MINOR HOTELS
The Leading Hospitality Partner
Maximizing Shareholder Value
  • Overview of the Hotels
    and Mixed-Use Business
  • Sector Overview
    and Competition
  • Performance Highlights
    and Development Plans

MINT is a leading hotel owner, operator and investor in Thailand and the region, with interests in a variety of related businesses. The Hotels and Mixed-Use Business arm can be divided into the following units:

  1. Hotel Business: MINT currently has 155 hotels and serviced suites with over 19,000 rooms in its portfolio. The hotel business can be divided into four categories:
    1. Owned hotels: Currently, MINT has 40 hotels that are majority-owned, under the following brands:
    2. Anantara Siam Bangkok Hotel Thailand
      Anantara Riverside Bangkok Resort Thailand
      Anantara Hua Hin Resort Thailand
      Anantara Golden Triangle Elephant Camp & Resort Thailand
      Anantara Bophut Koh Samui Resort Thailand
      Anantara Mai Khao Phuket Villas Thailand
      Anantara Layan Phuket Resort Thailand
      Anantara Angkor Resort Cambodia
      Anantara Kihavah Maldives Villas Maldives
      Anantara Vilamoura Algarve Resort Portugal
      Anantara Kalutara Resort Sri Lanka
      Anantara Hoi An Resort Vietnam
      The Royal Livingstone Victoria Falls Zambia Hotel by Anantara Zambia
      AVANI Riverside Bangkok Hotel Thailand
      AVANI Pattaya Resort & Spa Thailand
      AVANI Gaborone Hotel & Casino Botswana
      AVANI Windhoek Hotel & Casino Namibia
      AVANI Avenida Liberdade Lisbon Hotel Portugal
      AVANI Kalutara Resort Sri Lanka
      AVANI Quy Nhon Resort & Spa Vietnam
      AVANI Victoria Falls Resort Zambia
      Oaks Grand Gladstone Hotel Australia
      Oaks Elan Darwin Australia
      The St. Regis Bangkok Thailand
      Four Seasons Resort Chiang Mai Thailand
      Four Seasons Tented Camp Golden Triangle Thailand
      Four Seasons Resort Koh Samui Thailand
      JW Marriott Phuket Resort & Spa Thailand
      Tivoli Mofarrej - Sao Paulo Hetel Brazil
      Tivoli Ecoresort Praia do Forte Bahia Brazil
      Tivoli Avenida Liberdade Lisboa Hotel Portugal
      Tivoli Marina Vilamoura Algarve Resort Portugal
      Tivoli Marina Portimao Algarve Resort Portugal
      Tivoli Carvoeiro Algarve Resort Portugal
      Tivoli Oriente Lisboa hotel Portugal
      Tivoli Palacio de Seteais Sintra Hotel Portugal
      Tivoli Sintra Hotel Portugal
      Tivoli Coimbra Hotel Portugal
      Tivoli Lagos Algarve Resort Portugal
    3. Joint-venture hotels: MINT has 29 joint-venture hotels under the following brands:
    4. Anantara Veli Maldives Resort Maldives
      Anantara Dhigu Maldives Resort Maldives
      Anantara Bazaruto Island Resort Mozambique
      Anantara Medjumbe Island Resort Mozambique
      Anantara Matemo Island Resort Mozambique
      Anantara Peace Haven Tangalle Resort Sri Lanka
      AVANI Lesotho Hotel & Casino Lesotho
      AVANI Maseru Hotel Lesotho
      AVANI Pemba Beach Hotel & Spa Mozambique
      AVANI Bentota Resort & Spa Sri Lanka
      AVANI Hai Phong Harbour View Vietnam
      Oaks Bodhgaya India
      PER AQUUM Niyama Maldives
      AfroChic Diani Beach Kenya
      Sand River Masai Mara Kenya
      Tortilis Camp Amboseli Kenya
      Elsa's Kopje Meru Kenya
      Joy's Camp Shaba Kenya
      Elephant Pepper Camp Masai Mara Kenya
      Arusha Coffee Lodge Tanzania
      Serengeti Migration Camp Tanzania
      Tarangire Treetops Tanzania
      The Manor at Ngorongoro Tanzania
      Kilindi Zanzibar Tanzania
      Serengeti Pioneer Camp Tanzania
      Club Hotel Dolphin Sri Lanka
      Hotel Sigiriya Sri Lanka
      Naladhu Maldives Maldives
      Radisson Blu Hotel & Residence Mozambique
    5. Management hotels: All hotels under management contracts are under MINT's own brands Anantara, AVANI, Oaks, Tivoli, PER AQUUM and Elewana. Currently, there are 34 hotels under MINT's management umbrella.
    6. Anantara Sathorn Bangkok Hotel Thailand
      Anantara Si Kao Resort Thailand
      Anantara Baan Rajprasong Bangkok Serviced Suites Thailand
      Anantara Lawana Koh Samui Resort Thailand
      Anantara Rasananda Koh Phangan Villas Thailand
