Minor Hotels Reports $84.3M Q2 Profit as Europe Offsets Middle East

Minor Hotels reported a 2% year-on-year increase in second-quarter 2026 core profit to $84.3 million, driven by a 5% RevPAR growth in the Europe and Americas region. This performance offset operational disruptions in the Middle East, while the company expanded its pipeline by signing 20 new hotel management agreements during the quarter. The group maintained steady system-wide RevPAR as a 1% increase in average daily rates balanced a one-percentage-point decline in occupancy.

How did regional performance impact Q2 revenue?

The Europe and Americas region delivered the strongest performance for the quarter, generating a 5% increase in RevPAR. This growth was supported by particular strength across Spain, Central Europe, and Italy, according to Hotel Business [1]. This regional performance helped cushion operational disruption and market pressure in the Middle East, which faced the greatest pressure during the period [2]. Overall, Q2 core revenue rose 1% to $1.08 billion, which hotelowner.co.uk reported equates to THB 35.8 billion or £802 million [2].

Performance across Asia, the Indian Ocean, Australasia, and Africa was softer overall compared to Europe [1]. However, Asia showed specific pockets of strength, particularly among luxury properties in Thailand [1]. These Thai luxury properties delivered a 7% year-on-year increase in RevPAR, driven entirely by higher rates rather than volume [2]. System-wide, the company recorded a 68% occupancy rate for the second quarter, representing a 1% dip compared to the same period the previous year [2]. Disciplined cost management across the group lifted EBITDA by 2% to $220 million, or THB 7.5 billion [2].

What factors drove the first-half profit decline?

First-half core profit softened 4% to $60 million despite an overall revenue increase, impacted by renovations at owned properties and unrealized foreign exchange losses. Hotel Business reported that first-half core revenue rose 3% to $2 billion, while EBITDA increased 2% to $320 million [1]. According to hotelowner.co.uk, the half-year core profit translates to THB 2.2 billion, or £49.3 million, while the revenue figure reached THB 66.2 billion [2].

During the first six months of 2026, the company maintained rate integrity, supporting a 3% increase in system-wide RevPAR alongside a 4% rise in ADR [1]. Occupancy for the half-year edged down by 1% to 66% as demand remained uneven across different markets [1]. First-half growth was spread across multiple parts of the portfolio, with the Europe and Americas region delivering a 5% RevPAR increase, Thailand growing 6%, and the wider Asia and Indian Ocean portfolio rising 10% [1]. These gains provided a counterweight to the continued pressure experienced in the Middle East [1].

Where is the company expanding its pipeline?

Minor Hotels accelerated its development activity during Q2 by completing 20 new hotel management agreements. These agreements included signings in Sharjah, Austria, Saudi Arabia, and the Caribbean [1]. This brought the first-half total to 29 properties, representing 2,165 keys [2]. The group is on track to surpass its record year of 40 signings in 2025 [1]. The company stated this increased pace reflects growing owner demand for its operating platforms and brands [1].

Notable announcements during the period included the Anantara Miami Resort & Residences, which marks the brand's debut in the United States [2]. The company also announced three Anantara properties in India and its entry into Turkey [1]. Furthermore, the group unveiled The Wolseley Hotel New York, the first hotel announced under The Wolseley Hotels brand, and signed the Avani Kyoto in Japan [1]. These agreements advance the company's asset-right strategy, aiming to grow the portfolio while creating a balanced mix of owned, managed, and franchised hotels [1].

Which brands are driving the new soft brand strategy?

Minor Hotels rebranded several existing properties during the first half of the year to launch and expand new collections. Porta Rossa Hotel Firenze became the first member of the new Colbert Collection soft brand [1]. Additionally, Tivoli President Milano joined the group's luxury portfolio in Italy, while three properties across Spain and Germany converted to iStay Hotels by NH [1].

The company also evolved Anantara Vacation Club into Minor Vacation Club [1]. This change reflects the expansion of the vacation ownership business into a multi-brand offering, with two new club resorts scheduled to open in Japan later in 2026 [1].

How many hotels opened in the first half of 2026?

Minor Hotels opened 11 new hotels representing 1,167 keys during the first half of the year. Notable additions included the Tivoli Palazzo 1880 Lecce Hotel and new locations marking the company's entry into Slovenia and Croatia [1]. The group also expanded its select-service portfolio in Thailand with the opening of NH Hua Hin [2].