Minor International pays $225 million for increased stake in spanish company NH Hotels

by | Jun 4, 2018 | General News, News

Some experts predict that this move may begin the long-predicted consolidation of the Spanish hotel industry

The hospitality group Minor International has announced that it is set to become the second largest shareholder in Spain’s NH Hotel Group, following an agreement that will see it buy an 8.6 percent stake from Oceanwood Capital, the London-based hedge fund.

All told, this is a $225 million, and once it is completed it stands to take Minor International’s stake to 9.7 percent, with plans calling for it be wrapped up by June. The single biggest individual shareholder, however, is still HNA Group, although in recent months HNA Group has actively been working to sell off its own 30 percent stake in the company. What All of this means is that NH Hotels is likely to have a significantly altered set of financial backers in the somewhat near future.

NH Hotels Reaction

NH Hotels offered only a small comment as a reaction to this news, saying, “NH Hotel Group does not intend to make any additional comments regarding this agreement reached between Oceanwood and Minor Hotels. We remain focused on our strategic business plan.”

Once it has completed the sale of 30,000 of its shares to Minor International, Oceanwood will, however, maintain a very small stake, according to the most up-to-date information. Oceanwood first came to prominence as a shareholder in 2016 after it fought a battle with HNA over the make up of the NH Hotels board at that time. Oceanwood and another shareholder Hesperia believed that HNA had a conflict of interest following its purchase of Carlson Hotels and its 51.3 percent ownership stake in competitor Rezidor Hotel Group. Eventually though, shareholders forced out the CEO and four of the other board members that were sitting at that time.

More About Minor International

For those who are not familiar, it is important to note that Minor International is a Thailand-based company that has gradually expanded its own corporate footprint across Europe in recent years. In 2016 the company bought Portugal’s Tivoli Hotels & Resorts for $344 million, and in December 2017 it also purchased a majority stake in upmarket UK restaurant group Corbin & King.

The company’s CEO Dillip Rajakarier called the NH Hotels deal a “significant milestone”.

“Over the past few years, NH Hotel Group’s board of directors and management team have re-invigorated the business and delivered strong business performance in line with its five-year strategic plan,” Rajakarier said.

“As a key shareholder in the business, we look forward to supporting the management team as a strategic shareholder to continue this success and build long-term shareholder value for NH Hotel Group and its shareholders including Minor International.”

The following projects are currently underway by NH Hotel Group:

NHow – London

NHow Rome

NHow Amsterdam Rai

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