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 161 hotels and serviced suites with over 20,000 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 Sunset Coast Samui Resort & Villas 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 30 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 Hua Hin Resort & Villas Thailand
      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
      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
      Niyama Private Islands Maldives Maldives
      Naladhu Private Island 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 and Elewana. Currently, there are 36 hotels under MINT's management umbrella.
    6. Anantara Sathorn Bangkok Hotel 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 Guiyang Resort China
      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 + Luang Prabang Laos
      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 Boutique by Tivoli Qatar
      Kifaru House Kenya
      Kitich Camp Matthews Forest Kenya
      Lewa Safari Camp Kenya
      Loisaba Star Beds Kenya
      Loisaba Tented Camp 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 54 properties, over 6,200 rooms under management throughout Australia, New Zealand and Dubai. In 2017, MINT also expanded the AVANI brand in Australia and New Zealand under Management Letting Rights contract.
    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
      1
        South Island
      2
      UAE Dubai
      1
      Country Region
      No of properties
      Australia Queensland
      1
        Victoria
      1
      New Zealand North Island
      1
  1. Spa Business: MINT currently has over 61 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 Rasananda Koh Phangan Villas Thailand
      Anantara Chiang Mai Resort Thailand
      Anantara Layan Phuket Resort Thailand
      Anantara Sathorn Bangkok Hotel Thailand
      AVANI Hua Hin Resort & Villas 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
      Royal Orchid Sheraton Hotel & Towers Bangkok Thailand
      Tivoli Ecoresort Praia Do Forte Bahia Brazil
      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+ Luang Prabang Laos
      AVANI Sepang Goldcoast Resort Malaysia
      Anantara Veli Maldives Resort Maldives
      Anantara Kihavah Maldives Villas Maldives
      Anantara Dhigu Maldives Resort Maldives
      Naladhu Private Island Maldives Maldives
      Niyama Private Islands Maldives 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
      Tivoli Avenida Liberdade Lisboa Portugal
      Tivoli Carvoeiro Algarve Portugal
      Tivoli Palacio de Seteais Sintra Portugal
      Banana Island Resort Doha By Anantara Qatar
      Souq Waqif Boutique Hotel Qatar
      AVANI Seychelles Barbarons Resort & Spa Seychelles
      Anantara Kalutara Resort Sri Lanka
      Anantara Peace Haven Tangelle Resort Sri Lanka
      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
      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.
      • Layan Residences by Anantara, 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 2017
SECTOR OVERVIEW AND COMPETITION

With Minor Hotels’ rapid expansion over the years, our key markets today are Thailand, Australia, Europe, Brazil, the Maldives, Middle East and Africa.

Thailand

Thailand continues to be a highly attractive destination for travelers of all types, whether they are business or leisure travelers, eco- or luxury tourists, from within Asia or across the globe. The country has a well-established reputation as a leading global tourist destination, with its sandy beaches, rich culture, jungle treks, reasonably-priced accommodation, good food and friendly service. Well-developed transport and communications infrastructure, modern retail centers and varied cultural and religious attractions have helped the Kingdom to stay well ahead of its regional competitors.

With both government and private sector initiatives to promote Thai tourism across the globe, the sector has become one of the country’s most important industries, contributing more than 20% of Thailand’s GDP in 2017. Ministry of Tourism and Sports reported 35.4 million international tourist arrivals in 2017, setting a new record with a 9% increase from 32.6 million in 2016. China, the largest single country of tourists coming to Thailand, contributing almost 30% of international tourist arrivals, continued to be a major driver with 12% increase in 2017 compared to prior year. Tourism revenue increased by 9%, to Baht 2.8 trillion in 2017 from Baht 2.5 trillion in 2016. With such strong fundamentals and core competitive strengths, looking forward into 2018, the number of inbound tourists is expected to grow by 7% to 38 million visitors. Continuing to focus on quality, the government expects tourism revenues of over Baht 3.0 trillion in 2018, representing growth of 9% from 2017.

Australia

Tourism Research Australia forecast the country’s inbound arrivals to grow 7.0% in 2018 and 5.4% in 2019. The country’s tourism in recent years have been driven by international arrivals, in particular the Asian markets. The biggest source market has been China, followed by India, supported by increasing prosperity and growing middle class with greater capacity and appetite to travel. 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 to Australia is expected to grow from 15% in 2017 to over 25% in 2027.

