Minor Group to use proceeds from new REIT T for debt repayment

Minor Group to use proceeds from new REIT T for debt repayment

Minor International to Leverage Hotel REIT Proceeds for Debt Reduction and Expansion

Thai hospitality giant Minor International, controlled by billionaire William Heinecke, announced plans to raise $1.5 billion through the listing of a hotel real estate investment trust (REIT) in Singapore by early 2026. The proceeds will be used to delever the company's balance sheet and fund its aggressive global expansion strategy, which includes entering new markets and increasing its hotel count to over 1,000 properties by 2030.

The REIT will initially include a portion of Minor's hotel portfolio, aligning with the company's shift toward an asset-light business model. Heinecke, 76, stated that transferring "heavy assets" into the REIT will reduce its ownership stake in certain properties while maintaining a majority share in the trust. This approach follows a broader trend of REITs optimizing capital structures to enhance returns and liquidity.

Minor's debt burden has decreased in recent years, with liabilities falling 9.7% to 93 billion baht ($2.8 billion) in 2024, supported by cost-cutting measures and improved operating performance. The company reported a 44% year-on-year net profit increase to 7.8 billion baht in 2024, driven by higher revenue and reduced finance costs. However, Heinecke emphasized that the REIT will accelerate deleveraging, particularly as interest rates remain elevated and post-pandemic travel demand for luxury accommodations surges.

Expansion plans include the development of the 200-room Avani Hotel in Singapore (opening in 2027), joint ventures in Japan targeting 21 hotels, and 50 new properties in India. The company also aims to strengthen its presence in Europe, where it owns over half of its 600 global hotels through its acquisition of Spain's NH Hotel Group.

Analysts at UBS noted that the REIT could enhance capital efficiency and provide a "re-rating catalyst" for Minor's shares, which closed at 22.9 baht in Bangkok on Oct. 18, 2025. The IPO underscores the growing role of REITs in enabling hospitality firms to balance growth ambitions with financial prudence in a competitive, post-pandemic landscape.