Minor International said Monday it aims to take private its European subsidiary Minor Hotels Europe & Americas, offering about $6.70 (€6.37) a share to delist it from the Madrid Stock Exchange.
What’s at stake: The subsidiary Minor Hotels Europe & Americas has a portfolio of 357 hotels in 38 countries. Minor International bought it in 2018 — at the time, under the NH Hotels Group name — for about $2.4 billion (€2.3 billion).
What’s next? The Thai-based hotel group — which already owns about 96% of the subsidiary — must receive board and regulatory approval to take the entity private by March.
What’s the deal value? Based on Friday’s closing price, Minor would likely have to pay more than $110 million to buy out shareholders. Shares in the subsidiary rose over 34% on Monday. Minor Hotels Europe and America generated about $2 billion in revenue in the first nine months of this year.
Why it matters: The delisting would give Minor International more flexibility in managing its assets and capital. The proposal comes a month after Minor’s chairman Bill Heinecke announced an ambitious growth strategy, planning to expand the parent company from 561 hotels to 750 by the end of 2026.
The NH Backstory
The NH acquisition has been transformative for Minor International:
- The 2018 acquisition nearly doubled Minor’s hotel portfolio overnight.
- The early results of the acquisition look promising for the parent company. Minor’s net profit tripled in 2023 on 22% revenue growth.
- Minor now operates over 560 hotels across 57 countries under brands including NH, Anantara, and Avani.
- Minor International CEO Dillip Rajakarier discussed Minor’s strategy last month at Skift Global Forum East. (See video, below).
Accommodations Sector Stock Index Performance Year-to-Date
What am I looking at? The performance of hotels and short-term rental sector stocks within the ST200. The index includes companies publicly traded across global markets, including international and regional hotel brands, hotel REITs, hotel management companies, alternative accommodations, and timeshares.
The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more hotels and short-term rental financial sector performance.
Read the full methodology behind the Skift Travel 200.
https://youtube.com/watch?v=v7I-UPO8IVU%3Fsi%3D2Sc2s3coB16upAGh