Domestically, Australian economic growth is expected to remain below its historical average in the near future, while discretionary expenditure is impacted by slower growth in capital city house prices and sluggish wage growth. As a result, domestic visitor nights are forecast to increase by only 1.5% in 2018. As economic growth picks up in 2019 and the Australian dollar remains close to its long-term average, domestic tourism activities are expected to strengthen, with domestic visitors forecast to grow by 2.9%.

Europe

Our first expansion into Europe was the acquisition of Tivoli Hotels & Resorts in Portugal in 2015. Later in 2017, we expanded our presence in the continent through the investment in Corbin & King in the UK.

With its mild climate, abundant sunshine, outstanding beaches and rich culture, Portugal is the ideal year-round European holiday destination. Its renowned cuisine, fine wines and hospitable culture are additional attractions. Tourism in Portugal has been growing since 2011, helping the heavily indebted country grow out of its economic and debt crises. According to World Travel & Tourism Council, the total contribution of travel and tourism to Portugal’s GDP was 17% in 2016 and is forecast to rise to nearly 20% of GDP by 2027. Portugal received over 20 million tourists in 2016, a 5% increase from the prior year. The trend continued into the first six months of 2017, where tourist arrivals were up by 8.1% to 8.6 million visitors from the prior period. Europe was the single most important source of visitors to Portugal. Even with concerns regarding Brexit, the UK remained the biggest tourist market for Portugal, followed by Germany, France and Spain. As tourism fears of geopolitical instabilities and terrorism drove customers away from other Mediterranean destinations, Portugal has been the principal beneficiary.

In the UK, Organization for Economic Co-operation and Development (OECD) expects GDP growth to ease to 1.5% in 2017, and further weaken to just above 1% in 2018 - 2019. Private consumption is projected to remain subdued as higher inflation, pushed up by the past depreciation of British pounds, holds back household purchasing power. There is also a negative impact of uncertainty about the final outcome of Brexit negotiations. In any case, the weak pound has been helpful to exporters and inbound tourism. VisitBritain forecast 39.9 million inbound visits in 2017, an increase of 6.2%, and 41.7 million visits in 2018, an increase of 4.4%. With the pounds remaining much lower than the pre-referendum level, the UK will remain a good value-for-money destination.

Brazil

The hospitality industry in Brazil has seen declining occupancies since 2012 primarily as a result of the slowdown in the country’s GDP growth rate. Nevertheless, the industry began to exhibit signs of improvement in late 2016, with international tourist arrivals of 6.6 million in 2016, an increase of 4.8% from the prior year. The trend continued into 2017 with stabilized demand and limited growth of new supply. In addition, the tourism industry is supported by improving economic and political conditions, with a pickup in household consumption, improvement in investment, low interest rates, recovering business sentiment and stronger dynamics in the labor market. As a result, at the end of 2017, the Brazilian government raised its 2017 and 2018 GDP growth forecasts to 1.1% and 3.0% respectively, following the faster-than-expected recovery from the deepest recession in decades.

The Maldives

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, representing almost 80% of total GDP in 2016. In 2017, the number of tourists visiting the Maldives increased by 8.0%, driven by European tourists, particularly from Russia and Italy. The increase in European tourists in that period offset the decline of the China market. In past years, China has been the largest source market for the Maldives, accounting for 22% of total visitors in 2017, but a market that has been declining over the past three years, primarily attributable to the slowdown in the Chinese economy. Unlike Australia and Thailand, the Maldives is perceived as a premium tourism destination and therefore was more sensitive to the economic slowdown.

The Maldives launched an integrated marketing campaign “Story of Maldives” for 2017 and 2018, focusing on emerging trends such as experiential travel, food, cultural tourism and ecotourism, targeting tech-savvy millennials through the internet and social media. Furthermore, the government is in the process of improving tourism infrastructure with the expansion and upgrade of the main Velana International Airport and the construction of five domestic airports, which are expected to be completed in late 2018.

Middle East & Africa

Middle Eastern countries that we operate generally demonstrated good tourism growth in 2017. Both the UAE and Oman reported increases in year-to-date 2017 tourist arrivals. However, arrivals into Qatar declined by 18% in the first nine months of 2017, following the blockade imposed since June 2017. In the long term, the government of these countries aim to increase the contribution of tourism revenue to their GDP. The UAE is perceived as commercial and business hub of the Middle East. In addition, new mega projects, such as Marsa Al Arab, a USD 1.7 billion mega tourist resort, will attract a steady flow of tourists into the country. Qatar continues to implement its National Tourism Sector Strategy, which they will work with partners to diversify visitor source markets, tourism products and services, with a focus on enhanced end-to-end visitor experience. In early 2016, Oman launched its National Tourism Strategy (NTS), with the primary aim to quadruple their international visitors to 11.7 million per year by 2040 from 2015. The plan is to develop and promote a series of destinations across the sultanate, offering visitors a broader variety of experiences, with the goal of encouraging extended visits and greater engagement with the country’s culture and natural sites.

