CHIEF EXECUTIVE OFFICER'S STATEMENT
Eddy See Hock Lye
President and Chief Executive Officer
2023 was Banyan Group’s comeback year. The topline exceeded pre-pandemic levels, indicating that a steady recovery is underway. We emerged financially stronger, with better cash flow and an improved debt-to-equity ratio. On a same-store basis, RevPAR increased by 23% versus pre-pandemic 2019 or 35% versus 2022.
The Residences segment delivered its best-ever performance. Unrecognised revenue in 2023 increased by a hefty 62% year-on-year. Driven mainly by an increase in managed hotels across Asia (outside China), the Fee-based segment saw significant revenue growth of 30%. Meanwhile, Hotel Investments reported a 34% increase in revenue.
Our quest for operational excellence never ceases. Accordingly, we are exploring technology, for example, to improve productivity, efficiency, and guest satisfaction.
Regional Highlights and Growth
Group-owned hotels in Thailand achieved occupancy of 68%, up 17 percentage points from 2022 and surpassing pre-pandemic levels. This was due largely to the influx of tourists as Thailand lifted entry restrictions.
China also relaxed travel restrictions, but the anticipated surge in tourism did not materialise because of the global slowdown and cautious consumer spending. Nevertheless, Banyan Group successfully expanded its operating footprint in the country, from 18 in 2019 to 26 properties in 2023, with another 14 in the pipeline over the next three years. We expect further growth, driven by the healthy pipeline of openings and the domestic and outbound Chinese market in both residences and hospitality. Meanwhile, our buy-back deal with China Vanke will further enhance our revenue and profitability.
We continue to expand our presence in other key regions. In Japan, we opened two new hotels during the year, including the Group’s first Folio-branded property. By end-2024, we expect to manage a total of eight hotels there. In the Americas, we laid the groundwork to roll out a fifth property in Mexico this year with the opening of Banyan Tree Veya, Valle de Guadalupe. Meanwhile, the Middle East region celebrated the Group’s debut in the United Arab Emirates with the launch of Banyan Tree Dubai.
In total, we oversaw 13 openings and signed 18 agreements, making 2023 a very productive year.
Preserving Lessons from the Pandemic
During the pandemic, we found value in seeking a more diversified market mix. We intend to build on this to reduce reliance on a few countries and to take advantage of different countries’ holiday patterns to smooth out fluctuations in room demand.
We will also continue to develop and refine brand experiential offerings that encourage self-discovery and new ways to connect with the world, which are travel aspirations that have endured beyond the pandemic. In 2023, we introduced Beyond, a digital companion offering a holistic experience across the Group’s codified wellbeing framework, and withBanyan, a members’ programme that redefines loyalty by rewarding actions contributing to personal growth and a better world.
Our quest for operational excellence never ceases. Accordingly, we are exploring technology, for example, to improve productivity, efficiency, and guest satisfaction.
As always, I am grateful to our Board members for their wise counsel, our associates for their diligence, and our guests, partners, shareholders, and all stakeholders for their support.
In the post-pandemic chapter, opportunities and challenges abound. Therefore, we must seize the day. With everyone in Banyan Group embracing this approach, I am confident we will continue to thrive into the future.
