Chief Executive
Officer’s
Statement
A Resilient Ecosystem
Banyan Tree Group’s portfolio of diversified offerings across geographies saw us return to profitability in 2022, with a nine-fold increase in Operating Profit to $41.7 million, a compelling turnaround from the previous year’s loss after tax and minority interests of S$55.2 million to a profit of S$0.8 million. This was largely due to a 23% increase in revenue and a 30% increase in hotel RevPAR (on a same-store basis).
Occupancy at Group-owned hotels in Thailand rebounded close to pre-pandemic levels (67% in 4Q22 vs. 70% in 4Q19). Forward bookings in 1Q23 for owned hotels surpassed that of 4Q19 by 12%, with Thailand accounting for 10% of the increase.
In the Fee-based segment, most Group-managed hotels in Asia (excluding China) performed significantly better. Overall occupancy reached 55% in 4Q22, only 2% lower than in 4Q19. Meanwhile, forward bookings were 5% higher than for the same period in 2019.
2022 was a banner year for the Branded Residences and Extended Stay (Property Sales) segment, with a record S$217.2 million in sales. Launches, including the Banyan Tree Grand Residences Oceanfront Villas & Seaview Residences, Laguna Beachside & Seaside condominiums and Skypark II (Celeste), were well received.
With global tourism recovering, the Group launched eight new properties in 2022 and three more at the start of 2023.
Differentiation with a Purpose
Our exceptional service is an important differentiator and reflects our investment in training. Banyan Tree Management Academy and Banyan Tree Spa and Wellbeing Academy have been instrumental in growing talent from within the Group. Our emphasis on skills-based training and dynamic manpower management has built a strong pipeline of talent, allowing the business to grow without compromising on quality.
We have also continued our Sales and Marketing transformation to meet the disruption of our industry. Digital platforms have revitalised our direct channels, driving growth and improving customer engagement. In 2022, we invested in the relaunch of core websites and a more streamlined digital customer journey. Consequently, revenue from direct digital channels has tripled against 2019. Strategic campaigns and promotions attracted new business while retaining loyal customers. In 2022, the rate of repeat guests increased from 10% to 11.2%.
Our passion for environmental protection and community development continues to grow. Building on our brand legacy as a leader in stewardship and sustainable business, we are moving forward with plans to progressively link the compensation of our senior executives to ESG key performance indicators.
Revitalised Growth
With global tourism recovering, the Group launched eight new properties in 2022 and three more at the start of 2023. Milestones include the introduction of new wellbeing brand Banyan Tree Veya with the flagship Banyan Tree Veya Phuket in Thailand; the Group’s debut in Japan (Dhawa Yura Kyoto and Garrya Nijo Castle Kyoto) and Saudi Arabia (Banyan Tree AlUla); and the launch of Banyan Tree Escape with Buahan, a Banyan Tree Escape, Bali in Indonesia.
We expect to open 11 new properties and rebrand one existing property this year. Along with 20 new contracts (mainly hotel management agreements) signed in 2022, we are on track to meet our goal of 100 properties by 2025.
Whilst our continued financial performance is top of mind as we rebound into a resilient recovery, defining ‘good growth’ remains core to our mission and founding ethos of “Embracing the Environment, Empowering People”.
As we celebrate our confident emergence post-pandemic, I remain immensely grateful to our partners, associates, customers and stakeholders for your continued support and recognition.
Eddy See Hock Lye
Chief Executive Officer
