Minor Hotel Group to enter European and South American markets

Thailand: Hotel owner and operator Minor Hotel Group (MHG), has bought six hotels totalling more than 1,600 keys in Brazil and Portugal.

Thailand: Hotel owner and operator Minor Hotel Group (MHG), has bought six hotels totalling more than 1,600 keys in Brazil and Portugal.

It has also acquired the Tivoli Hotels & Resorts brand for Brazil. MHG says the US$190 million investment “establishes Portugal and Brazil as MHG’s two strategically-chosen countries for future expansion into Europe and South America”.

The Brazil acquisition comprises of two properties: the 220-key Tivoli Sao Paulo Mofarrej in Sao Paulo, and Tivoli Ecoresort Praia do Forte, a 287-key resort in an ecological reserve on the coast close to Salvador in Bahia. In addition to the two properties, the acquisition comprises “a strong hotel operating platform and the intellectual property rights to the Tivoli Hotels & Resorts brand for Brazil”.

The acquisition also includes four Tivoli properties in Portugal – one in Lisbon and three in the Algarve. The properties are: the 306-key Tivoli Lisboa in the capital city of Lisbon; the 383-key Tivoli Marina Vilamoura; the 196-key Tivoli Marina Portimao and the 293-key Tivoli Carvoeiro. The Portugal acquisition comprises four properties that are being leased to a third-party who owns the Tivoli Hotels & Resort brand for Portugal.

The six hotels will continue to operate as Tivoli and Tivoli Collection, the two brands within Tivoli Hotels & Resorts.

William Heinecke, chairman and group CEO of Minor International (MINT), MHG’s parent company, said: “In recent years, MINT has focused on expansion in Asia, Australia, the Middle East and Africa.  With the current portfolio already starting to bear fruit, MINT is now looking beyond for compelling opportunities that will further expand its global coverage and steepen MINT’s long-term growth trajectory.  The Tivoli Brazil portfolio not only generates immediate revenue and earnings contribution, it also allows MINT to leverage on this existing Brazil operating platform for potential expansion of MINT’s other brands and businesses into South America, and the four Portugal hotels will serve as our entry for MINT to build a strong business in Europe.”

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