Banyan Tree Holdings

[CityFarmer]

For those vested and interested

(not vested)

Banyan Tree posts 2Q net profit higher at $1.7 mil

Banyan Tree Holdings said net profit for the 2Q ended June rose 163% to $1.7 million compared to 2Q12, mainly due to higher EBITDA from Hotel Investments and Fee-based segments as a result of higher revenue and higher other income due to compensation received for early termination of spa management contract.

In 2Q13, the group registered revenue of $81.7 million, an increase of $2.4 million or 3% compared to the same period last year. This was mainly attributable to Hotel Investments and Fee-based segments, but partially offset by lower revenue from Property Sales segment.

http://www.theedgesingapore.com/the-dail...7-mil.html

[CityFarmer]

Hmm... interesting input from his interview...

(not vested, but in watch-list)

Banyan Tree to Revive Europe, Americas resorts on recovery signs

Banyan Tree Holdings, a Singapore-based operator of spas and resorts, is seeking to expand its presence in Europe and the Americas amid signs that the economies in these markets are recovering.

The company plans to revive projects in Spain, Greece and Mexico, which it abandoned after the 2008 global financial crisis. Banyan Tree has signed two contracts to run properties in southern Spain, and is in talks to resume a couple of projects in Greece, Chairman Ho Kwon Ping said.

“We actually see Europe and America beginning to recover,” Ho said in an interview in Singapore yesterday. “In the last five years, growth was almost 100% driven by China. We had virtually no inquiries coming out of the rest of the world. But now, in the last six to nine months, we have seen a lot more interest in the Middle East, in the Americas.”

Banyan Tree is betting on a recovery as the euro area’s economy emerged from a record-long recession in the second quarter with a 0.3% expansion in gross domestic product. In the US, retail sales rose in July for a fourth consecutive month, showing American households are regaining momentum as employment climbs.

Southern Europe has become an attractive tourist destination for Europeans after the Arab Spring forced them to abandon holidays in Morocco, Tunisia and Egypt and flock to Spain, Canary Islands and Greece, Ho said.

http://www.theedgesingapore.com/the-dail...signs.html

[ngcheeki]

Here is the Interview with bloomberg after the announcement of 1HFY2013 result. From the interview, it looks like going forward there will a lot of recognition for their condotels due to the accounting rule.

http://www.bloomberg.com/video/banyan-tr...SdKEA.html

vested

[mkmk]

http://infopub.sgx.com/Apps?A=COW_Corpor...&F=1013358

UPDATE ON DISPUTE REGARDING MEYDAN MANAGEMENT AGREEMENTS

Banyan Tree Holdings Limited (the Company) refers to the announcements released on 14 November 2009 and 11 February 2010 relating to the notices of dispute and subsequent arbitration proceedings under the rules of the Dubai International Arbitration Centre ("DIAC") initiated by its wholly-owned subsidiary, Banyan Tree Corporate Pte. Ltd. (formerly known as Banyan Tree Hotels & Resorts Pte. Ltd.) (BTC) against Meydan Group LLC (formerly known as Meydan LLC) (Meydan Group) and Meydan City Corporation, for various breaches of the Hotel Management Agreement for The Meydan (HMA), as well as in respect of the Villa Management Agreement for Banyan Tree Meydan which was subsequently settled.

The Company is pleased to announce that the Arbitral Tribunal has issued an award in favour of BTC in relation to its claim for the wrongful termination of the HMA. The Arbitral Tribunal found inter alia that the HMA had indeed been wrongfully terminated, and that Meydan Group was liable for the wrongful termination, to the sum of USD 19,163,012 (approximately SGD 24,049,580) as compensatory damages, plus interest at 3% p.a. until fully paid. In addition, BTC was also awarded SGD 49,530.18 as reimbursement of expenses pursuant to the HMA, plus interest at 3% p.a. until fully paid, and as BTC prevailed in most of its arguments, Meydan Group was ordered to bear the entirety of the administrative and Arbitral Tribunal costs of the arbitration, in the sum of AED 644,000 (approximately SGD 219,797). No award was made as to legal costs as the Arbitral Tribunal considered that these were not recoverable under UAE law and the DIAC Rules.

The Arbitral Tribunals award is binding on Meydan Group.

Separately, Meydan Group has commenced three lawsuits in the Dubai Courts against: (1) Banyan Tree Hotels & Resorts Pte. Ltd. ("BTHR"); (2) DIAC and its Executive Committee; and (3) the Arbitral Tribunal, based on an assertion that the arbitration has expired.