      Anantara Chiang Mai Resort Thailand
      Anantara Sanya Resort China
      Anantara Xishuangbanna Resort China
      Anantara Seminyak Bali Resort Indonesia
      Anantara Uluwatu Bali Resort Indonesia
      Al Baleed Resort Salalah by Anantara Oman
      Anantara Al Jabal Al Akhdar Resort Oman
      Banana Island Resort Doha by Anantara Qatar
      Desert Islands Resort & Spa by Anantara UAE
      Qasr Al Sarab Desert Resort by Anantara UAE
      Eastern Mangroves Hotel & Spa by Anantara UAE
      Anantara Sir Bani Yas Island Al Sahel Villa Resort UAE
      Anantara Sir Bani Yas Island Al Yamm Villa Resort, UAE
      Anantara The Palm Dubai Resort UAE
      Anantara Mui Ne Resort Vietnam
      AVANI Atrium Bangkok Thailand
      AVANI Khon Kaen Hotel & Convention Centre Thailand
      AVANI Sepang Goldcoast Resort Malaysia
      AVANI Seychelles Barbarons Resort & Spa Seychelles
      AVANI Deira Dubai Hotel UAE
      Oaks Bangkok Sathorn Thailand
      Oaks Liwa Executive Suites UAE
      The Residences at Victoria Portugal
      Souq Waqif Boutque (to be rebranded to Tivoli) Qatar
      Desert Palm PER AQUUM UAE
      Lewa Safari Camp Kenya
      Kitich Camp Matthews Forest Kenya
      Loisaba Tented Camp Kenya
      Loisaba Star Beds Kenya
    7. Management of serviced suites: In 2011 MINT acquired 100% of Oaks Hotels and Resorts Limited ('Oaks'), Oaks is one of the largest hotel and resort operators in Australia, with 52 properties, over 6,300 rooms under management throughout Australia, New Zealand and Dubai
    8. Country Region
      No of properties
      Australia New South Wales
      10
        Victoria
      7
        Queensland
      23
        South Australia
      5
        Western Australia
      2
      New Zealand North Island
      2
        South Island
      2
      UAE Dubai
      1
  1. Spa Business: MINT currently has over 60 spas in leading hotels in 19 countries under the brands Anantara Spa, Mandara Spa, Elemis and Aequalis.
    1. Anantara Mai Khao Phuket Villas Thailand
      Anantara Golden Triangle Elephant Camp & Resort Thailand
      Anantara Hua Hin Resort Thailand
      Anantara Bophut Koh Samui Resort Thailand
      Anantara Lawana Koh Samui Resort Thailand
      Anantara Siam Bangkok Hotel Thailand
      Anantara Riverside Bangkok Resort Thailand
      Anantara Si Kao Resort Thailand
      Anantara Rasananda Koh Phangan Villas Thailand
      Anantara Chiang Mai Resort Thailand
      Anantara Layan Phuket Resort Thailand
      Anantara Sathorn Bangkok Hotel Thailand
      AVANI Riverside Bangkok Hotel Thailand
      AVANI Pattaya Resort & Spa Thailand
      AVANI Khon Kaen Hotel & Convention Centre Thailand
      JW Marriott Phuket Resort & Spa Thailand
      The St. Regis Bangkok Thailand
      Dusit Thani Krabi Beach Resort Thailand
      Royal Orchid Sheraton Hotel & Towers Bangkok Thailand
      Tivoli Mofarrej - Sao Paulo Hotel Brazil
      Anantara Angkor Resort Cambodia
      Anantara Sanya Resort China
      Anantara Xishuangbanna Resort China
      Sheraton Sanya Resort China
      The PuLi Hotel & Spa China
      JW Marriott Hotel Cairo Egypt
      Anantara Seminyak Bali Resort Indonesia
      Anantara Uluwatu Bali Resort Indonesia
      Sheraton Seoul D Cube City Hotel Korea
      AVANI Sepang Goldcoast Resort Malaysia
      Anantara Veli Maldives Resort Maldives
      Anantara Kihavah Maldives Villas Maldives
      Anantara Dhigu Maldives Resort Maldives
      Naladhu Maldives Maldives
      PER AQUUM Niyama Maldives
      Anantara Bazaruto Island Resort Mozambique
      Anantara Medjumbe Island Resort Mozambique
      AVANI Pemba Beach Hotel & Spa Mozambique
      Anantara Al Jabal Al Akhdar Resort Oman
      Al Baleed Resort Salalah by Anantara Oman
      Tivoli Marina Vilamoura Algarve Resort Portugal
      Banana Island Resort Doha By Anantara Qatar
      Souq Waqif Boutque Hotel Qatar
      AVANI Seychelles Barbarons Resort & Spa Seychelles
      Anantara Kalutara Resort Sri Lanka
      Anantara Peace Haven Tangelle Resort Sri Lanka
      Hyatt Regency Dar es Salaam Tanzania
      Meliá Zanzibar Tanzania
