Minor International acquires NH Hotels: Strategic Leap or Calculated Gamble

By early 2025, Minor International (Minor), a Thailand-based conglomerate, had seen both the downside and upside of its largest hotel acquisition, the Spanish NH Hotels (NH). Acquired in 2018, NH had provided Minor the requisite scale and outreach to become a global competitor in the hotel industry.

However, the acquisition had driven the company to eight quarters of revenue losses during the COVID-19 pandemic, when occupancy rates plummeted. NH experienced severe financial stress because of its numerous fixed lease obligations, and Minor experienced a frightening increase in debt-to-equity ratio while its revenues fell by 68% in 2020.

To cope, Minor launched a multi-pronged recovery strategy that focused on deferring lease payment deadlines, improving liquidity, restructuring debt and boosting cash flow. The company also executed refinancing initiatives and strategic property renovations to boost value and achieve long-term financial profits.

By 2024, Minor experienced a significant revenue recovery; gross earnings reached US$4.02 billion, nearly 4.5 times its 2021 revenue of US$910 million, and net profit jumped by 16% to US$156 million.

Minor embarked on a new ambition of increasing its hotel count from 560 to 800 properties by 2027, and 1000 properties over the next five years. Should Minor push for aggressive global growth, or prioritise stability and profit optimisation? What could Minor do next to solidify its vision of becoming a truly global hospitality leader?

The case helps students (1) understand the dynamics of a large-scale merger and acquisition (M&A), (2) integration strategies of an acquisition, (3) analyse typical risks associated with an acquisition and (4) the strategies companies often implement to mitigate these risks, (5) understand how acquisitions combined with global vs local strategies enable growth.

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