The lawsuit against BTHR seeks a declaration that the arbitration has expired and damages for alleged breaches of the HMA. In connection with the former, the DIAC has confirmed the validity of the arbitration proceedings and that the arbitration has not expired. The claim for damages is similar to a counterclaim that was pursued by Meydan Group in the arbitration proceedings, which it subsequently abandoned. The lawsuit is currently before the Conciliation Committee of the Dubai Courts.

The Company will issue further announcement(s) in the event that there are any material developments in the matter.

Not vested.

[CityFarmer]

For those vested and interested. The Thai issue is sticky, and will not go away in near term, IMO.

(not vested)

Banyan Tree faces slowdown as Thai unrest continues

SINGAPORE — Banyan Tree, the manager and developer of premium resorts and hotels around the region, has reported a 27 per cent fall in fourth-quarter net profit after operations were hit by the ongoing political crisis in Thailand.

Profit for the three months ended December came in at S$3.7 million, down from S$5 million in the same period in 2012. Revenue was stable at S$97.9 million.

In yesterday’s earnings statement, the company noted that many countries issued travel advisories to Thailand, which affected the tourist arrivals.

“The ongoing strife in Thailand —the worst political crisis since 2010, when protests turned violent — has slowed down our business in the fourth quarter,” said Mr Ho KwonPing, Banyan Tree’s Executive Chairman.
...
http://www.todayonline.com/business/bany...-continues

[opmi]

Banyan Tree good to starting projects, but poor at completing them. Beginning to feel that they are a bit over-rated.

[yawnyawn]

From DBS Vickers's report

4Q13 results hit by Thailand’s political unrest.
Banyan Tree Holdings (BTH) reported a marginal uptick in revenues to S$97.9m. While performance was flattish, a main contributor to topline was its property sales segment, which increased 12% y-o-y.

Meanwhile, revenues from its managed and owned hotels saw an uptick of 3% y-o-y, driven mainly by stronger revenues achieved for its resorts in Maldives and Seychelles. This more than offset lower design and architectural fees from its projects in China. Groupwide RevPAR for its resorts grew by 4% y-o-y to S$199/night (on a same store basis, RevPAR grew by 11% y-o-y to S$213/night). This was driven mainly by higher average daily rates, especially at its resorts outside Thailand, while portfolio occupancy levels remained stable at c.54%.

EBITDA of S$18.7m (-24.4% y-o-y) was lower mainly due to higher expenses from its leaseback arrangement for Angsana Velavaru. As a result, PATMI came in 26.9% lower y-o-y at S$3.7m.

BTH’s performance in 2014 will continue to be driven by its Maldives resorts, which should compensate for an expected weak outlook for its Thailand operations. We note that Bangkok only accounted for <10% of its topline, which we believe impact of a direct impact from a further deterioration in the current political stalemate to be manageable for the group

I'm quite surprised to read that the occupancy level is at 54%. I believe hotels with well managed brands often achieved occupancy level in excess of 80%. At 26.4x earnings and 0.9x book value, i don't think there is any MOS to it.

[greengiraffe]

Banyan Tree search for sun ends with $11.5m deal

LISA ALLEN THE AUSTRALIAN MAY 22, 2014 12:00AM


SINGAPOREAN hotelier Banyan Tree Group has ended its search for an iconic Australian site to build a luxury hotel, buying on the Gold Coast at a premium.

The Asian hotel giant, which operates more than 30 global properties, has long targeted Australia to develop a five-star resort hotel.

In an aggressive play, it has paid a hefty $11.5 million for two beachfront blocks with views from Tweed Heads up to North Stradbroke Island, even though the site does not have development approval for a resort.

Banyan Tree plans an ultra-luxe hotel and serviced apartments on the site north of Q1, local sources noting that under the council’s new planning policy there is no height limit on the site.

Banyan Tree’s development would be produced under a new brand it hoped to introduce to Australia and it would be aimed at wealthy Chinese tourists, sources said.

The hotel and serviced apartment tower will be the first built on the Gold Coast since southeast Queensland was crippled by the global financial crisis in 2008.

Banyan Tree Hotels & Resorts has been scouring Australia for a site for several years, with its chief executive Abid Butt confirming to The Australian last year that it was negotiating to build a resort in Western Australia’s Margaret River region. “This is one of the best prices for a resort site on the Gold Coast in years,’’ said the site’s selling agent, Roland Evans of Canford Property Group.

