Banyan Tree takes asset-light path to profitability

SINGAPORE (Oct 13): Palm trees, soft white sand on endless beaches and blue seas on the west coast of Phuket conjure up images of the Banyan Tree brand and its luxury spas and mouthwatering Thai cuisine.

But don’t let the peace and tranquility fool you. The past three years have been difficult, however, with Banyan Tree notching up losses.

As it is, the leisure business is notoriously volatile. The Russians, who were major visitors at Laguna Phuket, were hit by the collapse in oil prices three years ago. In the meantime, the slowdown in China and poor execution by the company resulted in an additional drag.

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