Minor International targets branded residences for 30-40% of revenue in asset-light shift

SET-listed Minor International plans to grow branded residences to 30-40% of total revenue over the next few years, more than doubling the current share. The move is part of the company's pivot to an asset-light business model.

SET-listed Minor International wants branded residences to contribute 30-40% of revenue over the next few years, more than double the current proportion, as part of its shift towards an asset-light business model.

The Bangkok-based hospitality and retail conglomerate, led by chairman and chief executive William Heinecke, is placing increasing emphasis on the branded-residence segment. The company currently generates roughly 15% of its revenue from such properties, according to its latest investor materials.

Branded residences — luxury homes that carry the name of a hotel group or lifestyle brand — have grown in popularity across Asia as developers seek to monetise their brand equity without holding large property portfolios. Minor International operates hotels and resorts under brands such as Anantara, Avani, Oaks and NH Collection, and has extended several of those names into residential projects.

The group did not disclose a timeline for hitting the new target or detail which specific projects would drive the increase. However, its asset-light strategy involves expanding through management contracts and licensing agreements rather than direct ownership, a model that reduces capital expenditure and lifts return on equity.

Minor International's branded-residence push mirrors a broader industry trend. Global hotel groups, including Marriott International and Accor, have expanded their branded-residential offerings in markets such as Thailand, Singapore and the Maldives, where affluent buyers are willing to pay a premium for a recognised hospitality brand and the associated services.