SINGAPORE (May 12): Banyan Tree reported 1Q earnings more than doubled to $1.2 million from $0.5 million a year ago.
Banyan Tree says operating profit increased due to higher reversal of bad debts provision following payments by several hotel owners in China, lower exchange losses, lower marketing expenses incurred on hotel marketing and new property projects where revenue was only recognisable upon completion of project.
Revenue fell 9% to $90.4 million due to lower revenue recognition from property sales in 1Q17 as Cassia Phuket and Laguna Park Phuket were completed in 2nd half 2015 and several sold units were recognised in 1Q16 when the keys were handed over then.
Looking ahead, overall forward bookings for owned hotels is 17% above the same period last year. For property sales, deposits for 55 units with total sales value of $59.9 million was received in 1Q17 compared to 39 units of $27 million in 1Q16.
Shares of Banyan Tree closed 1 cent higher at 56 cents on Thursday.
