MINT’s Strategic Plan for ฿15Bn Sales and Leaseback of Hotel Transactions in Europe

Minor International Public Company Limited (MINT) has been one of the most anticipated stocks in the hotel sector to rebound this year in line with the economic recovery in Thailand and Europe.

 

Mr. Chaiyapat Paitoon, Chief Strategy Officer of Minor International Public Company Limited (MINT), stated through Kaohoon JorTalad Program on March 22, 2021 that the company is moving in a positive direction since the announcement of vaccine rollout last year, raising investors confidence for an economic activities, tourism as well as hotel business.

 

However, there are still uncertainties for a short-term outlook such as the second wave or third wave of the coronavirus outbreak, leading to another lockdown, which is inevitable before a widely vaccine rollout.

 

Mr. Paitoon believed MINT has bottomed out last year and the utilization of its new strategic plans has lifted MINT’s performance continuously. The result of MINT’s recovery should be clear once the vaccine rollout becomes widely used.

 

As for the sales and leaseback of 4-5 hotels in Europe for 10-15 billion baht, Mr. Paiboon stated that the company has signed MOUs regarding the market and is in a process of due diligence. The deals are expected to complete within the second or third quarter of this year. The sales is to support the uncertainties in which the company will utilize the proceeding for debt repayment and increase liquidity.

 

More importantly, Mr. Paiboon affirmed the importance of sales and leaseback strategy by indicating that the company would continue booking revenue recognition from the aforementioned hotels, along with maintaining the company’s branding in the market. Only downside to this strategic plan is the lower earnings due to the leasing agreement.

 

In addition, Mr. Paiboon stated that the reopening of tourism should be made as soon as possible and allow vaccinated tourists to visit the country without quarantine. To achieve this level, vaccination in Thailand must be done extensively.

 

The share price of MINT closed at ฿32.00/share, increased ฿1.00/share or 3.23% with a trading value of 1,045 million baht. MINT rose nearly 140% from its low at ฿13.49/share in March 2020 when the coronavirus outbreak was at its peak.