Thai hospitality giant eyes SGX for 14-hotel, US$1b Reit listing

SINGAPORE – Thailand’s largest hospitality group is seeking to list a real estate investment trust (Reit) in Singapore before the end of 2026 to fund the development of more branded residences.

Under the plan, Thai-listed Minor International will seed the Reit with 14 hotels – 12 in Europe and two in Thailand – in a US$1 billion (S$1.27 billion) initial public offering (IPO) on the Singapore Exchange.

Minor International, which runs a portfolio of more than 600 hotels worldwide, including its flagship Anantara Hotels & Resorts, is also in a partnership to build its first hotel in Singapore; the 200-key Avani Singapore in Tanjong Pagar is expected to open in early 2027.

The 126.5 billion baht (S$5 billion) market capitalisation company also runs a network of 2,700 restaurants worldwide under its food division, which it plans to list separately in Hong Kong.

The 14 hotels identified for the Singapore Reit have delivered consistent returns for more than a decade, with the group targeting yields of at least 6 per cent to 8 per cent to ensure investor interest, The Straits Times understands.

Some of the proceeds from the SGX listing will be used to fund the expansion of the group’s emerging branded residences business.

Mr Micah Tamthai, chief operating officer of Minor Lifestyle & Real Estate, told ST during an interview on April 21 that this is an area the group sees as a higher-growth and more profitable segment than traditional hotels.

Branded residences are private homes, such as apartments, villas or condominiums, that are linked to a well-known hotel or luxury brand and managed to hotel standards.

While hotels will remain a core business, the group expects branded residences to play a much bigger role in the future, with more than 30 projects already completed and 21 in the pipeline across markets including Thailand, Indonesia, Europe and the Middle East.

That pipeline includes the Kiara Reserve, which comprises 46 condos and villas developed in the same compound as Anantara Layan Resort and Spa in Phuket, as well as Residences at Four Seasons Resort Chiang Mai, comprising 24 three- and four-bedroom condos.

The shift reflects both changing demand and stronger economics. Compared with hotels, which require heavy capital investment and typically deliver more limited returns, branded residences generate upfront sales proceeds and recurring fees when developers use Minor’s brands.

“From an investment perspective, residences are a lot more lucrative,” Mr Tamthai said, noting that the group is increasingly flipping the traditional model by building fewer hotel rooms and more residential units within the same development.

Demand has been particularly strong in resort destinations such as Phuket and Bali, where buyers – including some from Singapore – are typically purchasing second or third homes.

Units in some of Minor’s earlier developments in Thailand have sold for between US$10 million and US$30 million. Newer projects targeting a broader segment – priced between US$1.5 million and US$3 million – are also seeing strong take-up, Mr Tamthai said.

The appeal lies not just in investment returns, but in lifestyle and convenience. Branded residences offer hotel-style services such as concierge, housekeeping and rental management, and also give owners options to generate rental income when not in residence.

Mr Tamthai added that properties carrying established hospitality brands tend to command higher resale values, offering both lifestyle benefits and long-term capital appreciation, a key draw for global buyers seeking to diversify wealth into real estate.

The push into residences also supports Minor’s broader strategy to move towards an asset-light model, where it owns fewer properties outright and focuses more on management fees and franchise income.

The group currently owns and operates about 60 per cent of its roughly 600 hotels, but aims to gradually reduce this through asset recycling and Reit structures.

While the food business’ IPO may be delayed amid geopolitical uncertainty and valuation concerns, the Reit is further along and expected to proceed given the stable performance of the underlying assets, ST understands.

Asked for his views on why Minor wants to list the Reit on SGX, Mr Tamthai called the move a “no-brainer”. He said the Thai market has been flat, making it harder to achieve attractive valuations and prompting Minor to turn to SGX instead.

“The market here is more liquid. For a Reit, Singapore is the main place to go – it’s better than anywhere else,” he added.