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Banyan Tree Holdings Limited 2Q11 Results Briefing
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FORWARD LOOKING STATEMENTS
This document is provided to you for information only and should not be relied on or used as a basis for making any specific investment, business or commercial decision. No representation or warranty, expressed or implied, is made as to, and no reliance should be placed on, the information or opinions contained herein. This document does not constitute and should not be construed as, any offer or solicitation for the subscription, purchase or sale of any securities of Banyan Tree Holdings Limited (“Banyan Tree”). Nothing in this document should be construed as a recommendation regarding the securities of Banyan Tree.
Certain statements in this document may constitute "forward-looking statements”, including statements regarding, amongst other things, Banyan Tree’s business and growth strategy. These statements reflect Banyan Tree’s expectations and are subject to risks and uncertainties that may cause actual results to differ materially and may adversely affect the outcome and financial effects of the plans described herein. You are cautioned not to rely on such forward-looking statements. Banyan Tree disclaims any obligation to update their view of such risks and uncertainties or to publicly announce the result of any revisions to the forward-looking statements made herein, except where they would be required to do so under applicable law.
Banyan Tree is under no obligation to keep current the information contained in this document and any opinions expressed in it are subject to change without notice. None of Banyan Tree or any of its affiliates, advisers or representatives shall have any liability whatsoever for any loss whatsoever arising from any use of this document or its contents, or otherwise arising in connection with this document (whether direct, indirect, consequential or other). This document is not intended to provide professional advice and should not be relied upon in that regard. Prospective investors should consult their tax, legal, accounting or other advisers.
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AGENDA
1. Overview Ho KwonPing
2. Financial Highlights Eddy See
3. Outlook Ariel Vera
4. Portfolio (Existing and Pipeline) Ariel Vera
3 Overview | Financials | Outlook | Portfolio (Existing and Pipeline)
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OverviewOverview
4 Overview | Financials | Outlook | Portfolio (Existing and Pipeline)
";"Ì1. 2Q11 RESULTS BRIEFING 2Q11 results: . Revenue 3% to S$63.6m . EBITDA doubled to S$3.6m . LATMI reduced 21% to S$7.0m LBR sale: . Transaction profit; S$16.7m (56% margin). . Accounting profit; S$1.8m (6% margin). Loss at PATMI level due to: . Low season of the year. . Run up to Thai election affects hotel operation. . Slow Property Sales. Partially cushioned by . Good performance in Fee-Based segment. 1H11 results: . Revenue 6% to S$177.9m . EBITDA 5% to S$36.1m . PATMI at profit of S$3.0m vs loss of S$1.5m
5 Overview | Financials | Outlook | Portfolio (Existing and Pipeline)
";"Ì1. 2Q11 RESULTS BRIEFING
3rd quarter, our traditional low season, will be challenging and possibly unprofitable.
. Uncertainties remain in key guest markets.
. Closure of Sheraton Phuket for renovation; to be re-opened as Angsana Phuket in Dec 2011.
. Owned hotels forward bookings for 3Q11 higher than last year; will cushion shortfall. • Thailand 57% • Non-Thailand 2% •Overall 18%
. Slow sales of holiday homes in Thailand will continue as investors remain cautious.
6 Overview | Financials | Outlook | Portfolio (Existing and Pipeline)
";"Ì1. 2Q11 RESULTS BRIEFING
Deployment of Funds:
. Group cash currently at S$150m ; Private equity funds raised S$560m.
. Focus on China / Vietnam projects. • Branded property developments. 5 projects in China. Integrated resort in Vietnam.
7 Overview | Financials | Outlook | Portfolio (Existing and Pipeline)
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FinancialFinancial HighlightsHighlights
8 Overview | Financials | Outlook | Portfolio (Existing and Pipeline)
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REVENUE, EBITDA & PATMI for 2Q11 Highlights
2Q11 vs 2Q10
S$m Revenue 3% mainly from: 2Q11 vs 2Q10 1H11 vs 1H10 . Fee-based segment due to:
$200.0 • hotel management fees from new 6% $177.9 resorts.
$180.0 $168.2 • fund management fees.
• sales from Gallery operation. $160.0 but partially offset by: ¡ ¡ ¡ ¡ $140.0 . revenue for Hotel Investments segment due to run up to Thai election & cessation of revenue from Dusit and LBR hotels. ¡ ¡ $120.0 ¡ ¡ . revenue recognition from property villas sales, partially cushioned by divestment of $100.0 a development site to China Fund.