      Park Hyatt Zanzibar Tanzania
      Desert Islands Resort & Spa by Anantara UAE
      Qasr Al Sarab Desert Resort by Anantara UAE
      Emirates Palace UAE
      Anantara The Palm Dubai Resort UAE
      Eastern Mangroves Hotel & Spa by Anantara UAE
      Desert Palm PER AQUUM UAE
      Anantara Hoi An Resort Vietnam
      Anantara Mui Ne Resort Vietnam
      AVANI Quy Nhon Resort & Spa Vietnam
      AVANI Hai Phong Harbour View Vietnam
      The Royal Livingstone Victoria Falls Zambia Hotel by Anantara Zambia
  1. Plaza & Entertainment Business: MINT owns and operates 3 shopping plazas adjacent to its hotels to complement their operations. In addition, MINT also runs 7 entertainment outlets in its Royal Garden Plaza in Pattaya.
    1. Plaza
      • Bangkok: The property offers a unique grouping of outstanding restaurants, bars, retails, and services - all under one roof. The plaza is situtated next to two world-class hotels; Anantara Riverside Bangkok Resort and AVANI Riverside Bangkok Hotel.
      • Pattaya: Royal Garden Plaza Pattaya is a 4-storey building located next to AVANI Pattaya Resort and Spa that also includes Ripleys entertainment outlets.
      • Phuket: Located just a short walk from Anantara and JW Marriott Phuket, Turtle Village encompasses over 3,000 sq.m of retail space on two levels.
    2. Entertainment Business : Located in Royal Garden Plaza in Pattaya:
      • Ripley's Believe It or Not! Odditorium.
        present more than 350 exhibits, artifacts, and oddities from around the world.
      • Venture into your worst nightmares. . . Be dazzled with the unimaginable special effects and live actors that will send shivers down your spine from themoment.
      • Experience state-of-the-art technology at the movies like you've  never seen it before! 
      • Let us “WOW” you with this magical attraction designed to ignite your imagination. A 20-minute journey into the Maze will challenge your perception, mesmerize all your senses and make you question reality. You have to experience it to believe it!
      • Louis Tussaud's Waxworks is a museum featuring over 60 life-like wax effigies of famous people from Thailand and around the world.
      • Scream in the dark is a surreal journey into a black abyss of crazy clowns, the living dead, attacking skeletons, mystical mirrows and enough illusions and delusions to give you the happiest of nightmares for weeks to come.
      • It’s just like in the movies! Music and light effects immerse you into the experience. The Laser Maze Challenge™ is easy to learn, but impossible to master, so you can’t wait to play again…
  1. Residential Property Development: MINT has five premium residential development projects in Bangkok, Koh Samui, Phuket, and Chiang Mai in Thailand, and Maputo in Mozambique.
      • The St. Regis Residences Bangkok consists of 53 residences and penthouses on Rajdamri Road in Bangkok's CBD. The Residences embodies the Thai warmth of character along with the extraordinary refinement and luxury that are the hallmarks of the St. Regis brand.
      • The Estates Samui comprises of 14 villas above a secluded cove of white powder sand and crystal blue water on Koh Samui. The facilities are next to, and managed by, Four Seasons Resort, Koh Samui.
      • The Residences by Anantara, Layan, Phuket, consists of 15 uniquely designed pool residences on a tree-lined hillside boast panoramic views of Layan beach and the Andaman Sea. The pleasures of a prestigious residence extend to the five-star facilities and services of Anantara Layan Phuket Resort.
      • Anantara Chiang Mai Serviced Suites is Chiang Mai's first luxury resort-style condominium project. The 7-storey condominium building features 44 units in total and is situated on a prime location on Charoen Prathet Road across from Anantara Chiang Mai Resort, near Chiang Mai Night Bazaar and iconic Ping River.
      • Torres Rani, Maputo consists of 18 - Storey residential tower and 21 - storey office tower in the heart of Maputo CBD. The residential project boasts 181 units of one, two and three - bedroom apartments for rent and 6 penthouse units for sale.