“The development will have views of the ocean and also have views of the Gold Coast hinterland.” The site is about 50m from the new light-rail station.

It is understood Banyan Tree hopes to start building next year.

The vendor of the 971sq m beachfront site fronting 158 and 162 The Esplanade was AMP Capital Investors. The block sold for $7.1m in 2010.

Apart from extensive interests in China, Banyan Tree operates resorts in India, Mexico, the Middle East, Thailand, Vietnam and the Seychelles. Banyan Tree sold its only Australian holding, the Angsana Palm Cove resort north of Cairns, earlier this year.

Meanwhile, a Chinese investor fronting the Xian-based Xian WenHua Industrial Company, is believed to be buying the former home of the Star of the Sea Convent in Southport for more than $25m.

It is understood the company plans to transform the 1.5ha site into a resort and lifestyle hub with high-rise towers and shopping and dining precincts.

[greengiraffe]

Singapore’s Banyan bull Ho Kwon Ping keen to get back on block
LISA ALLEN THE AUSTRALIAN MAY 29, 2014 12:00AM

SINGAPOREAN luxury resort owners will visit Brisbane and the Gold Coast in the next few weeks, declaring the time is ripe to buy and develop opulent hotels and serviced apartments in southeast Queensland.

Ho Kwon Ping, a journalist turned hotelier who founded ­Banyan Tree Hotels and Resorts, which controls more than 130 properties including hotels, spas, golf courses and retail galleries from Mexico to the Seychelles, will scour Brisbane and the Gold Coast for sites for the brand, which seeks to re-establish itself in Australia.

But the executive chairman of Banyan Tree, worth about $US345 million ($372m), according to Forbes, has dismissed talk of buying two heritage-listed sandstone buildings slated for a hotel conversion in Sydney — even though the properties in the heart of the financial district have attracted international interest, particularly from Asian groups.

“In a place like Australia where renovation costs are very high we try to stay away from heritage buildings,” Mr Ho told The Australian. “People always end up with a lot of unpleasant surprises. We are experienced hoteliers (but) we are just beginning to learn about regulations in Australia.’’

Mr Ho is more bullish on new builds. He has just bought a site on the Gold Coast for a $US100m 40-level hotel and serviced apartment tower of up to 150 keys, which Banyan Tree will fund via bank financing and equity.

And he is looking for more sites. “We are likely to come out in the next few weeks on the Gold Coast and Brisbane around that area (to look for more sites.)

“I have been looking very hard in Sydney (but) I have turned down a number of sites there.”

In a surprise move, the opulent new build on the Gold Coast, the first luxury resort property to be built in southeast Queensland since the global financial crisis, will not be branded a Banyan Tree.

Mr Ho revealed the company would soon announce a new global brand. Along with properties being built in Phuket, Indonesia’s Bintan Island, Sri Lanka and China, the Gold Coast property will be launched under a yet-to-be-­revealed new moniker.

“We will use this new Gold Coast property as one of the ­anchors for a new brand we are ­announcing on June 5,” Mr Ho said. “We want to have a critical mass of four or five (hotel projects) before we announce the brand and the project itself.

“It will be a sister brand to ­Banyan Tree, it will be very design-oriented … but it is going to be quite different (from Banyan Tree), otherwise why roll out a new project?”

Banyan Tree is presently designing the Gold Coast hotel and serviced apartments and knows the local council is about to launch a new development plan.

“We will be applying when the plan is approved,” Mr Ho said.

Banyan Tree started developing in the inner-Sydney suburb of Leichhardt several years ago.

In February, it sold the Angsana Resort and Spa Great Barrier Reef at Palm Cove to a consortium of suite owners.

It was also continuing to negotiate to acquire a management contract for a resort in Western Australia’s scenic Margaret River region, a deal flagged by The Australian last year, Mr Ho confirmed.

“We don’t own anything (built resorts) in Australia, we want to come back into the market — we think the timing is pretty good,” Mr Ho said.

Meanwhile, the NSW government continues to field interest in the sandstone buildings in Sydney’s Bridge Street.

Singapore’s Royal Group, the US-based Travel Corporation and Eureka Funds Management are said to be jockeying for the buildings in the city’s financial district. The state government received 42 registrations of interest to buy the Lands Building and the Education Building.

[opmi]

Sell Maldives buy oz?


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