EBITDA 104% and PATMI 21% due to
$80.0 3% $63.6 above & other income (gain on sale of $61.9 LBR). $60.0 5% 1H11 vs 1H10
$34.4 $36.1 Revenue 6% due to:
$40.0 . revenue from Property Sales from 309% divestment of development sites to China $20.0 104% Fund.
$1.8 $3.6 $3.0 . revenue from Fee-based segment due to $0.0 reasons as mentioned above. ($1.5) ($8.9) 21% ($7.0) -$20.0 but partially offset by: ¡ ¡ ¡ ¡ 2Q10 2Q11 1H10 1H11 . revenue from Hotel Investments segment as mentioned above.
REVENUE EBITDA PATMI EBITDA 5% for 1H11 mainly due to
revenue.
Note: Variance is computed based on figures to the nearest thousands & in line with announcement in masnet. PATMI 309% due to EBITDA and lower depreciation following the disposal of Dusit & LBR. 9 Overview | Financials | Outlook | Portfolio (Existing and Pipeline)
";"Ì1. KEY FINANCIAL RATIOS
2Q11 2Q10 1H11 1H10 Income Statement (Restated) (Restated)
EBITDA margin 5.6% 2.8% 20.3% 20.5%
PAT margin -14.0% -18.4% 3.5% 1.0%
Earnings per share (cents) (0.92) (1.17) 0.40 (0.19)
As at As at Balance Sheet 30/06/11 31/12/10 (Restated)
Tangible Net Worth (TNW) (S$mil) 615.0 704.8
Net Debt/Equity ratio 0.38 0.29
Net Asset Value/share (S$) 0.64 0.68
10 Overview | Financials | Outlook | Portfolio (Existing and Pipeline)
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EBITDA BY SEGMENTS Hotel Investments1 Highlights
% 2Q11 vs 2Q10 S$m 2Q11 vs 2Q10 1H11 vs 1H10 $20.0 50% ᜑ EBITDAᜑ 17% & EBITDA $16.4m margin 2% points 40% respectively due to: $15.0 -21% $12.9m . Lower operating costs at 30% Sheraton Grande Laguna $10.0 Phuket in view of termination of hotel management 20% agreement. $5.0 15.8% but partially reduced by lower 13.9% 10% revenue due to: $0.0 . Run up to Thai election. 0% . Cessation of contribution from -$5.0 17% ($3.7m) Dusit & LBR hotels. ($4.4m) -10% -11.3% -13.2% 1H11 vs 1H10 -$10.0 -20% ᜓ EBITDA 21% & EBITDA 2Q10 2Q11 1H10 1H11 ᜓ margin 2% points, mainly due to lower revenue with EBITDA (S$M) EBITDA margin reasons as mentioned above.
1. Hotel management fees attributed for hotels managed and owned by BTH was allocated to hotel management segment. 2. Variance is computed based on figures to the nearest thousands. 11 Overview | Financials | Outlook | Portfolio (Existing and Pipeline)
";"Ì1. EBITDA Hotel Investments1 Thailand Hotels Highlights
2Q11 vs 2Q10 S$m 2Q11 vs 2Q10 1H11 vs 1H10 12.0 ᜑ EBITDA 10% due to: $10.1m 10.0 . Lower operating costs at Sheraton Grande Laguna 8.0 -36% Phuket in view of termination of $6.4m hotel management agreement. 6.0 but partially reduced by lower 4.0 revenue due to:
2.0 . Run up to Thai election.
0.0 . Cessation of contribution from Dusit & LBR hotels. -2.0 1H11 vs 1H10 -4.0 ᜓ EBITDA 36% mainly due to: 10% -6.0 ($5.3m) ᜓ ($5.8m) . Revenue resulting from cessation of contribution from -8.0 Dusit and LBR hotels. 2Q10 2Q11 1H10 1H11
EBITDA (S$M)
1. Hotel management fees attributed for hotels managed and owned by BTH was allocated to hotel management segment. 2. Variance is computed based on figures to the nearest thousands. 12 Overview | Financials | Outlook | Portfolio (Existing and Pipeline)
";"Ì1. EBITDA Hotel Investments1 Non - Thailand Hotels Highlights
2Q11 vs 2Q10 & 1H11 vs 1H10 S$m 2Q11 vs 2Q10 1H11 vs 1H10 10.0 ᜑ EBITDA ᜑ15% (2Q11 vs 2Q10) & 9.0 EBITDA 3% (1H11 vs 1H10) mainly due to: 8.0 . Higher revenue from Maldives in 3% 2Q11 as performance last year 7.0 $6.5m $6.3m were impacted by Icelandic 6.0 volcano ash crisis.
