Under the long-term partnership, both parties intend to work together to develop and manage Banyan Tree branded hotels around the world. Banyan Tree will also have access to AccorHotels’ global reservations and sales network, as well as its loyalty programme, Le Club AccorHotels, it added.

Banyan Tree currently has 43 hotels and resorts, 64 spas, 77 retail galleries, and three golf courses in 28 countries, while AccorHotels operates in 95 countries and has stakes in more than 4,000 hotels, resorts and residences, as well as in more than 2,500 private homes.

The initial S$24 million investment by AccorHotels will give the travel and lifestyle group a stake of about 5 per cent in Banyan Tree upon conversion of a mandatory convertible debenture – a long-term security that will be automatically converted to stock at a specified date.

AccorHotels also has the option to purchase an additional stake of about 5 per cent, Banyan Tree said in the press release.

Banyan Tree Executive Chairman Ho Kwon Ping described the agreement as “transformational” for Banyan Tree and “an innovation” for the global hospitality industry.

“With the current consolidation of mega hotel companies, smaller but also global players – many family-controlled – are also seeking strategic alliances with the global giants,” he said.

“Our strategic alliance with AccorHotels allows us to remain an independent company, enabling us to continue securing hotel management agreements on our own and yet accelerating Banyan Tree’s speed and scope of expansion but with AccorHotels helping us to grow our brands around the world. ”

AccorHotels Chief Executive Officer and Chairman Sebastien Bazin said the collaboration was “a great opportunity to complement our business proposition to owners with iconic brands”.

“Banyan Tree Holdings has created key leading positions across Asia with luxury resorts, one of the fastest growing segments in the industry. We will bring scale to the network through our ability to develop and manage hotels under the Banyan Tree brands globally, hence strengthening our leadership in the luxury hotel space,” he said, adding that the group was confident that the investment would create incremental value for its shareholders.

Source : Channel NewsAsia – 8 Dec 2016

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The hospitality group said the location is just right for its new venture.

Banyan Tree has spent the past 17 years opening spas and resorts in more than 20 countries around the world.

China is a key market, with some 20 to 30 projects already signed.

However, Banyan Tree said it does not want to be China-centric, and it is open to expanding within Singapore too.

Ho Kwon Ping, executive chairman of Banyan Tree Holdings, said: “We can locate a spa in any place, and we would have long been able to justify a spa in Singapore even without a tourism boom. It is really more an issue of having the right location, and we do believe this is the best location for us that we could ever find.”

Source : Channel NewsAsia – 27 Jul 2011

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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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It made a net loss of S$9.2 million in the second quarter this year, wider than the S$4.2 million loss incurred in the year-ago period.

Banyan Tree said this was mainly due to the adverse impact of anti-government riots in Bangkok in April and May this year.

It added that this was further compounded by the Iceland volcanic ash cloud, which disrupted air travel.

Further, it said the FIFA World Cup is a traditional low season for the firm.

Banyan Tree also saw higher operating costs following the cessation of several cost cutting measures implemented last year.

Its total costs and expenses rose 17 per cent on-year to S$60.6 million.

Revenue was stable, rising two per cent to S$60.7 million for the three months ended in June.

Barring unforeseen circumstances and further impact of the Thai political situation, Banyan Tree expects the current third quarter to be better than the previous three months.

But it warns that conditions remain challenging, though it is hopeful of a strong period in the 4th quarter, which is its traditional high season of the year.

The firm added that it has received favourable response to its recently completed road show to promote its Banyan Tree China Hospitality Fund.

It anticipates a first close of the Fund in September with a Fund size of about 1 billion yuan or some US$150 million.

Source : Channel NewsAsia – 13 Aug 2010

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The subsidiary, Laguna Resorts & Hotels, is selling the “Dusit Thani Laguna Phuket” in Phuket to Dusit Thani Public Company.

The expected gain on disposal for Banyan Tree is about S$68.4 million.

The excess of the sale proceeds over the book value is expected to be S$69.6 million.

On this basis, the sale proceeds amount to about 2.7 times the book value of the hotel being sold.

Banyan Tree says the proposed disposal will reduce its exposure in Phuket, Thailand.

This, it says, is in line with its strategy of diversifying its assets away from Thailand, given the increased political risk that Thailand presents.

The firm has a heavy representation of Thai hotel properties amongst its assets.

Proceeds from the sale may be used for overseas investments, repayment of bank loans, and/or payment of dividends to shareholders.

Source : Channel NewsAsia – 11 Aug 2010

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Banyan Tree booked a net profit of S$2.97 million – a sharp reversal from the S$6.9 million loss in the same period a year ago.

For the whole of 2009, net profit came in at S$3 million. This was a 57 per cent drop on-year. Banyan Tree said the fall was due to a strong first half in 2008.

