Minor Hotels is exploring the creation of a Real Estate Investment Trust (REIT) with an estimated asset base of $1.5 billion (€1.27 billion), which could potentially include selected properties from its NH portfolio. The Thai hotel group disclosed the possibility in the prospectus for its takeover bid to delist NH Hotel Group (now rebranded as Minor Hotels Europe & Americas), according to reports from Expansión.
While no final decision has been made on which assets might be included in the REIT, the move could form part of Minor’s broader strategy to optimise its real estate portfolio and reduce net financial debt, which currently stands at 0.6 times EBITDA.
The Spanish securities regulator CNMV has now approved Minor’s takeover offer for the remaining 4.135% stake in NH that it does not already control, paving the way for NH’s exit from the Madrid Stock Exchange after nearly 30 years of trading. Minor raised its offer last month to €6.51 per share, a 45% premium on the €4.50 initially proposed two years ago, and close to the midpoint of the €6.04–€7.08 valuation range determined by EY.
NH reported a strong performance in the first half of 2025, with revenues rising 5% year-on-year to €1.206 billion, driven by improved occupancy levels (up to 69%) and a higher average daily rate of €147. This led to a 6% increase in RevPAR (Revenue per Available Room).
Net profit for the period reached €112 million, up 58% year-on-year, bolstered by €26 million in capital gains from the sale of two hotels in Portugal and Germany. Excluding these one-offs, recurring profit totalled €86 million, up 30% from the previous year.
As part of its financial optimisation strategy, NH reduced its net financial debt to €114 million as of 30 June, compared to €244 million at the end of 2024, aided by asset sales, organic cash generation and €78 million in capital expenditure.
Looking ahead, NH may reduce its total number of hotels from 346 to an estimated 335 by 2028 under its base case scenario, due to more expected closures than new openings. However, under a growth scenario, the group projects EBITDA gains of €4 million in 2026, €16 million in 2027, and €30 million in 2028, from the launch of yet-to-be-identified hotels.
NH is expected to complete its delisting from the Spanish stock exchange by late September 2025.
