The National Securities Market Commission (CNMV) halted NH Hotel Group trading on Monday as Minor International, the majority owner with a stake exceeding 94 percent, did not disclose clear motives for acquiring additional shares at a price not above 4.5 euros per share within a 30-day window. Minor International released a brief statement on its website, while the regulator paused trading of hotel stock around midday pending further information and did not explicitly refer to Minor’s action. A subsequent statement on Tuesday afternoon helped dispel some uncertainties. Spanish market authorities indicated that the reasons outlined by Minor could hinder minority investors from properly assessing its intent.
CNMV reported a mid-session suspension around 12:00 pm on Monday. At that moment NH’s shares traded at 3.62 euros, up 0.97 percent, with a market capitalization near 1.3 billion euros. In conjunction with its results for the first quarter, NH Hotel Group noted that the January-March period was the weakest due to seasonal factors, reporting a loss of 36 million euros. Yet revenues rose to 407 million euros in the first quarter, up 74.2 percent from the same period in 2022, a year affected by Covid-19 Omicron restrictions. With this revenue level, NH nearly matched 15.4 percent of its Q1 2019 revenue, before the pandemic disruption.
Following the results presentation, Minor announced on its website the intention to buy more NH shares on the market at a price not exceeding 4.50 euros per share for a period of thirty days. Minor stated that it does not plan to acquire additional NH shares in the market beyond this window. The group’s chief executive officer, Dillip Rajakarier, commented that the decision to acquire more shares reflects confidence in NH’s ability to create future value through near-term synergies.
The Thai group stressed that its aims are to strengthen the company’s actions, though the exact purpose remains unclear. The reasons provided by Minor were described as broad, with possibilities including potential accounting or financial motives. Analysts in the market also suggested that it could be a move to attract additional investors, according to Joaquín Robles, an analyst at XTB, who offered his perspective on the situation.
big corporate umbrella
NH Hotel Group, a subsidiary of Minor Hotels, stands as a major player in city hotel markets across Europe and the Americas, operating more than 350 properties. Under the leadership of Ramón Aragonés, NH has collaborated with Minor Hotels since 2019 to unify their hotel brands under a common corporate framework. Minor Hotels operates in more than 50 countries worldwide and oversees a family of eight brands including Anantara, Avani, Elewana, Oaks, NH Hotels, NH Collection, nhow, and Tivoli, collectively presenting a broad portfolio.
Current liquidity for the group remains robust, exceeding 480 million euros after the voluntary repayment of 50 million euros from the 250 million euro pandemic-era credit facility in January. Net financial debt stands at 340 million euros, reflecting a modest increase of 33 million euros.
2018 offer
Minor Hotels has previously pursued NH Hotel Group with a notable bid. In 2018, the Thai group proposed a takeover at 6.3 euros per share, valuing NH at around 2.5 billion euros. Minor first entered NH in May 2018 after an agreement with the Oceanwood fund to acquire a 30 million share package, representing an 8.6 percent stake at a price of 6.4 euros per share. Subsequently, Minor expanded its stake by acquiring 26 percent of the Chinese group HNA and launched an offer for 100 percent of NH.