5.0
4.0
3.0
2.0 $1.6m $1.4m 15% 1.0
0.0 2Q10 2Q11 1H10 1H11
EBITDA (S$M)
1. Hotel management fees attributed for hotels managed and owned by BTH was allocated to hotel management segment. 2. Variance is computed based on figures to the nearest thousands. 13 Overview | Financials | Outlook | Portfolio (Existing and Pipeline)
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EBITDA BY SEGMENTS Property Sales Highlights
2Q11 vs 2Q10 S$m % ¢ ¢ ¢ ¢ 2Q11 vs 2Q10 1H11 vs 1H10 EBITDA & EBITDA margin 147% and ¢ ¢ $16.0 80% ¢ ¢ 46% points due to: $14.2m 70% $14.0 . Revenue recognition for only 2 units of Laguna village townhomes as 60% $12.0 57% opposed to 2 units of Laguna village townhomes and 3 units of Banyan 50% Tree Bangkok suite in 2Q10. $10.0 $9.0m 40% 28.9% 1H11 vs 1H10 $8.0 37.4% £ £ 35.6% 30% £ £ EBITDA and EBITDA margin 57% £ £ £ £ and 2% points respectively due to: $6.0 20% . Gain on divestment of a development 10% $4.0 site in Lijiang to China Fund. $2.3m 0% Offset by: $2.0 -10%. Revenue recognition for only 1 unit -16.7% each of Laguna Village Bungalow and $0.0 -147% BT Phuket Double Pool Villa and 2 ($1.1m) -20% units of Laguna village townhomes in -$2.0 -30% 1H11 as opposed to 13 units of 2Q10 2Q11 1H10 1H11 Laguna Village Townhome/ Bungalow, BT Phuket Villas and BT Bangkok Suites in total in 1H10. EBITDA (S$M) EBITDA margin
1. Variance is computed based on figures to the nearest thousands.
14 Overview | Financials | Outlook | Portfolio (Existing and Pipeline)
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EBITDA BY SEGMENTS Fee-based Segment1 Highlights
S$m 2Q11 vs 2Q10 1H11 vs 1H10 % 2Q11 vs 2Q10 & 1H11 vs 1H10 $18.0 100% ᜑ EBITDA 57% for 2Q11 and $15.7m 90% ᜑ $16.0 23% forᜑ 1H11 and EBITDA 23% margin 8% points for 2Q11 80% $14.0 ᜑ $12.8m and 2% points for 1H11 due 70% to higher revenue. $12.0 ᜑ 60% . Revenue due to: $10.0 $9.0m ᜑ 50% • Hotel management fee from new resorts. $8.0 57% 40% $5.8m ᜑ • Fund management fee $6.0 34.1% 30% following completion of $4.0 27.5% 29.0% final close of China Fund 26.1% 20% in Jan’11. $2.0 10% ᜑ • Revenue for Spa/Gallery operations from new $0.0 0% resorts/ outlets. 2Q10 2Q11 1H10 1H11
EBITDA (S$M) EBITDA margin
1. Hotel management fees attributed for hotels managed and owned by BTH was allocated to hotel management segment. 2. Variance is computed based on figures to the nearest thousands. 15 Overview | Financials | Outlook | Portfolio (Existing and Pipeline)
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COSTS & EXPENSES FOR 2Q11 Highlights
2Q11 2Q10 Var* S$'Mil S$'Mil %
due to divestment of a development site offset by lower Cost of properties sold 3.8 2.3 68% cost from revenue from property sales in line with Gallery sales but offset by lower cost from Cost of operating supplies 6.0 5.1 16% revenue from Hotel Investments due to write-back of provision for doubtful debts & Administrative expenses 11.1 9.7 15% exchange loss
Salaries and related expenses 26.0 24.8 5% due to annual salary adjustments
Sales and marketing expenses 2.9 5.0 -42% due to cessation of Dusit and LBR hotels.
Other operating expenses 12.6 14.1 -10% due to cessation of Dusit and LBR hotels.
