Friday, August 16, 2013

Banyan Tree

Banyan Tree: 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. This comes amid more interest and inquiries on the Middle East, in the Americas. The euro area’s economy emerged from a record-long recession in 2Q13 with a 0.3% expansion in GDP. In the U.S., retail sales rose in July for a fourth consecutive month, showing American households are regaining momentum as employment climbs. Meanwhile, 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. Banyan Tree’s 2Q13 profit more than doubled to $1.7m, while revenue climbed 3% to $81.7m. The stock has climbed 20% in the past year, compared with the 19% gain in the Bloomberg REIT Hotels Index. The STI rose 4.3%. Banyan Tree is a manager and developer of resorts, hotels and spas mainly in the Asia Pacific, with 36 resorts and hotels, 73 spas, and three golf courses. Locations include Thailand’s Koh Samui, Seychelles and Cabo Marqués in Mexico. The resort operator will open a Banyan Tree property in Morocco next year, two more in China and one in Kerala in Southern India. It will open another nine properties in China in 2015, a country where locations include Lijiang and Hangzhou, a resort built as a water village inside a wetland reserve. A night in a villa with a water view costs Rmb3,500 (US$572).

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