SINGAPORE: Higher contributions by Banyan Tree's hotel investment and property sales segments have bolstered the first quarter earnings of the resort and spa operator.
Net profit climbed 12 per cent from a year ago to S$20 million - on the back of a 30 per cent increase in revenue to S$105 million.
Banyan Tree attributed the strong growth in hotel investment to the better performance of its hotels in Phuket and the Maldives.
However sales of its hotel residences dived 66 per cent to S$3.3 million from a year ago.
This was due to the lower demand for one bedroom villas.
Banyan Tree says it expects sales to pick up when an additional bedroom is added to these villas.
It is optimistic about the outlook for the global hotel industry for the next few quarters given the strong global economic growth and rising affluence in Asia.
Banyan Tree also has plans to further tap into opportunities in China.
"We're setting up the Banyan Tree China Fund which is about US$500 to 700 million in size. We'll be one of the cornerstone investors, we'll be the general partner and we will manage also under the Banyan Tree Angsana brands all the products of the fund we'll develop from greenfield or could acquire," says Ho Kwon Ping, Executive Chairman, Banyan Tree.
Banyan Tree on Wednesday also announced plans to build an exclusive vineyard resort in Mexico with a local winemaker.
It will have a 20 per cent share in the venture and will be the architect and interior designer of the US$60 million resort.
Banyan Tree will manage the vineyard resort when it is completed. - CNA/yy
Source: Channel News Asia
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