CULTURE CREATING A OF OUR OWN - Banyan Tree Investor Relations
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CREATING A
CULTURE OF OUR OWN
Banyan Tree Holdings Limited Annual Report 2007
Contents
Executive Chairman’s Statement 4
Board of Directors 8
Management Team 10
Financial Highlights 2007 18
Group At A Glance 20
Setting Our Sights Higher 22
Accelerated Expansion 24
Uncovering True Value 26
Sustaining Growth 28
Awards and Accolades 30
Milestones 31
Portfolio 34
Business Review 46
Key Statistics 60
Analytical Review 64
Corporate Social Responsibility 70
Corporate Governance 74
Interested Person Transactions 80
Financial Statements 81
Shareholdings Statistics 157
Worldwide Resorts and Offices 159
Corporate Information 162
Notice of Annual General Meeting 163
Proxy Form 165
MANY ASSETS
ONE NAME
From left to right: Banyan Tree Phuket, Banyan Tree Lijiang, Banyan Tree Al Areen
A TIME TO
REFLECT
Banyan Tree Madivaru
Setting new benchmarks in creativity.
The first tented pool villas in the archipelago,
with a dedicated spa/bath tent where guests
can indulge in pampering treatments in the
privacy of their villa.
Banyan Tree Holdings Limited Annual Report 2007 3
EXECUTIVE
CHAIRMAN’S
STATEMENT
Banyan Tree Bintan
“Becoming global has always Dear Shareholders,
been part of our vision because The last two years have been a watershed period in our of Medium Term Notes in last quarter of 2007, but were of Banyan Tree Private Collection, from which we derived
growth. Since our listing, Banyan Tree has evolved from being offset by various investments, construction and renovation management fees for managing the Club. The Club, being
a long-term, sustainable business an Asia-focused company to one that is becoming truly projects, and payment of dividends to shareholders during the first asset-backed destination club in Asia offering
global in orientation. At the end of our second year as a the year. perpetual and transferable membership, had a good
requires that we grow our revenue public company, once again I am delighted that I have start with membership to-date within budget of close to
base and diversify worldwide.” good news for you.
Operational review 70 members.
During the year, the Hotel Management segment also
The Hotel Investment segment contributed the lion share of
Performance overview secured long-term contracts to manage 13 properties, on
our turnover raking in S$215 million, 27% more than 2006. The
top of the 19 signed in 2006 - a testimony to the proprietary
2007 was another good year as Banyan Tree continued on an major performers that led the growth of this segment were
advantage of our strong and growing brand equity. These
unabated path of accelerated growth. Strong performance Banyan Tree Lijiang in China and all of our Phuket properties
long-term management agreements form a key pillar in
from our hotel operations and property sales segments, in Thailand. Laguna Phuket benefited from the renovations
our expansion strategy of monetising and unlocking our
coupled with a one-off negative goodwill exceptional gain undertaken in recent years and was well poised to capitalise
brand value.
arising from our Thai subsidiary’s rights issue in July 2007, lifted on the buoyant tourism demands in Phuket which welcomed
our profit after taxation to S$102.4 million, a 142% gain over over five million visitors in 2007, surpassing the previous record We will open several properties in 2008. They include two new
the previous year. This was achieved on the back of a 26% set in 2004. With the opening of Angsana Riads Collection Banyan Tree seaside resorts on Hainan and Bali. Angsana
jump in revenue to S$421.9 million. Morocco in Ma rrakech in December 2 0 07 a nd the Hotel and Suites in Dubai, a twin-tower mixed development
completion of the renovated Angsana Velavaru in Maldives, comprising hotel and service residences, will see its service
In line with the revenue growth, the Group’s total operating
we expect the segment to continue to perform well. apartment tower open in 2008 and the hotel tower in 2009.
expenses increased by 34% because of higher headcount,
Banyan Tree Mayakoba in Mexico will be our first resort in the
operating supplies, administrative costs, and sales and Our Hotel Management business saw a 110% year-on-year
Americas and Banyan Tree Ras Al Khaimah in the UAE will
marketing expenses. There were increases in staff strength leap in revenue to S$14.7 million. The increased turnover
feature tented pool villas in the middle of the desert.
as the Group expanded its new hotel and spa operations; was attributed to better performance from Banyan Tree
for example, in Banyan Tree Lijiang. Seychelles, Maison Souvannaphoum and new fee income
from Banyan Tree Bahrain which opened in April 2007.
Our overall cash and cash equivalents improved by 42% to
Furthermore, 2007 was the first full year in the operations
S$115.7 million, largely due to proceeds from the issuance
Banyan Tree Holdings Limited Annual Report 2007 5
EXECUTIVE
CHAIRMAN’S
STATEMENT Banyan Tree Bangkok
Beyond 2008, the Banyan Tree brand will be winning more The branded Hotel Residences sales segment saw a marginal Many assets, one culture Our belief and efforts in CSR have now been expanded into
converts to its concept properties by opening in places 2% decrease in revenue to S$46.3 million, notwithstanding a separate CSR Annual Report 2007 entitled “Sustainability
such as Greece, Turkey, Oman, India and the Caribbean. that we sold more villas in 2007 than 2006 - 62 units compared As we lay the physical infrastructure for our accelerated for Life” which I am sure you will find a worthwhile read.
With these new projects coming on stream, barring any with 16 units. As construction of the villas started only in late growth, we have in tandem also plowed more resources into
unforeseen circumstances, I am confident we are on track 2007, we were unable to recognise the total sales due to nourishing the bedrock of our differentiating advantage – our
people. In 2007, we spent S$340 on training each employee, Acknowledgements
to achieving our goal of being global with approximately the accounting treatment of recognising sales based on
70 hotels and resorts and over 180 spas and galleries in percentage of completion method. Unrecognised revenue a 42% hike over the previous year. In addition, we made a As I look back on what we accomplished in 2007, I am
35 countries by 2011. as at end 2007 from units sold amounted to S$58.4 million. major commitment to training by setting up the S$2.5 million again reminded of the incredible support I received from
This figure rises to S$81 million if unrecognised revenue from Banyan Tree Management Academy in Phuket at the end of our business partners, customers and shareholders; to them
One of the key aspects of expansion of our hotel business is the year. Expected to officially open by the middle of 2008,
the Property Sales segment is included. I owe my deep gratitude. Much credit must also go to my
the need to build capacity to meet the growth challenges. the Academy will assess, nurture and maximise the talents in fellow Board members for their clear vision and guidance.
We have built a core team of corporate specialists in Hotel Residences is a core business with high margins the Group. It aims to become an internationally recognised, They have been a crucial compass in ensuring we stay
pre‑opening who are tasked to ensure the smooth opening because of the premium branding and represents an full-fledged hotel training school. the course. And last but not least, I am indebted to the
of hotels. We have also strengthened our organisational at tractive propos ition beca u se of our gua ra nteed
We opened a new spa therapy training institute during the management and staff of Banyan Tree for their passion and
infrastructure, and addressed issues on training, re-training investment return of 6% per annum for six years. We are very
year. The Banyan Tree Lijiang Spa Academy in Yunnan, dedication in keeping us always ahead of the curve.
and the need to maintain high service standards as we grow. encouraged by the almost four-fold jump in sales for this
In 2007, we expanded our regional sales and marketing segment in 2007. We also launched in a big way Banyan Tree China, is a unique facility to coach candidates in all areas Finally, I am pleased to announce, subject to shareholders’
offices in Hong Kong, Tokyo, London and Los Angeles to Residences in mid-2007 by hosting exhibitions and cocktails of Banyan Tree Spa service delivery. We also opened the approval, we will be paying out a dividend of 2.0 cents
further enhance our market reach. in various key market cities such as London, Hong Kong, Banyan Tree Thai Massage School in Bangkok. Both schools per share. This works out to S$15.2 million in total dividend,
Shanghai and Singapore. The response was excellent and have added substantial training capacity to our cornerstone representing 41% of our PATMI before exceptional item.
