Banyan Tree stands strong

Banyan Tree stands strong

Profit up 39% in spite of global slowdown

 

 

Cheow Xin Yi

cheowxinyi@mediacorp.com.sg

 

So far, so good. The slowing global economy appears to have had only a modest effect on Banyan Tree Holdings’ bottomline to date.

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In the three months to end-March, it posted a robust 38-per-cent rise in profit to $15.4 million from a year earlier, largely driven by hotel investment and sales of luxury villas, town homes and bungalows boasting its prestigious brand.

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“For the hotel business, there is a slight downturn in the corporate business but this has been more than offset by the increase in leisure business,” said Banyan Tree executive chairman Ho Kwon Ping.

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Banyan Tree is a leading manager and developer of premium resorts, hotels and spaces in the Asia-Pacific, with 23 resorts and hotels, 64 spas, 65 galleries and two golf courses.

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First quarter revenues rose 34 per cent to $140.3 million. However, expenses grew at a similar pace, by 32 per cent.

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Mr Ho said he expected both its hotel business and property sales to remain strong for the balance of this year.

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“We do not seem to be affected by the sub-prime crisis and we remain optimistic that this year we should be able to perform quite well,” he said.

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Mr Khoo Chen Hsung, research vice-president at CIMB-GK, said the result was above his expectations and “very encouraging”.

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Meanwhile, Banyan Tree also announced that it signed a new contract with Galaxy Entertainment Group, Asia’s second-biggest listed casino operator, to manage a resort in Macau.

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Banyan Tree will design and manage 254 rooms in the resort, which is expected to open in around 2010.

 

Source: Today Newspaper

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