailand-based hotelier Minor International is targeting revenue growth of at least 20% this year, its chief executive said on Thursday, banking on a strategy of higher room rates and the return of Chinese tourists.

"Let's not go for occupancy because flight capacity was limited. Let's go for rates," Dillip Rajakarier told reporters at a news conference, referring to the company's preferred strategy last year.

Rates at hotels in the Maldives, Australia and Thailand last year rose 15% to 40% higher than pre-pandemic levels and helped to offset higher labour and interest rate costs, Rajakarier said.

Minor, which owns Spain's NH Hotel Group, generates more than half its hotel revenue in Europe, about 15% in Thailand and the remainder across the Middle East, the Americas and Australia.

"Europe has recovered very strongly ... and the tail winds are coming from China," he said, adding the company is targeting double-digit revenue growth over the next three years.

Spending by Chinese tourists before the pandemic was around $255 billion a year globally. That virtually ground to a halt during the pandemic, but is expected to rebound after China this month relaxed its travel restrictions.

Minor has ample liquidity, with 50 billion baht ($1.52 billion) in cash and unutilised credit facilities, and will next month offer perpetual bonds worth up to 11 billion baht to service debt, Rajakarier said.

($1 = 33.0000 baht)

(Reporting by Chayut Setboonsarng; Editing by Kanupriya Kapoor)