       

       

       

       

       

       

  1. Points-based Vacation Club Project: Launched for the first time under the Anantara brand, Anantara Vacation Club is a collection of luxurious shared-ownership villas and apartments located in a variety of resort destinations for the use of its owners. Anantara Vacation Club owners purchase Club Points that are backed by unencumbered real estate assets in some of the most beautiful resort properties imaginable, held in trust for their benefit and security. The number of Club Points owned determines your resort destination, time of year, length of stay, and the type of accommodation. Current properties include Koh Samui, Phuket, Chiang Mai, Bangkok, Bali - Indonesia, Queenstown - New Zealand and Sanya - China. MINT will be adding additional destinations to this list in the coming years.
Extract from Annual Report 2016
SECTOR OVERVIEW AND COMPETITION

With the rapid expansion over the years, our key markets today are Thailand, Australia, Portugal, Brazil, the Indian Ocean, Africa, the Middle East and China.

Thailand

Thailand continues to be an attractive destination for all types of travelers, whether they are business or leisure travelers, eco-tourists or luxury tourists, from within the region or across the globe. The country has long built its reputation as a tourist destination, with its sandy beaches, jungle treks, reasonably-priced accommodation, good food and friendly service. Furthermore, well-developed transportation and communication infrastructure, modern retail centers, rich cultural and religious attractions helped the Kingdom to stay ahead of its competitors in the region.

With both government and private sector initiatives to market Thai tourism around the world, the sector has grown to become one of the country’s most productive and sustainable industries. The Tourism and Sports Ministry reported 32.6 million international tourist arrivals in 2016, setting a new record with a 9% increase from 29.9 million in 2015. Tourism revenue also increased by 14%, to Baht 2.5

Tourism revenue also increased by 14%, to Baht 2.5 trillion in 2016 from Baht 2.2 trillion in 2015. With such strong fundamentals and competitiveness, Thai tourism is expected to continue to grow in 2017 with 35.6 million visitors and over Baht 2.71 trillion of revenues expected to be generated in 2017, representing growth of 9% and 8% respectively from 2016.

Australia

Tourism Research Australia expected the country’s inbound arrivals to grow 9.3% in 2016 and 6.7% in 2017. The country’s tourism in recent years have been driven by international arrivals, in particular the Asian markets. The biggest growth driver has been China, supported by the growing middle-income class with greater capacity to travel. In addition, international aviation capacity to Australia grew by 5.1% over the first three quarters of 2016, largely attributable to the entry of Chinese carriers, Xiamen Airlines and Hainan Airlines. By 2017 - 2018, China is expected to be the largest source of inbound arrivals to Australia, overtaking New Zealand. China’s share of total visitors is expected to grow from 13% in 2015 to over 25% in 2025.

Domestically, the lower Australian dollar has influenced residents’ choices away from overseas travel towards domestic travel. Domestic visitor nights are forecast to increase by 4.5% in 2016 and 3.8% in 2017. The changing pattern of domestic travel is anticipated to persist as the value of the Australian dollar is expected to remain low.