Turning to our Property Sales segment, revenue from this Banyan Tree Spa Academy in Phuket and facility in Bintan.
we plan to do more of such launches in 2008.
business rose by 38% to S$86 million in 2007. The increase Thank you for your support and I look forward to sharing with
was based on higher percentage of recognition from sales The Banyan Tree family today is truly a global one. We have you more of Banyan Tree’s success stories in the year ahead.
of Laguna Village Villas, Townhomes and Bungalows in A new business 7,000 people from 50 nationalities in our fold. While we are
Phuket. We also recorded higher sales of our Laguna holiday committed to providing them with skills-based training as
2008 will be a significant year as the Group will be tapping we grow, we also have a higher mission. We want to engage
vacation club memberships.
on its strengths to embark on a new but related business. As our people and cultivate in them a set of core values that
Design Fees and Others segment enjoyed a 50% lift in at the date of this report, we have established the Group’s I hope over time will take root and mature into an instantly Your Sincerely,
revenue to S$24.2 million mainly attributed to recognition first real estate development fund, the Indochina Hospitality recognisable Banyan Tree culture.
of several new projects during the year and better takings Fund. The fund is seeking a total commitment of between
from golf clubs management. Our Spa operations registered US$300 million and US$400 million by the final closing date
a 13% jump in turnover to S$24.9 million due to contributions which is expected to be in late 2008. The first close of the Deepening corporate social responsibility Ho KwonPing
from new spas and improved performance from spa outlets fund for US$100 million was completed on 27 February 2008 Since our inception, corporate social responsibility (CSR) has Executive Chairman
in Phuket and the Middle East. The Gallery segment enjoyed between the Group and two other cornerstone investors. occupied an important place in our business mission. We
a stable performance compared with the previous year. Its Each of the three parties has committed to invest one-third have always considered the communities and the physical
revenue in 2007 was S$10.7 million. of the first close amount and will increase that to 12.5% of environment in which we operate, vital stakeholders of our
final close amount, subject to a cap of US$50 million each business. We can only thrive if these communities and the
on or before the final close. environment flourish as well. For that reason, Banyan Tree has
The Indochina Hospitality Fund will invest primarily in the been a strong proponent of CSR and we are founding members
Revenue (S$m) of Singapore Compact and the United Nations Global
Laguna Vietnam project which is a beachfront site of
2007 421.9 approximately 280 hectares situated along three kilometres Compact, which promote good corporate citizenship.
of the coast of Central Vietnam. When completed, Laguna Since 2001 we have established a Green Imperative Fund
2006 335.3 Vietnam will have seven high-end resorts, including which provides financial support for environmental initiatives
Banyan Tree and Angsana, an 18-hole golf course, spas, and community-based projects. The fund also provides our
convention facilities, town centre and about 1,000 luxury hotel guests an opportunity to participate in our support
EBITDA (S$m) villas and residences for sale. This integrated resort concept of environmental protection and community help groups.
is modelled after our successful Laguna Phuket. Under an opt-out arrangement, they can contribute US$2
2007 122.5
Following the close of the Indochina Hospitality Fund, we per night of stay at our hotels and resorts. We match our
2006 111.4 plan to roll out development funds for other regions or guests’ contributions dollar for dollar to grow the fund.
countries. On the cards is a China Development Fund to In 2007, we deepened our commitment to operate as a
finance our various development projects in the mainland socially responsible business by introducing several major
and other projects currently under evaluation. programmes. We made CSR one of the key performance
PATMI (S$m)
New projects financed by the funds will not only create indicators for rating the success of all our resorts. We also
2007 81.9 spin‑off benefits for our integrated business segments introduced a natural resource conservation programme with
but also secure for the Group a new stream of recurring the objective of reducing the energy and water consumption
2006 27.1 at our resorts by 10% annually for the next three years.
fee‑based income – fund management fees.
Banyan Tree Holdings Limited Annual Report 2007 7
BOARD OF
DIRECTORS
Ho KwonPing Ariel P Vera Chia Chee Ming Timothy Dilhan Pillay Sandrasegara Elizabeth Sam
Executive Chairman Group Managing Director Lead Independent Director Independent Director Independent Director
Our Board of Directors Mr Ho is the Founder of our Group and is Mr Vera was appointed as a Director Mr Chia was appointed as an M r P i l l a y wa s a p p o i nte d a s a n M r s S a m wa s a p p o i nte d a s a n
is responsible for the responsible for the overall management on 11 April 2000 and assumes overall Independent Director on 8 June 2001 Independent Director on 1 March Independent Director on 23 March
and operations. He has been a Director responsibility for the corporate well- and became a Lead Independent 2004. Last re-elected on 28 April 2004. Last re-elected on 28 April 2006,
overall management and
since 5 July 2000. He was designated being of all the companies in our Group. Director on 28 February 2007. Last 2006, he is the Chairman of the she is a member of both the Audit &
direction of the Group. The E xe c u t i ve C h a i r m a n o n 1 M a rc h He was designated Group Managing re‑elected on 26 April 2007, he is A u d i t & R i s k C o m m i t te e a n d a Risk Committee and Nominating &
Board meets on a quarterly 2004 and was last re‑elected on 26 Director on 1 March 2004 and was last the Chairman of the Nominating member of the Nominating & Remuneration Committee.
basis or more frequently April 2007. re-elected on 28 April 2006. & Remuneration Committee and Remuneration Committee.
a member of the Audit & Mrs Sam is principally engaged in
as and when required Mr Ho is also the Chairman of Laguna Mr Vera is also a Director of Laguna Mr Pillay is the Managing Partner of consultancy work. She is also a Director
Risk Committee.
to review and monitor Resorts & Hotels Public Company Resorts & Hotels Public Company WongPartnership LLP and a Director of Boardroom Limited, SC Global
the Group’s financial Limited, Thai Wah Food Products Limited. Prior to joining us, he was Mr Chia is the Deputy Chairman and of its joint law venture firm, Clifford Development Ltd, AV Jennings Ltd,
Public Company Limited, Singapore Director of Finance and Administration Group Chief Executive Officer of Hup Chance Wong Pte Ltd. He has 19 years Kasikorn Bank, ST Asset Management
position and operations. Management University, MediaCorp of Asian Resorts Pte Ltd from June 1992 Soon Global Corporation Limited. He of experience in the legal industry and Ltd and Nippecraft Limited. She has
Pte. Ltd. and a Director of Air Seychelles. to March 1995, and Vice President, also serves on the board of several his main area of practice is Mergers over 40 years of experience in the
Each member of our He is a member of the Singapore-US Finance, of Tropical Resorts Ltd from private and public-listed companies, and Acquisitions. Mr Pillay is a Trustee of financial sector, having held the
Board possesses extensive Business Council, International advisory 1995 to 1997. He has over 23 years of including F J Benjamin Holdings Ltd, the Singapore Management University positions of Executive Vice President
Panel of Media Development Authority experience in the hotel and resorts Fraser and Neave Ltd, SP Power Grid as well as a member of the Advisory and Deputy President of OCBC Bank
experience in his or her of Singapore, Asia-Pacific Council of industry, having previously worked Limited and Singapore Post Limited. Board of its Law School. Besides being from 1988 to 1998, Board Director of
chosen profession and as The Nature Conservancy, Asia Regional with, amongst others, the Hyatt and From 1986 to 2004, Mr Chia was a Director a Board Member of the Accounting Mercantile House Holdings PLC (a
a Director of publicly listed Advisory Board of London Business Regent hotel chains. of PAMA where he was responsible for and Corporate Regulatory Authority company listed on the London Stock
companies. School, International Council and East private equity investments and from of Singapore, he is a Director of Exchange) from 1981 to 1987 and Chief
Mr Vera is a Certified Public Accountant
Asia Council of INSEAD, International 1995 to 2004, he was President of PAMA.
