Bangkok-based Minor International, one of Asia’s largest hospitality groups and the owner of brands including Anantara, Avani, NH Hotels and Tivoli, has postponed plans to launch its first real estate investment trust (REIT), estimated to be valued at around US$1 billion.
The company cited challenging market conditions and heightened investor caution amid ongoing geopolitical tensions in the Middle East as the primary reasons for delaying the transaction.
According to company officials, concerns have emerged that investors may seek higher-than-anticipated yields from the proposed REIT, potentially impacting valuation and fundraising objectives. Speaking at an investor meeting, Namida Artispong, Head of Investor Relations at Minor International, indicated that prevailing market volatility had made the timing less favourable for a public offering.
The postponement highlights the growing impact of geopolitical uncertainty on hospitality and real estate capital markets. REITs remain an important avenue for hotel companies seeking to unlock asset value, improve balance sheets and create asset-light growth platforms. However, investor appetite for hospitality-linked assets can be sensitive to macroeconomic risks, interest rate movements and global conflicts.
For Minor International, the delay comes despite continued growth in its hospitality portfolio, which spans more than 500 hotels across Asia, Europe, the Middle East and Africa. The proposed REIT was expected to serve as a strategic vehicle for monetising hotel assets while supporting future expansion plans.
The development also reflects a broader trend across global hospitality markets, where companies are reassessing capital-raising plans amid volatile financial conditions. While the REIT launch has been deferred, industry observers expect Minor International to revisit the proposal once market sentiment stabilises and pricing conditions become more favourable.
The decision underscores how access to capital and investor confidence remain critical factors shaping hospitality investment strategies, even as travel demand continues to recover across many international markets.
source: Bloomberg
