Banyan Tree’s Q4 net profit jumps 6-fold

Mainboard-listed luxury resorts operator Banyan Tree said its fourth-quarter net profit increased by six-fold to S$19.5 million.

This was mainly due to gains on the sale of Dusit Laguna Phuket in October last year.

However, the higher profit was partially reduced as a result of the adverse impact of the anti-government riots in Bangkok in April and May last year on its Hotel Investments and Property Sales segments.

As a result, revenue for the three months to December fell 13 per cent to S$82 million.

Going forward, Banyan Tree said it expects to open five new resorts in the next 12 months.

These comprise three in China, one in India and one in Mauritius.

It’s also launching an estimated 11 spas under management in the next 12 months.

Banyan said 2011 will be a challenging year, given the continuing unstable Thai political situation coupled with the weaker European economy where a significant portion of its guest markets are from.

It said it hopes to tap into new growth markets for its guest mix such as China to compensate for the weaker European market.

Source : Channel NewsAsia – 24 Feb 2011

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