BANGKOK — Thailand-based hotel operator Minor International on Wednesday announced the sale of two hotels in Portugal for 148 million euros ($174 million), shoring up its finances in an industry hit hard by pandemic-related travel restrictions.
The two upscale Tivoli hotels in the Algarve region on Portugal’s southern coast have been purchased by Azora European Hotel & Lodging, an investment fund managed by a Spain-based real estate investment manager. A Minor subsidiary will continue to operate the hotels under a 20-year contract with options to extend for a total term of up to 30 years.
“The transaction further enhances the overall return of the Tivoli portfolio,” said Minor CEO Dillip Rajakarier.
Concha Osacar, an Azora founding partner, expressed confidence in the industry’s outlook and indicated that more deals are on the way. “We have a strong conviction that there will be a strong post-pandemic recovery in the European hotels and leisure sector,” Osacar said.
Minor has a portfolio of more than 520 hotels and short-term rental apartments in 55 countries. It reported a 21.4 billion baht ($651 million) loss for 2020 amid the coronavirus pandemic, compared with a 10.7 billion baht profit the previous year.
The company recently disclosed a sale and leaseback deal for a Barcelona hotel.