MAINBOARD-LISTED Banyan Tree Holdings expects full-year results to be profitable amid signs of an economic recovery, despite a challenging first six months.
For the third quarter ended Sept 30, its net loss narrowed to $968,000 compared to a loss of $4.88 million in Q308. Revenue dropped 14 per cent to $71.2 million on the back of lower revenue from its hotel residences and property sales segment.
‘The results achieved in the 3rd quarter confirmed our belief that the worst is clearly behind us. We are certainly more upbeat about our prospects as the global economy recovers,’ said Ho Kwon Ping, executive chairman of Banyan Tree.
The group has also chalked up savings of $36 million so far this year through cost-cutting measures. It is targeting savings of $50 million for the full year. Revenue for its hotel investments segment was marginally higher by 3 per cent at $38.4 million in Q309, thanks to its resorts in the Maldives, China and Morocco.
Its resorts in Thailand saw revenue drop by 10 per cent year-on-year and occupancy was one percentage point lower at 53 per cent. However, occupancy for its resorts in Thailand was up nine percentage points quarter-on-quarter.
The group also said that the rate of decline of its forward booking reservations has slowed quarter-on-quarter, a trend that continues into November where forward bookings have improved to almost pre-crisis level.
Revenue for hotel residences and property sales was 49 per cent lower year-on-year at $13.1 million. Hotel management revenue was up 61 per cent to $7 million due mainly to $1.6 million received in compensation fees as well as higher management fees. During the quarter, it signed three new management contracts for hotels in Portugal, China and Morocco.
Its spa revenue decreased by 7 per cent to $6.5 million. Its shares closed at 76 and a half cents in trading yesterday, up two and a half cents.
Source : Business Times – 13 Nov 2009
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