Our three Independent in the Philippines and holds a Bachelor Babcock & Brown Structured Finance Manager of the Monetary Authority of
Council of The Asia Society, and Mr Chia also previously served as Vice Fund Limited, CapitaRetail China Singapore from 1976 to 1981. She was a
Directors play a key role, of Science in Business Administration
National Economic Planning Council President of the Investment Department Trust Management Limited, Changi Director of the Singapore International
from University of the East, Philippines,
contributing invaluable of Seychelles. of American International Assurance
as well as a Master of Business Airports International Pte Ltd, Hup Monetary Exchange until its merger
legal, financial and Mr Ho previously served as a Director Administration from National University
Company Limited from 1982 to 1986 and
Soon Global Corporation Limited, with the Stock Exchange of Singapore,
business expertise, as President of Unithai Oxide Company
of Singapore Airlines Limited. He also of Singapore. MOH Holdings Pte Ltd, Alexandra and served as its Chairman from 1987
Ltd from 1980 to 1981. Since January 2004,
and providing strong, served as a Director of Standard Health Pte Ltd, SP Services Limited to 1990 and from 1993 to 1996. She has
Chartered PLC for about 10 years Mr Chia was named a Trustee of the
independent oversight. and The Ascott Group Limited. also been a member of the Singapore
Singapore Management University.
since 1996, and was a Board Member Institute of Directors since April 1999.
They also chair and/or sit on Mr Pillay was previously on the Boards
of Singapore Tourism Board for 2004. He Mr Chia was previously a Director
the Audit & Risk Committee holds a Bachelor of Arts (Economics) of The Hour Glass Limited, KorAm of Beyonics Technology Limited, Hiap Mrs Sam holds a Bachelor of Arts (Hons)
and the Nominating & from the then University of Singapore Bank Co Ltd (Korea), Magnecomp Seng Engineering Ltd and Power Seraya in Economics from the then University
and an Honorary Doctorate of Precision Technology Public Co Ltd Ltd. He holds a Bachelor of Laws (Hons) of Singapore.
Remuneration Committee.
Business Administration in Hospitality (Thailand), Meritz Securities Co., Ltd from National University of Singapore
Management from Johnson & Wales (Korea), and Macquarie Pacific Star and a Master of Laws from Cambridge
University, USA. Prime REIT Management Limited. He University. He was admitted to the
holds a Bachelor of Science cum laude Singapore Bar in 1989.
degree, majoring in Management,
from the Fairleigh Dickinson University,
United States of America.
Banyan Tree Holdings Limited Annual Report 2007 9
MANAGEMENT
TEAM
From left to right: Bernold Olaf Schroeder, Chiang See Ngoh Claire, Arthur Kiong Kim Hock From left to right: Surapon Supratya, Ho KwonCjan, Tee Hwee Liang
Chiang See Ngoh Claire Bernold Olaf Schroeder Ho KwonCjan Surapon Supratya
Managing Director, Retail Operations Managing Director, Hotel Operations Managing Director, Design Services Deputy Chairman,
Claire Chiang See Ngoh is Managing Director, Bernold Olaf Schroeder is Senior Vice President Ho KwonCjan is Senior Vice President and Laguna Resorts & Hotels (LRH)
Retail Operations. She is responsible for the and Managing Director, Hotel Operations. He Managing Director, Design Services. He heads Surapon Supratya is Senior Vice President and
strategic direction, management and operation is responsible for all operational aspects of the and oversees the project and design teams. Deputy Chairman, Laguna Resorts & Hotels (LRH).
of the Banyan Tree and Angsana Galleries. She is hotel portfolio and the business development Before his re-designation as Managing Director He has been a member of the Board of LRH since
also Senior Vice President, Retail, a position she has and expansion activities of the Group. Prior in March 2005, he was Joint Managing Director 1996 and previously served as its Group Managing
held since January 2004. Before her re‑designation to these appointments in 2005, he was Vice of LRH, a position he held from 1998. Mr Ho served Director. He was also Joint Managing Director
as Managing Director in March 2005, she served President of Operations from January 2004. He as Vice Chairman of Thai Wah Public Company and Chief Financial Officer of Thai Wah Public
as Executive Director of Banyan Tree Gallery joined Banyan Tree in 1997 and has served in Limited in Thailand from 1997 to 2003. From 1996 Company Limited. Prior to that, he was Financial
(Singapore) Pte Ltd (‘‘BTG(S)’’) from August 2000. various capacities, including General Manager to 1998, he was the Managing Director of Thai Controller of Thomson Television (Thailand) and
Her previous appointments include Director, Group of Banyan Tree Maldives from 1997 to 2001, Area Wah Resorts Development Public Co., Ltd and Louis T. Leonowens (Thailand). A Certified Public
Human Resource of Wah-Chang International Director of Indian Ocean from 1998 to 2001, from 1985 to 1992, the Project Manager of Thai Accountant, Mr Surapon holds a Bachelor of
Corporation (Singapore) Pte Ltd from 1992 to 1995 Vice President of Business Development from 1999 Wah Resorts Development Public Co., Ltd. Prior Accountancy from Chulalongkorn University,
and Director, BTG(S) from 1995 to 2000. to 2003, and General Manager of Banyan Tree to this, he worked at the architecture firm, Akitek Thailand, and a Master of Accountancy from
Bangkok, a position he has held since 2001. He Tenggara, in Singapore. Mr Ho holds a Bachelor Thammasat University, Thailand.
Ms Chiang served two terms as a Nominated
previously worked at the Hyatt Corporation based of Architecture (Hons) from National University
Member of Parliament in Singapore from 1997 to
in New York and the Holiday Inn Asia Pacific in of Singapore and is a recipient of the Singapore
2001. She is also one of two women to be elected
Hong Kong. Mr Schroeder has a Certificate Expert Institute of Architects Gold Medal. He has been
to the Board of the Singapore Chinese Chamber
in hotel business matters from the Chamber of registered with the Singapore Board of Architects
of Commerce and Industry, which for 89 years had
Industry and Commerce Karlsruhe, Germany. since 1986. Mr Ho is the brother of the Executive
admitted only men. Her public service portfolios
Chairman, Mr Ho KwonPing.
include Co-Chairperson of the National Tripartite
Initiative on Corporate Social Responsibility, Arthur Kiong Kim Hock
President of the Singapore Compact, Chairperson Managing Director, Sales & Marketing Tee Hwee Liang
of Employer Alliance, an appointment by the Senior Vice President, China Desk
Ministry of Manpower, and Co-Chairperson in Arthur Kiong Kim Hock is Senior Vice President
Making Businesses Pro-Family Workgroup and and Managing Director, Sales & Marketing. He Tee Hwee Liang is Senior Vice President, China
the Partner Connection Fund under the charge oversees the management and development Desks. He is responsible for resorts development in
of the Ministry of Community Development, Youth of our worldwide sales and marketing efforts and China. He is also a director at Lijiang Banyan Tree
and Sports. strategies. Prior to this, he was with the Peninsula Hotel, Ringha Banyan Tree Resorts and Lhasa
Hotel Group in Hong Kong, and The Ritz-Carlton Banyan Tree Hotel. Mr Tee holds a Bachelor
Ms Chiang holds a Bachelor of Arts and Social Hotel Company in New York. Mr Kiong holds of Commerce (Accountancy) from Nanyang
Science (Sociology) from National University of a Higher Diploma in Hotel Management from University, Singapore.
Singapore, a Master of Philosophy from University the Singapore Hotel Association Training and
of Hong Kong, and a Master of Arts (Translation) Education Centre (SHATEC).
from University of Sorbonne, Paris. She is the wife
of the Executive Chairman, Mr Ho KwonPing.