62.4 61.0 2%
* Variance is computed based on figures to the nearest thousands & in line with announcement in masnet. 16 Overview | Financials | Outlook | Portfolio (Existing and Pipeline) OPERATING PERFORMANCE ";"Ì1. Average occupancy
Total Hotels1 Banyan Tree Resorts2 Highlights
100% 100% 2Q11 vs 2Q10 90% £ £ 90% £ £ Group wide occ 3% points to 80% 80% 65% 64% 67% 65% 46%, mainly due to newly 64% 70% 62% 62% 70%57% 63% 58% 62% 56% 59% 55% 57% 55% opened resorts such as BT 60% 60% 54% 47% 61% 51% Mayakoba, BT Cabo Marques, 59% 43% 57% 50% 55% 50%55% 53% 51% 50% 52% 55% 54% 55% 54% 48% 52% 50% BT Al Wadi, BT Hangzhou and 40% 44% 43% 46% 40% 46% BT Club & Spa Seoul. In 30% 30% addition, Maldives properties & 20% 20% BT Bangkok occ were higher as 10% 10% their performance last year were 0% 0% impacted by political riots and 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 Icelandic volcano ash cloud crisis respectively. Angsana Resorts On “Same Store” basis, occ £ £ £ £ 8% points mainly from BT 100% Bangkok and properties in 90% Maldives due to reasons 80% mentioned above. 70% 59% 56% 57% 60% 53% Banyan Tree resorts’ and 53% 52% 50% 47% 46% Angsana resorts’ occ on “Same 50% 44% 56% 59% 54% 53% 52% 42% Store” basis were almost in line 40% 47% 42% with 2Q10. 30% 34% 33% 20% Total Resorts 10% Same Store Charts Basis3 0% 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11
1. Total hotels refer to company total including hotels in Laguna Phuket, Banyan Tree & Angsana Resorts. 2. Bangkok is excluded from Banyan Tree Resorts as it is the only city hotel and thus not comparable with the resort type. 3. Same Store Concept exclude Dusit Laguna Phuket which was sold in October 2010 and Laguna Beach Resort which was sold in May 2011 and all new resort opened/rebranded in the past 2 yrs: BT Mayakoba, BT Ungasan, BT Hangzhou, BT Al Wadi, BT Cabo Marques, BT Club & Spa Seoul, BT Samui, BT Macau, Ang Fuxian Lake and [abnormal hotels: BT Ringha (open for 6 mths).] 17 Comparatives for Same Store concept for prior periods have been adjusted to include BT Sanya and to remove Dusit & LBR. Overview | Financials | Outlook | Portfolio (Existing and Pipeline) OPERATING PERFORMANCE ";"Ì1. Average daily rates (S$)
Total Hotels1 Banyan Tree Resorts2 Highlights
1,200 500 2Q11 vs 2Q10 440 1,100 £ £ 426 £ £ 394 1,000 Group wide ARR 1% due to BT 400 362 366 415 862 Seychelles and the inclusion of 2 390 900 373 319 new resorts, ie. BT Samui and BT 304 319 362 300 348 800 861 746 278 726 Macau. 300 316 700 653 652 292 738 277 277 271 600 565 538 551 On “Same Store” basis, ARR ¢ ¢ 507 645 625 662 ¢ ¢ 483 200 8% mainly due to Sheraton 500 539 505 518 518 Grande. 400 463
100 300 Banyan Tree resorts’ ARR on £ £ £ £ 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 “Same Store” basis 6%, due to BT Seychelles and BT Sanya. Angsana Resorts Angsana resorts’ ARR on “Same £ £ £ £ 500 Store” basis 4% mainly from Ang Bintan and Ang Great Barrier Reef. 400 362 360 344 330 330 360 286 282 293 300 330 274 294 261 286 282 274 255 238 200 215 222 Total Resorts Same Store Charts Basis3 100 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11