The World Tourism Organization UNWTO’s tourism outlook is positive for Africa in general, and sub-Saharan Africa in particular. In 1995, Africa welcomed just 19 million visitors from abroad. That figure increased nearly three-fold to 57.8 million in 2016. UNWTO forecasts that arrivals will more than double to 134 million by 2030. The countries in the region realize that Africa’s travel and tourism industry has incredible potential to generate growth, create jobs and drive economic development. With its rich natural and cultural resources, the continent’s relatively underdeveloped tourism sector provides vast growth opportunities. Various investments have been made in the region, including in hotels, infrastructure and airports. For example, the upgrade of the Victoria Falls International Airport to accommodate wide-bodied aircrafts resulted in increase in flights to Victoria Falls and consequently growth in tourist arrivals of 22% in the first half of 2017.

Development of the Thai Tourism Market

Growth of Serviced Apartments and Occupancy in Australia
Extract from Annual Report 2017
Company-Owned, Oaks and Managed Hotels Revenues

Performance Highlights – Minor Hotels

 

Minor Hotels reported net profit of Baht 3,375 million in 2017, an increase of 20% from 2016 core net profit. This growth was primarily attributable to Thailand hotels, the Tivoli portfolio in Portugal and Brazil, higher residential sales and the turnaround of Anantara Vacation Club.

 

At the end of 2017, Minor Hotels operated 70 owned and partially owned or joint-venture hotels, with 9,099 rooms, representing an increase of 2% from the prior year. Our owned and joint-venture hotels are operated under the Anantara, AVANI, Tivoli, Oaks, Elewana Collection, Four Seasons, St. Regis, JW Marriott and Radisson Blu brands. In 2017, our owned and joint-venture hotels reported revenues of Baht 17,704 million, an increase of 10% from 2016 core revenues, and represented 57% of Minor Hotels’ total revenues in 2017.

Below are the key developments in Minor Hotels’ business in 2017.

During 2017, Minor Hotels launched two new jointventure hotels. In January, we brought the Oaks brand to India with the opening of Oaks Bodhgaya. Our 78-key new-build property is located in the temple town of Bodhgaya, home to a UNESCO World Heritage Site Mahabodhi Temple, where Buddha is said to have found enlightenment under the Bodhi Tree. Today, this temple complex is one of the most important Buddhist pilgrimage sites in the world. Later in the year, Minor Hotels continued to grow the AVANI brand in Thailand through a 50% jointventure arrangement to own and operate AVANI Hua Hin Resort & Villas in the beachside town in Thailand. The resort comprises 196 guest rooms and an expansive ballroom offering an oasis setting for business and social events in Hua Hin.

During the course of 2017, we focused our efforts on investing and upgrading our hotel portfolio in Portugal following the completion of our acquisition of the Tivoli hotel portfolio in early 2016. We completed renovation of five hotels, one of which has been rebranded to an AVANI. We are in the process of renovating another four hotels, which will be completed in time for the high season in the third quarter of 2018. The renovations will provide us with the opportunity to capture the upside of growing demand in Portugal, including through rate increases. In addition, the Anantara and AVANI brands debuted in Europe with the rebranding of two Tivoli hotels to Anantara Vilamoura Algarve Resort and AVANI Avenida Liberdade Lisbon Hotel. The rebranding not only provided us with a strategic opportunity to introduce these own brands to Europe, but also allowed for increased rates as a result of product and service improvements relating to the rebranding.

Our joint-venture company, Serendib Hotels Plc, acquired 51.15% stake of the Lantern Group, a luxury hospitality group in Sri Lanka, in September 2017. The Lantern Collection was conceptualized with the desire to create a beach getaway for travelers who appreciate an intimate vacation that captures the essence of the renowned Sri Lankan beaches. The chain comprises the Lantern Boutique Hotel, Ubuntu Boutique Hotel by Lantern and Riso & Amour Beach Villas by Lantern, with a total of 23 rooms, all within a short stroll along Mirissa beach. The investment is a milestone in Serendib’s quest to grow in the luxury villas segment in Sri Lanka, enabling the group to provide superior and diverse hospitality options to discerning travelers.