Banyan Tree Holdings Limited Annual Report 2007 11
MANAGEMENT
TEAM
From left to right: Dharmali Kusumadi , Eddy See Hock Lye, Paul Chong From left to right: Aileen Tay, Susan Lo Hung, Michael Lee
Eddy See Hock Lye Dharmali Kusumadi Susan Lo Hung Aileen Tay
Chief Financial Officer Vice President, Design Services Vice President, Sales Vice President, Sales
Eddy See Hock Lye is Vice President and Chief Dharmali Kusumadi is Vice President, Design Susan Lo Hung is Vice President, Sales. She is in Aileen Tay is Vice President, Sales. She is in charge
Financial Officer. Prior to joining the Group in Services. He is responsible for the design and charge of our China properties and responsible of our properties in the Maldives, responsible for
April 2004, he was the Managing Director of Asia planning of properties managed by Banyan Tree. for the group’s sales and marketing activities group sales for all Banyan Tree resorts as well as
Business Forum from 2002 to 2004 and its Chief Prior to joining the Group in November 1991, he was in China. Ms Lo was previously Vice President, Angsana resorts in the Maldives, Indian Ocean.
Financial Officer from 2001 to 2004. From 1996 to the Planning and Development Head of LG Group, Business Development (China). She was also She joined the Group in 2000 to launch the first
2001, Mr See was the Group Financial Controller of Bali, and was in charge of design and planning Head, Sales and Marketing, Spa from 2002 to Angsana resort in Bintan, Indonesia. Prior to that,
Amara Holdings Limited. He was also the General for projects. From 1985 to 1989, Mr Kusumadi was a 2006. She is a member of the Management she was Director of Sales at the Marina Mandarin,
Director of Amara Hotel Saigon Company Ltd, part-time lecturer at the Architecture Department Development Institute of Singapore and French Singapore. She has extensive experience in the
which operates Amara Hotel in Ho Chi Minh of Soegijapranata Catholic University, Semarang, Chamber of Commerce in Singapore. Ms Lo hotel industry ranging from operations to sales. Ms
City, from 1998 to 2001. Prior to that, he was with Indonesia. From 1984 to 1989, he was Principal holds a Bachelor of Business Administration in Tay holds a Bachelor of Commerce from University
Ernst & Young for nearly a decade, spending his Architect of Kusumadi Associates. He has been a Travel Industry Management from University of of Western Australia.
last four years there as Audit Manager. Mr See member of the Indonesian Institute of Architects Hawaii, and was awarded Golden Key of National
holds a Bachelor of Commerce from University since 1991 and holds a Master of Architecture Honors Society.
of Auckland and is an Associate Chartered f ro m P a ra hya n g a n C a t h o l i c U n i v e r s i t y,
Accountant, New Zealand. Bandung, Indonesia.
Michael Lee
Vice President,
Paul Chong Marketing Systems & Services
Vice President, Business Development
Michael Lee is Vice President, Marketing Systems &
Paul Chong is Vice President, Business Development. Services. He has over 20 years of experience in the
He oversees the global development team and travel, banking and hospitality sectors. He most
all legal matters related to business development recently served as CEO of Raffles Marina Limited.
and the expansion of the group internationally. He previously held positions of Vice President of
Mr Chong joined the Group in 2001 as the Legal Marketing at CDL Hotels International and Vice
Manager of the Group, and was promoted to President at United Overseas Bank. He holds a
the position of Group Legal Manager in 2002 and Master of Business Administration from Oklahoma
Assistant Vice President, Head of Development City University, USA. He also attended the Certified
in 2004. Prior to joining Banyan Tree, he worked Enterprise Architecture Practitioner programme
in several top Singapore legal firms including conducted by Institute of Systems Science at
Allen & Gledhill and Rajah & Tann. He holds a the National University of Singapore, and is a
Bachelor of Laws (Hons) from National University TOGAF Certified Practitioner. Mr Lee is a Chartered
of Singapore. Marketer and a Fellow of Chartered Institute of
Marketing, UK, and a member of the Chartered
Financial Analyst Institute, CFA (USA).
Banyan Tree Holdings Limited Annual Report 2007 13
MANAGEMENT
TEAM
From left to right: Hokan Limin, Shankar Chandran, Michael Ramon Ayling, John Searby From left to right: Sachiko Shina, Maximilian Lennkh, Emilio Llamas Carreras, Marina Kleiman
Michael Ramon Ayling Shankar Chandran Emilio Llamas Carreras Maximilian Lennkh
Managing Director, LRH Managing Director, Spa Operations Area General Manager (Mayakoba) Area General Manager
Michael Ramon Ayling is Vice President and Shankar Chandran is Vice President and Managing Emilio Llamas Carreras is Vice President and (Yunnan and Hainan)
Managing Director, LRH. He oversees the Director, Spa Operations. From 2001 to 2004, he Area General Manager, Mayakoba. Prior to M a x i m i l i a n Le n n k h i s V i ce Pre s i d e nt a n d
operations of LRH which include the hotel, property served as Group Executive (Corporate) Director joining the Group in April 2001, he was General A rea General Manager (Yunnan and Hainan).
sales and timeshare businesses. Mr Ayling joined and from 1997 to 2001 served as Assistant Vice Manager of SolMelia in “Gran Melia Salinas”, He leads, coordinates and supervises the overall
LRH in September 2000 as Assistant Vice President, President, Finance. Prior to joining the Group, he Lanzarote, Spain, where he was responsible for operational activities of the Group’s properties in
Finance. He was promoted to Deputy Managing was the Financial Controller and Deputy General the overall management of the hotel. In 1998, he Southern China. Mr Lennkh joined Banyan Tree
Director/Vice President, Finance in February 2005 Manager of Regent Plaza, London, and Regional was conferred the Civil Merit Award by the King in July 2001 as Area General Manager, Maldives
and to Managing Director, Laguna Phuket in July Internal Auditor/Financial Controller of Hilton of Spain in recognition of his role as the Honorary Business Area. Since then, he has held the positions
2006, and then to his current position in August International Hotels, UK. Mr Chandran holds a Consul of Spain in Bali, Indonesia. Mr Carreras of General Manager, Banyan Tree Seychelles and
2007. Prior to joining LRH in 2000, Mr Ayling was a Postgraduate Diploma in Management Studies holds a hotel diploma and an engineering degree Area General Manager, Yunnan Business Area
Senior Audit Manager with KPMG, Sydney from from Kingston University (London) and a Higher from Sevilla University, Spain. (China). Mr Lennkh comes from a well-established,
1998 to 2000, and KPMG, Port Moresby from National Diploma Finance from South West all-round hospitality background which he gained
1992 to 1998 where he was responsible for the London College, UK. by working in several areas of hotel operations
day-to‑day running of the audit division and
Marina Kleiman
for high-end chains such as Hilton and Sheraton
managing client audits. He is a member of the Vice President, Hong Kong Hotels. He is fluent in German, English, Portuguese
Institute of Chartered Accountants in England
John Searby
Marina Kleiman is Vice President, Hong Kong. and Spanish, and is a holder of various hotel
and Wales. Mr Ayling holds a Bachelor of Arts in Vice President, Corporate (Mexico) She is responsible for the sales and marketing management certifications, one of them issued
Accounting and Finance (Hons) from Manchester John Searby is Vice President, Corporate (Mexico). activities of the Group in Hong Kong. Ms Kleiman by London Business School.
