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.

The slowdown in business in Thailand in the final part of 2013 was a reversal from the trend earlier in the year, with resorts there performing strongly in the first nine months, the company said.

“If not for the Thai political upheaval in November last year, which affected tourist arrivals, our operation in Thailand would have ended (2013) even stronger.”

For the full year, net profit was 22 per cent higher at S$18.1 million, with revenue up 5 per cent at S$356.1 million.

The company expects the political uncertainties to continue to affect operations in the near term, saying forward bookings in the first quarter for hotels owned in Thailand are 11 per cent below the same period last year.

However, on a more upbeat note, the company said it would benefit from the continuing recovery of economies in the United States and Europe, and an active China market. These factors should mean that operations outside Thailand continue to perform favourably, Banyan Tree said.