Minor International (MINT) expects revenue from its core accommodation, food and lifestyle businesses to drive profitability in the second half of the year as the recovering tourism industry boosts demand for hospitality services.
The company is also planning to issue new subordinated debentures worth 10 billion baht to replace MINT18PA, the company's currently active debentures worth 15 billion baht, which will be redeemed one year earlier than scheduled on Aug 31 to give investors a full refund of their investments.
With a credit rating of "stable" from Tris Rating, the bonds will be available in September via multiple banks, including Bangkok Bank, Krungthai Bank and Kasikornbank.
Chaiyapat Paitoon, chief financial officer of MINT, said the company saw a significant recovery in its tourism-related businesses in the first half of 2022, with a 66% year-over-year increase in core revenue in the first quarter.
He explained that the growth was due to the recovering tourism sector that resulted from government policies to incentivise tourism, such as the discontinuation of the Thailand Pass and the fourth phase of the "We Travel Together" programme.
MINT's Thai hotels have seen a continuous growth in the occupancy rate, rising to 43% in the second quarter from 31% in the first quarter.
Mr Chaiyapat also said MINT's businesses in other regions such as Europe and the Maldives had rebounded to pre-pandemic levels.
MINT plans to enhance its profitability by adjusting hotel prices in accordance with rising demand and occupancy rates, and open an additional 49 hotels, with 10,000 rooms to be added to its chain in the second half of the year.
The company also plans to make its lifestyle products and food businesses, which include Bonchon and Swensen, more widely available using online ordering systems via websites and apps, and an omni-channel to distribute products online and offline.
The company's restructuring will also ensure that global supply chain issues will not impact its food production and distribution, Mr Chaiyapat said.