Metropolitan University, UK. He is responsible for the corporate activities of the was previously the Group’s Assistant Vice President
Group in Mexico and the Americas. Mr Searby of Sales and Market Development for Hong Kong,
joined the Group in June 2002 as Area Financial Spain, South Africa and South America. Prior to
Sachiko Shina
Hokan Limin Vice President, Japan
Controller with responsibility for the financial joining Banyan Tree Hong Kong Regional Sales
Vice President, Hotel Finance management of the Group’s interests in Phuket. Office, she worked in Banyan Tree Phuket and Sachiko Shina is Vice President, Japan. She
Hokan Limin is Vice President, Hotel Finance. He Prior to joining the Group, Mr Searby worked Banyan Tree Bintan as part of the Opening Team, leads, coordinates and supervises the overall
oversees the implementation of policies and in Australia for various hotel and hospitality and assisted with training the team in Banyan Tree operational, sales and business development
procedures, and is in charge of internal controls. He companies including Ritz Carlton, Stamford Hotels Maldives. Ms Kleiman holds a certificate equivalent activities for the Group in Japan. Ms Shina joined
also recruits and manages financial controllers in and Ramada Hotels and Resorts. A British national, to Bachelor of Arts from Teatro Nacional General the Group in July 1995 as Sales and Marketing
the Group’s hotels, and coordinates and oversees he is a member of the Institute of Chartered San Martin on Contemporary Dance, Buenos Aires Manager GSA, Japan. In January 2000 she
hotel pre-opening activities. Prior to joining the Accountants in England and Wales. Argentina. She also has a certificate of meritorious became Director of Sales, Japan and was later
Group in 1999, Mr Limin worked at several achievement, from Damelin Management School promoted to Assistant Vice President, Sales &
five‑star resort chains including Shangri‑la, in South Africa. Business Development in May 2006. Ms Shina is
Hyatt and Inter-Continental resorts. He holds a fluent in Japanese and English.
Bachelor Degree of Finance and Accountancy
from Trisakti University, Jakarta, Indonesia.
Banyan Tree Holdings Limited Annual Report 2007 15Banyan Tree Spa
Pioneer of the tropical garden spa, Banyan Tree
Spa incorporates an exotic blend of wellness
remedies passed down through the generations.
Our dedicated Spa therapists are graduates of
Banyan Tree Spa Academy to ensure guests enjoy
a consistently high quality service. This exceptional
quality has been recognised by the travel trade
with Banyan Tree Spa winning Best Spa Operator
for three consecutive years in TTG Travel Awards.
IN GOOD
COMPANY
Banyan Tree Holdings Limited Annual Report 2007 17FINANCIAL
HIGHLIGHTS 2007
Angsana Ihuru
Growth (2007 vs 2006)
Revenue
Revenue(S$m)
(S$m) Growth
Growth
(2007
(2007
vs 2006)
vs 2006)
Banyan Tree Group 2004 2005 2006 2007 Revenue
Revenue(S$m)
(S$m) Growth
Growth
(2007
(2007
vs 2006)
vs 2006)
++26%
26%
S$m S$m S$m S$m 20072007 (S$m)
Revenue 421.9
421.9 Growth (2007 vs 2006)
++26%
26%
Revenue
Revenue
2007
Revenue (S$m)
(S$m)
2007 (S$m) 421.9421.9 Growth
Growth
Growth (2007
(2007
(2007 vs
vs 2006)
2006)
vs 2006)
+
Revenue 218.8 187.3 335.3 421.9
26%
++26%
2007 335.3421.9421.9
26%
20062006
2007 335.3
EBITDA 79.7 34.7 111.4 122.5 20062007
20072006 335.3335.3421.9
421.9
2006
20052005 187.3
187.3 335.3
Profit before tax (PBT) 60.9 3.5 66.9 126.5 2006 335.3
20052006
20062005 187.3187.3 335.3335.3
Profit before tax (PBT) & EI 60.9 3.5 74.7 81.9 2005 187.3
20042004
2005 218.8218.8
187.3
Profit after tax (PAT) 49.5 (0.0 ) 42.4 102.4 20042005
20052004 187.3187.3
218.8 218.8
Profit after tax & MI (PATMI) 30.4 1.0 27.1 81.9 2004 218.8
2004 218.8
20042004 218.8218.8
Profit after tax & MI (PATMI) before EI 30.4 1.0 33.5 37.3
EBITDA margin 36% 19% 33% 29%
PATMI margin 14% 1% 8% 19%
EBITDA
EBITDA
(S$m)
(S$m) Growth
Growth
(2007
(2007
vs 2006)
vs 2006)
EBITDA
EBITDA
(S$m)
(S$m) Growth
Growth
(2007
(2007
vs 2006)
vs 2006)
+10%
+10%
PATMI before EI margin 14% 1% 10% 9% 20072007
EBITDA (S$m) 122.5
122.5 Growth (2007 vs 2006)
+10%
+10%
EBITDA
20072007
EBITDA
EBITDA (S$m)
(S$m)
(S$m) 122.5122.5 Growth
Growth
Growth (2007
(2007
(2007 vs
vs 2006)
2006)
vs 2006)
+10%
+10%
2007 122.5
+10%
Per share ($) 20062006
2007 111.4111.4122.5
20072007 122.5122.5
20062006 111.4111.4
Basic & Diluted earnings 0.051 0.002 0.039 0.108 2006 111.4
20052005
2006 34.7 34.7 111.4
Net tangible asset including MI* 0.547 0.528 0.636 1.074 20052006
20062005 34.7 34.7 111.4111.4
Net tangible asset excluding MI* 0.315 0.309 0.436 0.760
2005
20042004 34.7 79.7 79.7
2005 34.7
20042005
20052004 34.7 34.7 79.7 79.7
Debt equity ratio 0.25 0.70 0.45 0.41 2004 79.7
2004 79.7
20042004 79.7 79.7
* 2004–2006 NTA per share have been calculated based on the sub-division of each of our ordinary shares into two ordinary shares.
Banyan Tree• Share Performance (S$) PATMI
PATMI
before
before
EI (S$m)
EI (S$m) Growth
Growth
(2007
(2007
vs 2006)
vs 2006)
PATMI
PATMI
before
before
EI (S$m)
EI (S$m) Growth
Growth
(2007
(2007
vs 2006)
vs 2006)
+11%
+11%
20072007
PATMI before EI (S$m) 37.3 37.3 Growth (2007 vs 2006)
+11%
+11%
3.000 PATMI
PATMI
2007
PATMI2007 before
before
before EI
EI (S$m)
EI (S$m)(S$m) 37.3 37.3 Growth
Growth
Growth (2007
(2007
(2007 vs
vs 2006)
2006)
vs 2006)
+11%
+11%
2007 37.3
+11%
2.800 20062006
2007 33.5 33.5 37.3
20072007 37.3 37.3
20062006 33.5 33.5
2.600 2006
20052005 1.0 1.0 33.5
2006 33.5
20052006
20062005 1.0 1.0 33.5 33.5
2.400
2005
20042004 1.0 30.4 30.4
2005 1.0
2.200 20042005
20052004 1.0 1.0 30.4 30.4
2004 30.4
2004 30.4
2.000 20042004 30.4 30.4
1.800
1.600 Earnings
Earnings
per per
share
share
(S$)(S$) Growth
Growth
(2007
(2007
vs 2006)
vs 2006)
Earnings
Earnings
per per
share
share
(S$)(S$) Growth
Growth
(2007
(2007
vs 2006)
vs 2006)
+177%
+177%
Closing Price on 31/12/07 : 2.050
1.400 20072007 per share (S$)
Earnings 0.1080.108 Growth (2007 vs 2006)
+177%
+177%
High on 06/07/07 : 2.870 Earnings
2007 per per
Earnings
2007
Earnings per share
(S$)(S$)
share
share (S$) 0.1080.108 Growth
Growth
Growth (2007
(2007
(2007 vs
vs 2006)
2006)
vs 2006)
+177%
+177%
1.200 Low on 09/10/06 : 0.825 2007 0.108
+177%
20062006
2007 0.0390.039 0.108
20072007 0.1080.108
1.000 20062006 0.0390.039
2006
20052005 0.002 0.039
0.002
2006 0.039
0.800 Jun
06
Jul
06
Aug
06
Sept
06
Oct
06
Nov
06
Dec
06
Jan
07
Feb
07
Mar
07
Apr
07
May
07
Jun
07
Jul
07
Aug
07
Sept
07
Oct
07
Nov
07
Dec
07
20052006
20062005 0.0390.039
0.0020.002
2005
20042004 0.002
2005 0.002 0.051 0.051
• Banyan Tree Holdings Limited was listed on 14 June 2006 20042005
20052004 0.0020.002 0.0510.051
2004 0.051
2004 0.051
20042004 0.0510.051 Banyan Tree Holdings Limited Annual Report 2007 19GROUP AT A GLANCE
Banyan Tree Group Group description Key facts Group Revenue Total Revenue (S$m) Group Revenue
Banyan Tree Holdings is a leading The Group’s revenue comes from seven • Owns and/or manages 23 resorts,64 spas The Group’s revenue grew by 26% to S$421.9
+26%
2007 421.9
global manager and developer of business segments: hotel investments, and 65 galleries. m illion a nd delivered a PATMI before
premium resorts, hotels and spas. hotel management, hotel residences, • Listed on the Singapore Exchange since exceptional item of S$37.3 million.
