Thai hotel group Minor International reportedly plans to launch a real estate investment trust (REIT) next year to halve its liabilities of over $7bn, reported Bloomberg.

The company is relying on a robust rebound in tourism to achieve a double-digit increase in profits.

It operates more than 500 hotels across 57 countries and 2,600 restaurants in 24 nations and intends to reduce liabilities by redeploying some properties into a REIT.

Minor International chairman Bill Heinecke said that the move will significantly reduce leverage and have a substantial impact on the company.

Heinecke did not specify which hotels would be included in the planned REIT.

Minor anticipates a robust performance in this year’s final quarter, which is expected to continue into the first quarter of 2025, as the peak holiday season approaches.

Despite a slowdown in China, Heinecke expects strong growth in other regions, particularly the Middle East and Europe, with minimal disruptions over the coming six months.

Heinecke told Bloomberg Television: “We’re seeing the whole travel and tourism recovering quite quickly. Rates are much higher, whether airline fares or hotel room rates, and we’re seeing occupancy slightly higher too.” 

Minor’s shares experienced a significant increase, rising by as much as 7.8%, marking the largest intraday gain in over two years. Meanwhile, the benchmark Thai stock index saw an increase of 1.3%.

Despite currency fluctuations affecting net income in the third quarter, Minor's core profit growth continued to be strong, according to Heinecke.

Heinecke further added that Minor is advancing its expansion plans across the globe, focusing on regions where it currently has no presence.

The company may announce its entry into Japan early next year. In 2026, it plans to open a hotel in Singapore.