Banyan aims to double its operating footprint in the coming three years by opening 50 new hotels
Resorts operator Banyan Tree Holdings has reported earnings of $514,000 for 1HFY2022 ended June, reversing from a loss of $42.6 million in the year-earlier period.
The company reported a revenue of $118.6 million, up 110% y-o-y, as business improved with the pandemic easing and holiday makers back.
The company’s “core operating profit” in the same period was $11.1 million versus a loss of $4.8 million. This accounting line excludes one-off non-cash items such as gain on expiry of derivatives for convertible bonds, fair value loss and write-down of properties.
Besides better revenue from its resorts operations, the company enjoyed better sales for its branded residences and extended stay segments as well.
In 1HFY2022, the company took over management of four hotels – Homm Patong Phuket (Thailand), Dhawa Yura Kyoto (Japan), Garrya Nijo Castle Kyoto (Japan) (picture) and Buahan a Banyan Tree Escape (Indonesia),
These moves are part of the company’s bid to expand its portfolio across more locations and via various new brands, so that it can target different markets while tapping operational efficiency.
Banyan expects to open 14 new hotels and rebrand through the conversion of 2 hotels in the next 12 months.
Over the next 3 years, 50 new hotels are expected to open in line with the company’s ambition to double its operating footprint.
Banyan Tree shares closed at Aug 8 at 30 cents, unchanged for the day.