2006 335.3
The Group’s business centres on spa operations, property sales, gallery 14 June 2006.
our t wo award - winning brand s : operations, and design fees and others.
• Included in MSCI Small Cap Index on
Banyan Tree and Angsana.
3 May 2007. 2007 215.0
• Included in FTSE ST Mid Cap Index on
10 Jan 2008. 2007
2006 169.6 421.9
2006 335.3
Hotel investments Key facts Strong Showing Revenue
2007 (S$m) 14.7 Banyan Tree
2007 421.9
Banyan Tree owns and manages luxury
hotels under our own brands as well as
• Equity Interest in 15 hotels, comprising
over 1,600 keys.
Our resorts in Thailand saw revenue
growth of S$32.5 million or 25%, despite
2006
2007 7.0 215.0 Lijiang’s RevPAR
hotels that are managed by other world- political uncertainties. 2006 335.3
+68%
• New resorts being developed in China, 2006 169.6
class operators. Maldives and Vietnam. 2007 421.9
Our resorts in China saw revenue growth
of 132%, affirmation of our presence
2007 46.3
in China. 2007
2006 215.0
335.3 14.7
2007
2006 47.3
2007 421.9
2006 169.6
2006 7.0
Hotel management Key facts Global Expansion Revenue (S$m)
2006
2007 335.3 215.0 Hotel Management
We manage properties under the Banyan
Tree and Angsana brands for other owners as
• Signed 13 new management agreements
in 2007.
The Group’s rapid expansion plans have
projected the number of hotels managed
2007
2006
24.9
169.6 14.7 revenue
2007
2007 421.9
46.3
215.0
well. This is mostly done under straight forward to exceed 65 by 2011.
+110%
• Number of keys under hotel management 2006 7.0 22.1
m a n a g e m e n t a g re e m e n t s . We a l s o will exceed 8,000 by 2011. 2006
2006 335.3 47.3
169.6
managed the Banyan Tree Private collection, 2007 14.7
an asset-backed destination club. 2007 421.9
2007 86.0
2006
2007 7.0 46.3
2007
2006 215.0
335.3 14.7
Hotel residences Key facts Banyan Tree Lijiang Revenue (S$m)
2006
2007
2006
62.4 24.9
47.3 Total number of
2006 7.0 169.6
Properties are primarily sold under the
brand name “Banyan Tree Residences”,
• Initial revenue was from sale of Double
Pool Villas in Banyan Tree Phuket.
The newly launched Banyan Tree Residences
in Lijiang was well received with 14 villas
2007
2006
2007
22.146.3
10.7
421.9
215.0
Villas sold
which are part of our hotel operations. sold at year end at an average price of
+288%
• Banyan Tree Res idences are now 2006 47.3
available for sale in Phuket, Seychelles, US$1.0 million. 2007
2006 14.7
24.9
10.8
335.3 46.3
169.6
2007
2007 86.0
Lijiang, Bintan and Bangkok.
2006 7.0 22.147.3
2006
2007
2006 62.4 24.2
2007 14.7
215.0
24.9
Spa operations Key facts New additions Revenue (S$m)
2006
2007
2007
16.1
86.0
Banyan Tree
2006 7.0 22.146.3
169.6 10.7
We manage spas within our own resorts and
also in other developers/owners’ hotels and
• 64 spas worldwide.
• We added two new training facilities,
11 new spas were opened in 2007, with the
main focus on expansion in China.
2007
2006 62.4
24.9 Spa outlets
2006 47.3
10.8
resorts. We pioneered the tropical garden
+21%
Banyan Tree Lijiang in Yunnan Province, 2006 22.114.7
spa concept. China and Banyan Tree Bangkok. This is in
2007
2007 86.0
46.3
addition to our cornerstone Banyan Tree 2007 24.2
10.7
Spa Academy in Phuket and facility in 2006
2006 7.0 62.4 47.3
2007
2006 16.1 24.9
86.0
Bintan. 10.8
2007
2006 62.4 22.110.7
2007 46.3
24.2
Property sales Key facts Strong Growth Revenue (S$m)
2007
2006 24.9
10.8
Property sales revenue
Properties are sold by our subsidiary • All property sales are currently in Our property sales in Laguna Phuket 2006
2007 16.1 47.3
10.7
+38%
2007
2006 22.186.0
company Laguna Resorts & Hotels and Laguna Phuket. continued its strong sales growth in 2007
its subsidiaries. We also manage Laguna with revenue increased by S$18.6 million.
2007 24.2
• Pri ma ri ly town home s & bu ng a lows 2006
2006 62.4 10.8
Holiday Club, a timeshare vacation club located within the vicinity of our resorts
memberships. 2006 16.1 86.0
but not part of hotel operation. 2007 24.9
2007 24.2
2007 10.7
2006 62.4 22.1
Gallery operations Key facts Expanding its Reach Revenue (S$m)
2006
2006
16.1
10.8 Gallery outlets
The retail arm of the group, Banyan Tree • Co m p ri s e s B a nya n Tree Ga l l e ri e s , The Division currently manages 29
+18%
2007
2007 10.7
86.0
Gallery supports indigenous artistry, Angsana Galleries and Museum Shops Banyan Tree Galleries, 33 Angsana Galleries 2007 24.2
l i ve l i h o o d s o f v i l l a g e a r t i s a n s a n d by Banyan Tree. and 3 Museum Shops by Banyan Tree.
2006
2006 62.4 10.8
environmental conservation. • P r o d u c e d 4 3 c o l l e c t i o n s o f ove r 2006 16.1
280 products.
2007 24.2
• Partners 49 not-for-profit organisations. 2007 10.7
2006 16.1
2006 10.8
Design fees & others Key facts Awards Recognition Revenue (S$m) Design Fees revenue
We receive fees for design services and • Construction of new resorts determines Won 6 Prestigious design awards since 2006
+42%
2007 24.2
income from operating golf clubs. Most of revenue from design fees. for our two resorts in China, Banyan Tree
our resorts are planned and designed by our • Operate t wo golf clubs (Bintan Lijiang and Banyan Tree Ringha.
2006 16.1
in-house architectural and design team. and Phuket).
Banyan Tree Holdings Limited Annual Report 2007 21SETTING OUR SIGHTS
HIGHER
It has always been Banyan Tree’s vision to be a global REVENUE (S$m)
business with a string of properties strategically spread
around the globe. With the international travel industry 0 50 100 150 200 250 300 350 400 450
enjoying a boom in recent years, we have been quick to ride 2007 421.9
on this growth by creating products and services that cater
to growing international demand for luxurious, romantic 2006 335.3
travel experiences.