Portugal

With its mild climate, abundant sunshine and outstanding beaches, Portugal is the ideal year-round European holiday destination. Its great cuisine, fine wines and hospitable people are the additional advantages. Tourism and tourism related activities accounted for approximately 10% of the country’s GDP in 2014, and is on a rising trend with the strong tourist arrivals in recent years. Portugal received over 19 million tourists in 2015, a 7% increase from the prior year. The trend continued going into the first nine months of 2016, where tourist arrivals were up by 4.3% to 15.6 million visitors. Even with concerns following Brexit, the United Kingdom remained the biggest tourist market for Portugal, followed by Spain, France, Germany and Holland. As tourism fears of geopolitical instabilities and terrorism drove customers away from other Mediterranean destinations, Portugal has been the prime beneficiary, along with Spain. The Algarve Tourism Board has issued a statement that “2016 will be the best year ever” for the region’s tourism.

Brazil

The hospitality industry in Brazil has seen declining occupancies since 2012 primarily as a result of the slowdown of the country’s GDP growth rate. In 2016, the economy continued to be sluggish, undermined by the political instability with the impeachment of the country’s president. Relatively, resort hotels performed better than city hotels as the resort sector benefited from the steep devaluation of the Brazilian Real, whereby the country has become a cheaper destination for foreign tourists. In addition, Brazilians also took more domestic trips as travel abroad became more expensive.

2017 shows signs of recovery in Brazil with stabilized demand and limited growth of new supply. In addition, the economic and political conditions have already seen signs of improvement with real GDP growth, inflation control and lower interest rates. Overall, Minor Hotels remains optimistic about the long-term prospect of the tourism sector in Brazil.

Indian Ocean

With its pristine natural islands, crystal-clear water and white sandy beaches, the Maldives is today one of the most expensive and aspirational leisure destinations worldwide. Tourism is the single largest contributor to the economy, with the total contribution representing over 75% of total GDP. Over the past few years, the international arrival growth to the Maldives has been driven by Chinese, which for the first 10 months of 2016, accounted for almost 30% of total visitors. However, over the same period, number of Chinese tourists declined by over 10%, primarily attributable to the slowdown in Chinese economy and the Chinese currency devaluation. As a result, Maldives Ministry of Tourism has revised down the 2016 target of international arrivals from 1.5 million to 1.4 million, the same level as 2015. With additional hotel openings in 2016 - 2017, the Maldives will be a challenging market. However, over time, the Maldives tourism has proven itself to be resilient and rebounded quickly. With its strong reputation as a tourist destination, we believe the Maldives will retain its appeal in the long-term.

Sri Lanka has seen its number of tourist arrivals double in just four years, from 1 million in 2012 to 2.05 million in 2016. The beauty of the country and the hospitality of the people have been the natural attractions. In addition, the investment in infrastructure across the country has helped spur rapid economic growth and social development. In 2016, Sri Lanka Tourism has developed a tourism strategy and master plan, where the country will focus on sustainable tourism development and promotion, with the aim to position Sri Lanka as the most sought-after travel destination in Asia.

Seychelles is known for its granite islands, stunning beaches and diverse ethnicity. The country reported international arrivals at a 10-year compounded annual growth rate of 7.9% from 2006 - 2015, primarily as a result of improving air access and more direct flights. The limited future supply and continued increase of air connectivity bode well for the tourism industry going forward.

Africa

The World Tourism Organization, UNWTO’s tourism outlook is positive for Africa in general, and sub-Saharan Africa in particular. Back in 1995, Africa welcomed just 19 million visitors from abroad. The figure increased by almost three-folds to 55.3 million in 2014. The countries in the region realize that the Africa’s travel and tourism industry has incredible potential to help generate growth, create jobs and enable economic development. With its rich natural and cultural resources, the continent’s early stages of tourism sector development provides vast opportunities for growth. Various investments have been put in the region, including in hotel rooms, infrastructure and airports. To name a few, the new Victoria Falls International Airport in Zimbabwe, the increased flights at Livingstone Airport in Zambia and the expansion of Kasane International Airport in Botswana will strategically expand the tourist traffic to the region.

