Minor Hotel Group, Bangkok, has moved into two new continents through the strategic acquisition of six hotels and over 1,600 keys in Portugal and Brazil, and the rights to the Tivoli Hotels & Resorts brand for Brazil. The €168 million (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 Tivoli properties – one in Sao Paolo and one on the coast close to Salvador in Bahia, plus the intellectual property rights for the brand in the country. In Portugal, MHG has made strategic asset acquisitions of four Tivoli properties in Portugal – one in the country’s capital and three in the Algarve.
With these latest acquisitions MHG’s portfolio now includes over 16,000 keys across 125 hotels and resorts in 21 countries.
The Brazil acquisition comprises the 220-key Tivoli Sao Paulo Mofarrej in Sao Paulo, Brazil’s main economic hub and most populous city; and Tivoli Ecoresort Praia do Forte, a 287-key resort in the heart of an ecological reserve on the coast close to Salvador in Bahia.
The properties in Portugal 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 properties 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. Owners of Tivoli Hotels & Resorts brands in Brazil and Portugal have existing co-marketing and co-distribution agreements, which see a combined Tivoli portfolio of 14 hotels and over 2,900 keys in Brazil and Portugal. Tivoli is a member of Global Hotel Alliance, which three of MHG’s existing brands – Anantara, AVANI and Per AQUUM – also belong.
William Heinecke, chairman and group CEO of Minor International (MINT), MHG’s parent company, commented, “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.”