2005 187.3
From our maiden property in Phuket, Banyan Tree has rapidly
spread its branches to many parts of the world. At the end 2004 218.8
of 2007, we had 23 resorts, 64 spas and 65 galleries in more
than 20 countries across Asia, the Middle East, Africa and 2003 154.2
Europe. In 2008, we will have a presence in the Americas as
well. The success of our Banyan Tree and Angsana resorts, 2002 42.8
spas and galleries continues to validate the universal appeal
of our brand of hospitality. 2001 37.3
As we enter a phase of accelerated expansion, we are
confident that we have in place the physical infrastructure,
capacity, and talents to see us through our efforts to be a
truly global brand.
Banyan Tree Bangkok
This former helipad was transformed into the
award‑winning alfresco restaurant and bar.
Offering panoramic views of the busy streets of
Bangkok, Vertigo Grill and Moon Bar is the result
of continual innovation – which permeates the
brand and culture of the Group. Banyan Tree
Bangkok is also on the Gold List of Best Hotel
for Rooms by Conde Nast Traveller (UK).
Banyan Tree Holdings Limited Annual Report 2007 23Ireland
x2
Beijing
ACCELERATED
DunHuang
Korea
Greece
EXPANSION
Turkey
Jiuzhaigou Kobe
Portugal
x2 Lhasa
Miyazaki
Morocco Jordan
Hangzhou Shanghai
Kuwait Yunnan
Egypt
x2 x2 Guilin
Dubai
Turks & Caicos Bahrain x2 Guangzhou
x4
Taiwan
Mexico Hainan
U.A.E Oman India x2 Hongkong
x5 x5 Dominican Republic Vietnam
x4 x4 x11 Chiang Mai Philippines
x4 x3
Barbados x2 Bangkok
+59%
x2 Phuket Luang Prabang
x5 x5
From 22 countries in 2007 x4 Koh Samui
to 35 countries by 2011 Maldives Sri Lanka Kuala Lumpur
x2 x2 x2 Guam
+73%
x2 x2 Bintan x2
From 52 locations in 2007 Seychelles
to 90 locations by 2011
Bali Lombok
+204% From 23 resort & hotels in 2007
to 70 resort & hotels by 2011
Current establishments Future developments
+301%
Banyan Tree Hotels and Resorts Banyan Tree Hotels and Resorts
Mauritius Cairns
Angsana Resorts Angsana Resorts
From 2,330 keys in 2007
to 9,349 keys by 2011 Colours of Angsana Banyan Tree Spa Gold Coast
Laguna Resorts & Hotels Angsana Spa
+94%
Banyan Tree Spa South Africa
From 64 spas in 2007 Sydney
Angsana Spa x2
to 124 spas by 2011 Oberoi Spa By Banyan Tree
Greater breadth and depth OperatingGrowing property
Performance business
(Hotel Residences) Successful Launch of Banyan Tree Residences
Succesful Launched of Banyan Tree Residences 2007
2007 was a year in which our businesses expanded in Substantial groundwork has been laid which will see us sink Our property business including branded hotel residences Units Sold Total Value (S$‘Mil)
breadth and depth. The number of resorts and hotels in
which we have an equity interest rose from 13 in the previous
our roots deeper into the Middle East. Twelve projects are
in the offing with more than half of these in the UAE, the
37.8 62
made great strides as well in 2007. We
Total Unitsold
Sold 113 properties,
surpassing the previous year’s record of 100 units. Properties
(2007) (2007)
year to 15 in 2007, and in terms of number of keys from 1,610 gateway to the region. Angsana Hotel & Suites in Dubai, 31.3
103.2
branded under our new concept Total “Banyan
Value Tree Residences”
(S$’Mll) 4 7.6 5.5
to 1,669. For those which we do not own, they increased a deluxe urban hospitality project, is scheduled to open in benefited from a successful launch in Hong Kong and London. 14
22 21.0 21.0
from seven in the previous year to eight in 2007, and in terms the heart of the city in 2008. The concept groups together Banyan Tree properties from
40
16 16
of keys, from 588 to 661. Phuket, Bintan, Bangkok, Lijiang and the Seychelles. We also
14 37.8 Total Units Sold
2008 will see us extending our reach to the Americas.
held several6 roadshows
7.6 in Moscow, Shanghai and Singapore. 6
Going forward, resorts and hotels which we do not own but Banyan Tree Mayakoba in Mexico will open at the end of 4 5.5
71.9
Total Value
The favourable reception generated sales of 40 units, of (S$‘Mil)
manage will become more significant as they will occupy a 2008. We will be the only Asia-based hospitality firm to be
which Phuket accounted for 40%, followed closely by Lijiang,
larger share of our portfolio of properties. They will account in the exclusive company of selected international luxury Dusit Laguna BT Phuket BT BKK BT Lijiang BT Bintan
Phuket with the rest shared between Bangkok and Bintan. Banyan Tree Phuket Banyan Tree Bangkok
for some 60% of the new properties coming on stream brands in this Mexican integrated resort. We will also deepen Banyan Tree Lijiang Banyan Tree Bintan
from 2008 to 2011. In the year under review, we signed 13 our presence in existing territories with the opening of two Unit Sold (Jan-Dec07) Total Value (S$’Mll)
long‑term management contracts, in addition to 19 signed Banyan Tree seaside resorts in Bali and Hainan. New recurring fee-based income
in 2006. This trend shows that our strategy of expansion by Rapid Growth Since Inception
Beyond 2008, the Banyan Tree brand will be winning more During the year, we developed a new business which will Rapid Growth Since Inception
unlocking the Banyan Tree brand value is bearing fruit.
converts to its concept properties by opening in Greece, bring in additional streams of income for the Group. This real
1994 2007 2011
Equally important was the growth in terms of geographical Turkey, Oman, India, Vietnam and widening its presence estate-related fund management business will generate
reach. In 2007, we added resorts to our key regions of Indian in China and Thailand. more opportunities for our various segments to improve their Resorts & Hotels
Ocean and North Africa. Banyan Tree Madivaru opened earnings and also they will provide the Group with a new
Our spa business, a major beneficiary of our resort and hotel source of recurring fee-based income – fund management
in the Maldives in May and the Angsana Riads Collection
Morocco in Marrakech in December. Already redefining
growth, has also been making impressive gains by itself. fees. Our first product, the Banyan Tree Indochina Hospitality 5 23 70
Already the largest spa operator in Asia, we added 11 more Fund, was launched in January 2008. By the end of February
the luxury accommodation experience in Morocco in a
outlets in 2007 bringing the total to 64. Of the new spas, 2008, the fund had attracted US$100 million between the
Keys
short span of time, Angsana will be adding more riads in
eight were outlets in third-party properties. Again this points group and two other cornerstone investors. We hope to raise
the country in 2008.
to the strength of our brand and its strong association with up to US$400 million by late 2008 to finance our Laguna
950 2,330 9,349
We also made considerable inroads into the Middle East, quality massage therapies. The growth of our spa business Vietnam development located at a 280 ha coastal site in
another key growth region for the Group. In 2007, we was also well spread geographically. We opened new Spas
Central Vietnam. We also plan to launch another fund which
opened two managed properties there. The 5-star Royale outlets in Bahrain, the Maldives, on board The World cruise will invest in our projects in China.
Hayat Private Hospital, Safat in Kuwait marked our foray ship, China, Ireland, Japan, Australia, Guam and Morocco. 0 64 124
into medical tourism. Over in Bahrain, we launched the Devotees of our therapies can expect to find our spas in
Banyan Tree Desert Resort & Spa, Al Areen to coincide with more corners of the world in the next few years.
the Formula One Grand Prix in the Kingdom.
Banyan Tree Holdings Limited Annual Report 2007 25UNCOVERING
TRUE VALUE
“Our integrated capabilities
underpin our unique position
vis-à-vis other players in the industry.