The Middle East

2016 was a challenging year for most of the Middle Eastern countries with the slowdown in international tourist arrivals, attributable to lower oil prices, strong US dollar and slower economic growth in Europe and China. However, Minor Hotels remains confident in the long-term potential of the countries where we have our operation. We are excited to take part in building up towards the two mega events – the World Expo 2020 in Dubai and 2022 FIFA World Cup in Qatar.

It is the goal of the government of the United Arab Emirates, Qatar and Oman to increase the contribution of tourism revenue to their GDP. In the United Arab Emirates, the Minister of Economy highlighted that it is a national strategy to position the country as a leading tourist destination, with the commitment to develop its entertainment offerings and mega tourism projects, as well as continued investment in airline infrastructure. Qatar has a National Tourism Sector Strategy 2030, to position itself as a “world-class hub with deep cultural roots”, by creating a high profile product that will appeal to all market segments from cultural tourists and families to sports fans and business travelers, which is supported by USD 40 - 45 billion worth of investment. Oman’s Ministry of Tourism has revealed its Vision 2040, with an aim to double the number of tourists visiting the Sultanate, to nearly five million per year by 2040. Up to USD 35 billion will be invested in the tourism industry over 25 years to redevelop Muscat International Airport, expand Oman Air fleet, increase hospitality capacity and promote clustering of sights and activities of its well-preserved natural surroundings, cultural traditions and history.

China

Minor Hotels manages two properties in China as of the end of 2016, with an existing pipeline to open another six hotels over the next three years. In addition to capturing the huge potential of the tourism industry in China itself, our strategy is to build brand equity with Chinese travelers for their outbound traveling. Even with over 120 million outbound Chinese tourists in 2015, Chinese outbound tourism is still in the initial stage, with promising growth in the long term. Since 2009, the Chinese government has viewed tourism as a “pillar industry” with strategic importance to the national economy and as a service industry that meets the needs and wishes of the population. Increased income, long-term accumulated tourism demand of Chinese people, paid-holidays, easier access to foreign currencies and visa applications are among some of the factors that help support the Chinese outbound travel growth.

Development of the Thai Tourism Market

Growth of Serviced Apartments and Occupancy in Australia
Extract from Annual Report 2016
Company-Owned, Oaks and Managed Hotels Revenues

Performance Highlights – Minor Hotels
  Overall Thailand Australia Maldives & UAE Portugal**
2016 2015 %
Change
2016 2015 %
Change
2016 2015 %
Change
2016 2015 %
Change
2016
System-Wide Sales
(Baht million)
41,249 35,452 16 10,324 9,347 10 9,264 8,640 7 4,830 4,867 (1) 3,436
Total Number of Hotels 155 138 12 24 21 14 51 50 2 6 6 0 12
Total Number of Rooms 19,776 17,714 12 4,202 3,728 13 6,339 6,232 2 454 454 0 2,480
Occupancy Rate (%)* 68 68 0 74 72 2 77 76 1 57 62 (8) 64
Average Daily Rate (ADR)*
(Baht)
5,956 5,830 2 4,998 4,832 3 4,557 4,271 7 27,766 29,571 (6) 4,526
Revenue per Available
Room (RevPar)* (Baht)
4,051 3,964 2 3,723 3,487 7 3,495 3,258 7 15,867 18,310 (13) 2,886

* Organic statistics excluding new hotels.
** Acquisition of Tivoli Hotels & Resorts was completed in February 2016.

 

Revenue (Baht million) 2016 2015 % Change
Hotels (Owned & Managed) 25,904 19,183 35
Real Estate (Residences & Anantara Vacation Club) 3,907 4,502 (13)
Other Mixed-Use 499 532 (6)
Total Hotel Group 30,310 24,217 25

 

Minor Hotels reported 2016 net profit growth of 27%, from the gains relating to our acquisitions of Tivoli portfolio and hotels in Zambia. Excluding such gains, our core net profit declined by 7%.

The following are Minor Hotels’ key developments during 2016, which will serve as the engines for building sustainable earnings going forward.

 

At the end of 2016, Minor Hotels operated 68 owned and joint-venture hotels, with 8,904 rooms, or an increase of 18% from the prior year. Our company-owned and joint-venture hotels are operated under the brands Anantara, AVANI, Elewana Collection, PER AQUUM, Tivoli, Four Seasons, St. Regis, JW Marriott and Radisson Blu. In 2016, owned and joint-venture hotels reported revenues of Baht 16,118 million, an increase of 35% from 2015, and represented 58% of total revenues of the hospitality business.