Minor Hotels offers serviced apartment accommodation service through our management letting rights (MLR) business model, primarily under the Oaks brand in Australia and New Zealand. With our multi-brand portfolio strategy in each geographical hub and our continued commitment to grow the AVANI brand, in 2017 we introduced the AVANI Residences to these markets, through the opening of AVANI Broadbeach Gold Coast Residences in Australia and AVANI Metropolis Auckland Residences in New Zealand. AVANI Broadbeach Gold Coast Residences is located on the beautiful Gold Coast, famous for its 17 km stretch of beach, epic surf and upscale dining and entertainment options. In the heart of Auckland, known as a melting pot of cultures and cuisine, AVANI Metropolis Auckland Residences offers a stylish city retreat with the city’s iconic Metropolis building overlooking Albert Park.

The addition of the two AVANI properties resulted in an increase in the number of our MLR properties to a total of 53, with over 6,400 rooms by the end of 2017. The MLR portfolio continued to be a major revenue contributor of the hospitality business, accounting for 20% of Minor Hotels’ revenues in 2017. Overall revenue from Minor Hotels’ MLR business increased by 3% in 2017 compared to 2016 core revenue.

Management of third-party owned hotels is a business model which enables us to grow our brand presence without having to invest capital into the relevant hotels, resulting in relatively higher profitability levels. In 2017, Minor Hotels continued to build its portfolio of managed hotels. At the end of 2017, we managed 35 third-party hotels in 14 countries under the Anantara, AVANI, Oaks, Tivoli, Elewana Collection and The Beaumont brands. We reported revenues from hotel management activities of Baht 1,171 million in 2017, a 6% increase from the previous year. During the course of 2017, we signed another 19 new hotel management contracts as we continued to grow our future hotel management pipeline. Our five-year strategic plan targets over 100 hotels under management contracts in 21 countries across our brands by 2022.

In 2017, we launched Anantara Guiyang Resort in China. Surrounded by an exclusive golf course and majestic mountains, this five-star luxury 218-key resort offers a natural oasis, 30 minutes from Guiyang City and 15 minutes from Guiyang Longdongbao International Airport. Nearby the resort, hot springs, lakes and waterfalls, karst caves, valleys and expansive forests combine to create a natural treasure trove. Ethnic minorities reveal colorful folkloric customs and 2,000 years of history can be relived with trips to dynastic relics.

Minor Hotels expanded the Tivoli brand outside of its home country, Portugal, to the Middle East with the management of Souq Waqif Boutique Hotels by Tivoli in Doha, Qatar. The hotels are a collection of nine unique and historical buildings featuring intricate décor and architecture, nestled in the heart of the historic Souq Waqif. Souq Waqif Boutique Hotels by Tivoli offers an immersion in Arabian tradition and culture, combined with the luxury service and personal attention for which Tivoli hotels are renowned.

In 2017, we continued to build our residential inventory pipeline to ensure growth over the long term as one of Minor Hotels’ core businesses. Currently, we have three projects underway to be launched over the next several years. In 2017, Minor Hotels entered into a joint venture with Kajima Corporation from Japan to develop a new luxury residential project named Avadina Hills by Anantara, next to Layan Residences by Anantara in Phuket. The project consists of 16 luxury villas. In addition, Minor Hotels has a joint-venture project to develop Anantara Ubud Residences, a 15-residential villas project in Ubud, Bali’s highlands, famed for its terraced rice paddies, local artisans and Hindu temples. Another project is Anantara Desaru Residences, consisting of 20 residential villas on the Desaru Coast of southeast Malaysia. Both projects are expected to be launched in 2019.

2017 was a successful year for Minor Hotels’ sales of residential properties. During the year, we sold three villas at Layan Residences by Anantara in Phuket, one villa at The Estates Samui, eight units of Anantara Chiang Mai Serviced Suites and two penthouse units of Torres Rani in Maputo. Minor Hotels has sufficient remaining inventory to sustain strong residential sales up to and through the launch of our new residential projects.

Anantara Vacation Club (AVC), our points-based 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. AVC’s business is also complementary to our hotel business, as Club Point Owners can use their Ownership for stays at participating Minor hotels around the world and otherwise generate revenue and business for our hotel business.

In 2017, we continued to grow our AVC business, as we believe it will continue to be one of our key revenue and net profit drivers in the long term. Following the launch of the pricing and payment scheme adjustments in mid-2015, AVC’s 2017 revenue grew by 28% compared to 2016. In addition, the quality of AVC’s loan portfolio significantly improved with the launch of a new credit scoring process.

In terms of product offering, AVC had a total inventory of 186 Club and 21 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 2017. We had over 10,000 Club Point Owners as of year-end.