Its bottomline was also hurt by the global economic downturn and political events in Thailand.

Going forward, Banyan Tree expects the positive trend from the fourth quarter to continue into the first quarter of 2010.

It is opening six hotels over the next 12 months in places like China, Mexico and South Korea.

Source : Channel NewsAsia – 25 Feb 2010

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It said on Thursday this was achieved on the back of good revenue growth from its hotel investments and management segments, coupled with cost-cutting measures.

Overall revenue for the three months ended September fell 14 per cent to S$71.2 million. This was mainly due to slower sales from its hotel residences and property sales segments, given the slowdown in the global economy.

Executive chairman Ho Kwon Ping said the third quarter results confirmed the belief that the worst is over. He added that the firm’s hotels’ forward bookings have continued to show a positive trend.

The resorts operator expects the business of its management, spa and design income segment to grow, in line with its strategy of global expansion. It also plans to open seven new resorts and 12 new spas in the next 12 months.

Source : Channel NewsAsia – 12 Nov 2009

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Through this integrated solution, Banyan Tree will be moving away from administrative human resource processes.

Instead, it’ll embrace progressive approaches such as employee self-service to gain greater efficiency, lower costs and increase service quality.

SAP said the new solution will also allow Banyan Tree to enhance its ability to identify, nurture and retain talents within and attract new ones into the company.

Source : Channel NewsAsia – 22 Oct 2009

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The luxury resorts developer plans to use the fund-based model to develop future projects in markets such as China and the Philippines.

Banyan Tree is tapping into its first real estate investment fund to finance the development of its Laguna Hue project in central Vietnam.

Its executive chairman said funding for the project will come from its Banyan Tree Indochina Hospitality Fund, which has raised about US$283 million.

Phase one of the project will cost about US$200 million and is expected to be completed in 2011.

Ho Kwon Ping, executive chairman, Banyan Tree, said: “If everything goes well, the world economy and our residential sales projects go well, we hope to start on phase two before phase one actually opens. The plan is still to have a relatively sequential development of the whole project.”

Banyan Tree said the anchor investors of the fund include some based in the Middle East and Hong Kong. Each anchor investor, including Banyan Tree, has pumped in US$50 million into the fund. The remaining US$83 million were contributed by other parties.

The resort developer remains upbeat about the outlook for the global tourism sector.

Mr Ho said: “Over the next 20 years, the number of people from China and India alone, leaving the developing world, who are going to travel the world, is going to be unprecedented.

“So if you take that large macro view and try to ride through all the crises which are going to come, my view is, fundamentally, this is going to be a huge growth business.”

Mr Ho said the company is also looking at other opportunities in central America. But those plans will be put on hold, given the current economic environment.

Source : Channel NewsAsia – 6 Aug 2009

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The phase one development of its US$900 million beachfront project Laguna Hue will commence on Saturday with a groundbreaking ceremony.

The Singapore-listed company raised US$283 million for the project through a real estate fund established in 2008.

When the first phase of the 280-hectare project is completed in 2012, there will be two resorts — an 18-hole golf course designed by British golfer Nick Faldo, and residential apartments for sale.

When fully completed, the project will add five more resorts as well as convention and shopping facilities.

Banyan Tree aims to replicate the success of its flagship Phuket resort, and gain a foothold in the growing IndoChina tourism industry.

Laguna Hue will be the largest hospitality investment by a Singapore-based company into Vietnam.

Executive chairman, Banyan Tree Holdings, Ho Kwon Pin, said: “We see the market for Laguna Hue to be very similar to the market for Laguna Phuket. There will be guests from Asia, like China, Japan, Hong Kong, and a lot from Europe also.”

Banyan Tree said both resorts in Vietnam and Phuket will leverage on each other to create a stronger brand alliance such as in destination cross-marketing, events, and sales distribution.

The company said the economic crisis turned out to be a blessing in disguise for the project.

Ho said: “The global downturn affected the speed of our fundraising for the US$300 million by a few months, but at the same time, we’re building now because construction costs are a lot lower.

“By the time the Banyan Tree and the Angsana Hotel, which is phase one of the project, open, that will be about two years from now. We think that’s the time the world economy will be going strong, and we will be riding the wave, so we think the timing is very good.”

Laguna Hue is an hour’s drive from both Danang and Hue International Airports.

The location offers a unique attraction with two nearby UNESCO world heritage sites, Hoi An and Vietnam’s ancient capital of Hue. The development is expected to generate some 6,000 jobs for the residents of Hue and its neighbouring provinces.

Over the next few quarters, Banyan Tree will continue to push ahead with its expansion plans, with resort and hotel openings expected in Hangzhou, China; Bali, Indonesia; Ras Al Khaimah, UAE and Acapulco, Mexico.

Source : Channel NewsAsia – 31 Jul 2009

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