TDA ($m) Banyan Tree is not just a hotel/spa Awards & Accolades by
0 50
operator;
100 150
it is also
200 250
a property
300 350
investor, 2000 2007
5 manager, and developer.”
000.0
6 000.0
Banyan Tree Madivaru
7 000.0
Hotel Investment* Property Sales
Hotel Management* Gallery Operations
Enlarged pipeline Integrated business model
Spa Operations Design & Others
21 359
The Group’s large lineup of projects coming on stream in the The Group has seven key business segments: hotel investment, Our wholistic business model has resulted in healthy revenue The growing reputation and value of both brands have
*Hotel management fees attributed for hotels managed and
next
owned by BTH few years
allocated does
to hotel not reflectsegment.
management our only capacity for greater hotel management, hotel residences, property sales, spa and earnings growth over the years. In 2007, we recorded a allowed us to expand without putting a strain on our balance
growth. We also have a 549 ha landbank that is spread over operations, gallery operations, and design and other total revenue of S$421.9 million, a marked 26% rise over 2006. sheet. By signing up more management contracts, we not
Phuket, the Seychelles, Vietnam, Lijiang and Lhasa for hotel services. These businesses offer products and services that Operating profit was S$122.5 million, an increase of 10% over only extend our footprint globally but also monetise and
residences and property sales. Some 12% of it is currently complement each other thereby enhancing the overall the previous year. Almost all segments contributed to the unlock the value of the two brands. This asset-light approach
TDA Margin (%)development. The total landbank provides us with
under bottomline. Our web of interlocking capabilities has helped earnings growth with hotel investment bringing in the lion is a key feature of our expansion strategy. Illustrative of this is
an
otel Investment*
enlarged pipeline that willGallery
Spa Operations
last usOperations
23 years assuming we us secure an increasing number of high margin, long-term share of the takings, followed by property sales segment. our success in marketing hotel residences using our brands.
build 100 Property
villas aSales
year, our historical average. management contracts without intensive capital outlay. In 2007, we sold 40 of these residences in Phuket, Bangkok,
otel Management* Design & Others Our integrated capabilities underpin our unique position
Lijiang and Bintan, a 150% increase over 2006.
Group vis-à-vis other players in the industry. Banyan Tree is not just
m)
ue
0 ($m) Available
00
Landbank for Property
00
& PATMI before
PATMI before
Banyan Tree
Exceptional
Exceptional
Items ($m)
Items ($m) 37.3 EBITDA
37.3 ($m) ($m) a hotel/spa operator; it is also a property investor, manager,
EBITDA
Hotel Residences and developer. Unlike the conventional hospitality business
Available33.5Landbank¹ for Property & Hotel Residence
00 00
50
100 00
100
150
00
00
150
200
00 00
200
250
00 5
250
300 300
350
00 00
00
350
00
integrated o tel
33.5
e s &
D
O
esig
n
0 050 100model,
50
true
150our integrated
100
value
150
lies
200
in the
multiple
200
250
sum of
250businesses
300
these
350 suggests
300
parts.
350 that our AwardsAwards
& Accolades
& Accolades
by 2000by 2000
H c
model of
000.0 000.0 en th e 2006 LIJIANG/
2006 000.0 000.0
6 sid LAGUNA rs
Re
2121
00 Currently 00 00
PHUKET SEYCHELLES VIETNAM LHASA TOTAL
multiple Currently
56
Developing
000.000 000.0
(Ha) 00
14.7 14.7
18.4 18.4 2006 2006 Unlocking our brand value
000.0 000.0
56 5 - 6 67
Inv
Gallery
businessesLandbank (Ha)
Landbank (Ha)
Hotel
estm
98 82 280 22 Developing (Ha) Our business centres on two award-winning brands, each
Sales
000.0 000.0 11.1 11.1 11.1 11.1 2007 2007 000.0 000.0
8.3 8.3
98 82 280 22 482 with a distinct personality. Banyan Tree comprises high-end
ents
Total Landbank (Ha) 154 87 280 28 4.0 4.0
Hotel
estment PropertyProperty
Investment Sales Sales 3.7 3.7
4.6 4.6 Hotel Investment* luxury resorts
Hotel Investment* and
Property spasSales
Property
Sales which resonate with highly affluent AwardsAwards
& Accolades
& Accolades
Total (Ha) 154
3.2 3.287 280 28 549 travellers seeking a luxury retreat with a focus on romance,
2005 2006 2007 by 2007by 2007
Ma Hot
anagement
Hotel Management
Gallery Operations
Gallery Operations
Laguna Phuket (0.9) (6.0) (0.9)
1.0
(0.4) (6.0) (0.4)
1.0 Hotel Management*
Hotel Management* Gallery Operations
Gallery Operations
Total landbank 46 26 84 8 65 intimacy and rejuvenation. Angsana, on the other hand,
na e
pe e s
erations
Spa OperationsDesign &Design
Others&Seychelles
Others Spa Operations
Spa Operations Design &Design Others& Others
549 23*
rty
1Q 2Q 1Q
3Q 2Q
4Q 3Q
FY 4Q 1Q
FY 2Qallocated
1Q
3Q 2Q
4Q 3Q FY 4Q 1Q
FY 2Q 1Q
3Q 2Q
4Q 3Q
FY 4Q FY
352
352
l
comprises contemporary resorts, city hotels and spas that
ge
a
for
S
m
05 05 05
05 05
05 05
05 05 06
05 06 06
06 0606 0606 06 07
06 07 07
07 07
07 07
07 07 07 en
appeal to a attributed
younger audience.
l
property sales¹ *Hotel management
*Hotel management
fees attributed
fees for hotels
for
managed
hotels managed
and and
o
Vietnam Pr t
Operations
Lijiang/Lhasa
owned by
owned
BTH allocated
by BTH allocated
to hotel to
management
hotel management
segment.
segment.
Total (Ha) Landbank
Rapid Rapid
GrowthGrowth
Since Inception
Since Inception
Average 2 Bedroom Both brands have garnered over 300 prestigious international
537
Spa
435 550 340
Usage (Years)
DPV size (Sqm²) and local honours since 1994 for their resorts, hotels, spas,
* 1994 1994
1.Assuming landbank allocated for property sales is 30% of total landbank. 2007 Potential
2007 number 2010
600
2010
420 1,070 170 2,260 design and corporate environmental programmes. Among
= Sum of its 7 key business segments (%)them are those awarded by Condé Nast Traveler US, Condé
2. Average size of Banyan Tree Villa is approximately 350 - 550 sqm
(1 Ha = 10,000 sqm)
True value of Banyan Tree
of Villas (units)³ EBITDA EBITDA
Margin Margin (%)
Nast Traveller UK, Business Traveller, Travel+Leisure, TIME and
3. Assuming 70% allocated for buildable area and 30% for infrastructure.ResortsResorts
& Hotels & Hotels
4. Based on historical average of 100 units sold p.a. Hotel Investment*
Hotel Investment*
GoldSpaKey.
Operations
Spa Operations Gallery Operations
Gallery Operations
ancy
%) (%)
Room Room
Rates ($)
Rates ($) Design Design
Hotel Management*
Hotel Management*
PropertyProperty
Sales Sales Design &Design
Others& Others
& Other&
s Others
.0
0 00.000.0 00.0
00.0 00.0
00.0 00.0 00 00 00 00 00 00 Group Group
In In
Sal lery
Sal lery
Ho stme
Ho stme
00.0
00.0 00.000.0 00.0
00.0 00.0
00.0 00.0
An integrated
An integrated
ve
ve
00 00 00 00 00 00
27
es
es
tel nt
tel nt
l
l
Banyan Tree Holdings Limited Annual Report 2007
Ga
Ga
Keys Keys 00 00 00 00 00 00
model
model
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