2016 was a milestone year for Minor Hotels with the entry into Europe and South America through the strategic acquisition of Tivoli Hotels and Resorts. The portfolio of twelve hotels in Portugal and two hotels in Brazil will serve as an operating platform to drive further growth in those markets. With over 80 years of history, the Tivoli brand brings with it a rich heritage, a deeply experienced team and a highly loyal customer base. In addition to refreshing some of the assets through renovations, we are already planning to take our home-grown Anantara and AVANI brands to Portugal, while at the same time bring the Tivoli brand to other regions that we operate in. We have already signed a contract to manage a hotel under the Tivoli brand in Brasilia, the federal capital of Brazil, and are in the process of rebranding the Souq Waqif Boutique Hotels in Doha, which comprises a cluster of seven properties, to Tivoli. We look forward to welcoming them to our Tivoli portfolio in 2017.

Minor Hotels introduced the Anantara brand to Sri Lanka with the launch of two hotels in 2016. Hidden on a rocky outcrop along a secluded stretch of Sri Lanka’s southernmost coastline, the 152-key Anantara Peace Haven Tangalle Resort offers a naturally exclusive hideaway for exotic beach life amidst a coconut plantation and golden crescent shores with Indian Ocean views. The resort is conveniently located, with easy access to iconic cultural sites, national parks and whale watching destinations. Anantara Kalutara Resort is a peacefully secluded coastal hideaway, but is only ten minutes from the town of Kalutara and an hour from the capital Colombo. With the unique setting between Sri Lanka’s southwest coast of the Indian Ocean and Kalu River, the 141-key resort was originally designed by the country’s most notable architect, the late Geoffrey Bawa, and is inspired by his vision of simplistic elegance and great craftsmanship.

We strengthened our AVANI brand with the addition of two owned hotels in Thailand. In early 2016, we opened the world’s first purpose designed AVANI hotel, AVANI Riverside Bangkok Hotel. Rising above the banks of Bangkok’s Chao Phraya River, the hotel offers a smooth blend of contemporary style, modern warmth and stunning views across Asia’s most dynamic city. All of the 248 guest rooms and suites boast uninterrupted city and river views. Moreover, the hotel raises the bar for conferences and meetings in Bangkok with the new 4,500 sq.m. multi-purpose events complex.

In November, we relaunched the first-ever hotel in our portfolio as AVANI Pattaya Resort & Spa. Previously operated as Pattaya Marriott Resort & Spa, the resort facilities, including guest rooms, meeting rooms, bar and restaurant, have been refurbished. Conveniently located in the heart of the city, on Pattaya Beach, the 298-room resort offers great sea views and a relaxation for both business and leisure travelers, and is connected to Royal Garden Plaza, our entertainment mall.

We acquired Elements Boutique Resort and Spa Hideaway, a 34-key resort located in the southwest of Koh Samui in October 2016. The property is currently under renovation and is expected to be re-opened as an AVANI property with 58 keys by 2018.

Oaks Hotels and Resorts, our serviced apartment accommodation operator based in Australia, continued to expand its portfolio with the opening of two properties under management letting rights (MLR) contracts in 2016, Oaks Woollongabba in Brisbane and Oaks Southbank in Melbourne. The addition brought number of Oaks properties to a total of 55 with over 6,300 rooms by the end of 2016. During the year, Oaks continued to perform well with revenues growing by 11% from the prior year. Oaks remained another major revenue contributor to Minor Hotels, with 22% contribution to the total hospitality revenues.

Located in the vibrant, inner-city suburb of Woolloongabba, Oaks Woolloongabba is one of Brisbane’s newest hotel developments, in proximity to the Brisbane sporting precinct, hospitals, University of Queensland, restaurants, cafes and boutique shopping. Oaks Southbank provides a comfortable and modern base for travelers in the popular arts, dining and entertainment hub of Southbank in Melbourne.

Minor Hotels continued to build the network of hotels under its management as another platform to generate revenues and net profit. At the end of 2016, we managed 36 hotels under the brands Anantara, AVANI, Oaks, Tivoli, PER AQUUM and Elewana Collection in 13 countries. We reported revenues from management contract of Baht 1,103 million in 2016, a 12% growth from the prior year. During 2016, we signed another 7 new hotel management contracts in order to ensure our future pipeline. Our five-year strategic plan targets over 100 hotels under management contracts in 19 countries across our brands by 2021.

