Venture(US:VEMLY) Sou Hu Cai Jing·2025-10-27 07:49Core Viewpoint - William Heinecke, the 76-year-old billionaire, announced plans for Minor International to launch a hotel real estate investment trust (REIT) in Singapore by Q1 2026, aiming to raise up to $1.5 billion to alleviate debt and support expansion [3][22]. Company Strategy - Minor International operates approximately 600 hotels with over 90,000 rooms globally, shifting its focus from direct asset ownership to capital operations and management [3][10]. - The company plans to inject some hotel assets into the REIT, reducing its ownership stake from 75% to below 60% [8][10]. - By 2027, the company aims to increase its hotel count to 850 and further to over 1,000 by 2030, with a significant portion of new hotels located in Asia [10][12]. Financial Performance - Minor International's debt decreased by 9.7% year-on-year to 93 billion Thai Baht, with a strong recovery from a pandemic-related net loss of approximately $650 million in 2020 [22][25]. - In 2024, the company reported a 44% increase in net profit to 7.8 billion Thai Baht, driven by rising demand for luxury travel experiences [25][26]. Market Expansion - The company is accelerating its expansion in Asia, with a focus on Singapore and Japan, including plans to develop 21 hotels in Japan over the next decade [10][12]. - Minor International's brand portfolio includes various hotel brands, with plans to double the number of Avani hotels to nearly 100 [17][18]. Investment Outlook - UBS analysts noted that the potential REIT could further accelerate Minor's deleveraging process and enhance investment returns, serving as a catalyst for a stock rating revision [26][27].