SINGAPORE (THE BUSINESS TIMES) – Resorts operator Banyan Tree Group on Tuesday (Aug 9) posted a $514,000 net profit for its first six months to June, reversing a year-ago $42.6 million loss, as the rising tide of travel lifted all its business segments.
H1 revenue more than doubled to $118.6 million, with the hotel investments segment seeing a $38.3 million rise in revenue to $60.8 million as international borders reopened. Revenue for the group’s hotels in the Maldives rose by $8.7 million from the previous year.
In the fee-based segment, revenue was $4.8 million higher due to strong performance from Banyan Tree’s managed hotels in Mexico, as well as hotel recovery in Asia. But China is an exception, as the government’s sporadic lockdowns hit business operations, the company said in its earnings.
Over in the property sales segment, revenue was $19.1 million higher as 65 units were recognised – as opposed to 11 in the year-ago period – including from the Skypark 1 condominiums, which were substantially completed and handed over to buyers.
Excluding a one-off $15.4 million gain on the expiry of derivatives for convertible bonds, Banyan Tree would have posted an $11.1 million core operating profit for the six-month period. This is in contrast to the $4.8 million core operating loss a year ago, which excludes a fair value loss of $10.4 million and write-down of $1.2 million in property development costs.
In the next 12 months, Banyan Tree expects to open 14 new hotels and rebrand two hotels through conversion. Over the next three years, 50 new hotels are expected to open, in line with the company’s ambition to double its operating footprint.
Shares of Banyan Tree were trading up 0.5 cent, or 1.7 per cent, at 30 cents at 9.29am on Wednesday, after its results announcement.