This year, we introduced the Anantara brand to Oman with the opening of two hotels under management contract. Anantara Al Jabal Al Akhdar Resort, in northern Oman, is the highest five star luxury resort in the Middle East. Perched 2,000 meters above sea level on the Sultanate’s fabled ‘Green Mountain’, the 115-key resort overlooks the dramatic canyon and features a spectacular cliff-edge platform known visited the exact spot in November 1986. In southern Oman, the 136-key Al Baleed Resort Salalah by Anantara is situated between a long, scenic beach and freshwater lagoon, bordering the historic Al Baleed UNESCO archaeological site.

Minor Hotels strengthened the AVANI portfolio with the launch of two hotels in 2016. We opened AVANI Khon Kaen Hotel & Convention Centre, our third AVANI in Thailand. Situated in the city center of Khon Kaen, a major commercial hub of the Northeastern region of Thailand, AVANI Khon Kaen offers 196 guest rooms, blending a modern décor with a distinctive Northeastern Thai style. The hotel is ideal for both leisure and business travelers. Furthermore, AVANI marked its debut in the United Arab Emirates with the 216-key AVANI Deira Dubai Hotel. The hotel is conveniently located within proximity of Dubai International Airport and the world-famous Gold and Spice Souks. Guests can explore Deira’s vibrant streets and the historic town surrounding the creek.

With the goal to maintain residential sales as one of the core businesses of Minor Hotels, we continued to build our residential inventory. In 2015, we launched The Residences by Anantara, Layan, Phuket, the project which continues to be the major source of our residential revenues and earnings. The Residences by Anantara is a luxury residential villa development overlooking Layan Beach, along Phuket’s serene sunset coast, adjacent to our Anantara Layan Phuket Resort. Of the 15 villas, we have sold 6 villas as at the end of 2016. Going into 2017, we continue to receive interests from many potential buyers. We are confident in the Phuket residential market as the real estate prices continue to rise.

In the fourth quarter of 2016, the construction of Anantara Chiang Mai Serviced Suites, our joint-venture residential project, was completed. The property is a luxury condominium which combines a contemporary urban lifestyle with understated Chiang Mai elegance in the heart of the city. Of the 44 units available for sale, we transferred and recognized sales of 23 units in 2016.

Another joint-venture project outside of Thailand, Torres Rani, located just steps from the scenic waterfront in Mozambique’s cosmopolitan capital city of Maputo, was also completed towards the end of 2016. The project boasts 187 units of one, two and three-bedroom apartments. While most of the units will be leased to accommodate the expatriates community in the city, there are six penthouses available for sale, of which we successfully sold one in 2016.

In 2016, we continued to build the foundation for Anantara Vacation Club (AVC), as we believe it will be one of our revenue and net profit drivers in the long term.

AVC, our shared ownership business, provides its Club Point Owners with long-term access to some of the most luxurious holiday destinations in the world, at a one-time fixed price. In addition, the business is complementary to our hotel business, as Club Point Owners can use their Ownership for stays at participating Minor hotels around the world.

After five years of operation, AVC took the opportunity to adjust its pricing and payment schemes in 2016, which resulted in a rebasing year for the business. Proactive measures against potential bad debt and cancellations were taken, resulting in an acceleration of the cash flow received. In conjunction with the review of our customer payment options, AVC introduced a new credit scoring process to improve the quality of the loan portfolio.

In terms of product offering, we have added two destinations to AVC’s club resort collections during 2016. We launched Bangkok Riverside in addition to the existing Sathorn apartment units in Central Bangkok. We also opened Chiang Mai as a new club destination this year. As a result, AVC had a total inventory of 160 Club and 55 Developer units in seven destinations, including Koh Samui, Phuket, Bangkok and Chiang Mai in Thailand, Queenstown in New Zealand, Bali in Indonesia and Sanya in China at the end of 2016. We had a total of approximately 8,000 Club Point Owners as of year-end.

With these changes, we believe that Anantara Vacation Club is building the foundation for a sustainable business model in the long term.