Minor Deals To Expand In Europe, Africa

-- Hotels, 6/1/2008

Minor International, Bangkok, is spreading its wings to Europe and Africa with two recent deals—a joint venture with Kempinski Hotels & Resorts and a 50% stake in a Tanzania-based luxury safari operator, Elewana Afrika.

In the first deal, Minor's Anantara Hotels & Resorts will seek out development opportunities in Asia (with the exception of China) on behalf of Kempinski and offer technical service skills which match the brand's growth strategy. In turn, key locations being tapped for expansion by Anantara Hotels & Resorts include the Mediterranean basin, where Kempinski has a selection of existing properties and a strong depth of experience. Kempinski will help source deals across Europe for Anantara. The first deal sourced through the JV is expected to be announced within another three or four months and fees will be shared.

Guestroom at the Arusha Coffee Lodge, part of the existing Elewana Afrika portfolio.

Michael Sagild, COO Minor International added “Within the growth plans of Anantara Resorts, a central component is a strategic partnership which allows us to have local knowledge and a significant skill set in Europe and beyond,” says Michael Sagild, COO of Minor International. “This will provide economies of scale, development and technical service efficiencies while ensuring insightful knowledge of particular destinations.”

Over the last number of years, Anantara Hotels & Resorts has developed a close association with the group through the creation of Anantara Spas in Kempinski hotels in the Middle East, Africa and China. The partnership has resulted in the honing of a skill set which is highly complementary and beneficial to both parties.

Over the next 10 years, Anantara expects extensive development to include at least 40 resorts in Asia, Africa, the Middle East and indeed Europe. “The intention is for both companies to leverage and maximize their existing ownership network to propose a second brand to an owner,” Sagild says. “Tourism development is really doing well at the moment and we foresee great opportunities in Thailand, Vietnam, Malaysia and the Indian Ocean.”

Currently, both groups are pursuing aggressive development strategies “and such a joint venture provides assistance to ensure we can achieve our expansion goals—quickly, cost effectively and, most importantly, through the use of sound local knowledge,” Sagild says.

Minor's US$12 million deal with Elewana Afrika comes during a strong expansion phase that will see the addition of six new properties with 165 rooms to the portfolio by 2011. Elewana's principal promoter, Karim Wissanji, will retain a 50% stake and remain as CEO.

Elewana's near-term plan includes the development of a new property near the Ngorongoro Crater, a World Heritage site renowned for its unique game viewing, and three high-end, smaller properties in unique destinations in Tanzania. Elewana's expansion plans also include a new city hotel in a historic building in Stone Town, Zanzibar. In addition, a luxury beach facility is planned on the private island of Kiweni located in the Zanzibar Archipelago.

In the longer term, expansion into Kenya is planned as well as other 'experience' destinations both within and outside of Africa.