Thai hospitality operator Minor Hotels has registered a 450% year-on-year surge in 2023 core net profit, aided by a record full-year core revenue of THB121.4bn (around $3.4bn).

The 25% increase in the international hotel owner and operator's core revenue compared with 2022 was bolstered by total system sales reaching THB157bn (nearly $4.4bn).

Europe and Thailand were standout markets, with core revenue growth of 25% and 65%, respectively. The consolidated core profit of THB4.95bn aligned closely with pre-Covid figures, reaching 96% of the 2019 level.

The resurgence in leisure and business travel fuelled a 10% increase in ADR across Minor's portfolio. Europe and the Americas saw a 14% rise, while Thailand experienced a 29% increase.

Group-wide occupancy improved to 66%, a 6% increase from 2022, with Thailand's hotels leading with a 17% growth in occupancy.

Despite asset rotation during the pandemic, net profit after tax (NPAT) exceeded 2019 levels. This was attributed to significant average daily rate (ADR) growth, strong brand equity, and cost control, which helped counteract a 23% rise in operating costs due to higher interest rates and inflation.

The combined impact of higher ADR and occupancy led to a 22% rise in group-wide revenue per available room (RevPAR), with Thailand and Europe & Americas reporting growth of 73% and 26%, respectively.

The fourth quarter showed a core net profit of THB1.89bn, a 95% increase on a like-for-like basis, despite being slightly lower in real terms compared to the same quarter the previous year.

Looking ahead, the growth trend is expected to continue into this year, with room revenues in January and bookings for February and March already outpacing 2023 by 39% in Thailand and 20% in Europe.

In addition, Minor Hotels expanded its inventory by 1,257 rooms in 2023 and plans to add 200-250 new hotels over the next three years to its current count of 540 properties worldwide.