Banyan Tree sees profits rise, enters Turkey

Singapore – Banyan Tree Holdings, which went public last year, has reported a 55% increase in profit after taxation to S$23.9 million for the first half of 2007.

Revenues rose 23% to S$187.9 million, largely driven by its hotel operations.

Executive Chairman of Banyan Tree, Mr Ho Kwon Ping, said recent launches of its Banyan Tree Hotel Residences in five locations (Phuket, Lijiang, Bintan, Seychelles and Bangkok) have seen “encouraging responses which we believe will translate into sales in the second half of the year”.

The group recently signed an agreement to buy five million sq ft of adjacent prime land to Laguna Phuket, where it had its beginnings as a brand. It plans to develop the site, 19% the size of Laguna Phuket, and expects revenue contributions of about S$400 million.

It reports healthy bookings across its hotels. Banyan Tree Lijiang, which opened October 2006, saw a record 79% occupancy in June 2007 while average rates remain above S$550.

Banyan Tree Seychelles has expanded by 13 villas to a total of 60; the rebranded Angsana Velvaru, Maldives, has been renovated in time for the coming high season; Banyan Tree Madivaru, Maldives, opens this month; and the group has acquired seven Riads (traditional Moroccan houses) in Marrakech and in Essaouira.

These will form the Angsana Riads Collection and are expected to be launched by third quarter 2007.

In Bahrain, the owner of Banyan Tree Al-Areen has decided to make the resort a “dry” hotel. “This will limit the ability of the resort to attract a greater number of guests. This issue is currently being discussed with the owner,” said the group.

Looking ahead, the Singapore-based group which now owns/manages 20 resorts and hotels, 53 spas, 62 retail galleries and two golf courses, remains optimistic.

It cites a strong pipeline of new projects opening over the next two years, plus steady contributions from existing hotels which it says will augur well for its hotel investment and management segments.

Among this is a new Banyan Tree in Turkey, signed yesterday. Banyan Tree Bodrum, on the northern coast of the Bodrum Peninsula, is the group’s first foray into the country.

Measuring 18.5 hectares in size, the terraced site will feature an all-pool villa resort and branded residences all of which will have views of the Aegean Sea and are backed by dramatic cliff terrains. The resort will also include a 4,000sqm spa facility.