1. Total hotels refer to company total including hotels in Laguna Phuket, Banyan Tree & Angsana Resorts. 2. Bangkok is excluded from Banyan Tree Resorts as it is the only city hotel and thus not comparable with the resort type. 3. Same Store Concept exclude Dusit Laguna Phuket which was sold in October 2010 and Laguna Beach Resort which was sold in May 2011 and all new resort opened/rebranded in the past 2 yrs: BT Mayakoba, BT Ungasan, BT Hangzhou, BT Al Wadi, BT Cabo Marques, BT Club & Spa Seoul, BT Samui, BT Macau, Ang Fuxian Lake and [abnormal hotels: BT Ringha (open for 6 mths).] 18 Comparatives for Same Store concept for prior periods have been adjusted to include BT Sanya and to remove Dusit & LBR. Overview | Financials | Outlook | Portfolio (Existing and Pipeline) OPERATING PERFORMANCE ";"Ì1. REVPAR (S$)
Total Hotels1 Banyan Tree Resorts2 Highlights
800 350 2Q11 vs 2Q10
700 300 RevPAR for both Group wide £ £ £ £ 261 and “Same Store” basis 8% £ £ 250 253 600 £ £ and 9% respectively mainly £ £ 250 532 £ £ 261 due to Occ. 217 205 500 499 474 447 200 413 406 215 207 211 Both Banyan Tree and Angsana 171 400 406 resorts’ RevPAR on “Same
329 £ £ £ £ 150 182 150 £ £ £ £ 141 137 310 284 298 150 287 Store” basis 5% and 2% 300 355 340 364 147 143 146 respectively mainly due to £ £ 135 £ £ 123 274 278 257 246 249 ARR. 100 200 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11
Angsana Resorts
300
250 202 195 198 200 173 202 160 165 150 131 173 134 150 157 108 150 160 131 100 95 86 101 73 50 Total Resorts Same Store Charts Basis3
0 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 1. Total hotels refer to company total including hotels in Laguna Phuket, Banyan Tree & Angsana Resorts. 2. Bangkok is excluded from Banyan Tree Resorts as it is the only city hotel and thus not comparable with the resort type. 3. Same Store Concept exclude Dusit Laguna Phuket which was sold in October 2010 and Laguna Beach Resort which was sold in May 2011 and all new resort opened/rebranded in the past 2 yrs: BT Mayakoba, BT Ungasan, BT Hangzhou, BT Al Wadi, BT Cabo Marques, BT Club & Spa Seoul, BT Samui, BT Macau, Ang Fuxian Lake and [abnormal hotels: BT Ringha (open for 6 mths).] 19 Comparatives for Same Store concept for prior periods have been adjusted to include BT Sanya and to remove Dusit & LBR. Overview | Financials | Outlook | Portfolio (Existing and Pipeline) OPERATING PERFORMANCE ";"Ì1. (HOTEL RESIDENCES) SALES PROGRESS Highlights
Sales 2Q11 vs 2Q10 Recognized In 2Q11, nil units were sold. 1 Units Total Units Total for units Avg Unrecognized cancelled unit relates to BT Sold Value Sold* Value sold Price revenue as at Phuket villa sold in 1Q11. 2Q 2Q 1H 1H 1H 1H 30 June Nil sales in 2Q10.
S$’Mil S$’Mil S$’Mil S$’Mil S$’Mil 4 cancelled units relates to BT Lijiang villa/townhome. 1H11 vs 1H10 BT Lijiang ------7.9 In 1H11, nil unit was sold, but there was 1 cancelled unit for BT Cancellations (1) (4.1) (1) (1.1) - 1.1 - Lijiang townhome. In 1H10, we sold 2 units of BT Bangkok suites, 1 unit each of BT Lijiang townhome and BT 2011 (1) (4.1) (1) (1.1) - 1.1 7.9 Bintan villa. 4 units of Dusit villas previously sold were exchanged to 2 units of LV townhome. 2010** (4) (7.5) (3) (5.1) (2.3) 1.7 4.7 3 cancellations were for BT Lijiang villa/townhomes sold in prior year. ¢ ¢ £ £ £ £ £ £ £ £ £ £ ¢ ¢ £ £ £ £ £ £ £ £ £ £ There were no new sales in 1H11 Variance % 75% 45% 67% 78% NM 35% 68% vs 4 in 1H10. As at 1H11, we have unrecognised revenue of S$7.9 mil, 68% above 1H10 from sales in BT Lijiang.
* Units sold and cancelled in the same period will be netted off and not shown separately as units sold and units cancelled. ** 1H10’s sales recognised and recognised revenue have been restated, in line with the change in Group policy from “percentage of completion method” to “completion method” w.e.f. FY2011. 20 Overview | Financials | Outlook | Portfolio (Existing and Pipeline) OPERATING PERFORMANCE ";"Ì1. (LAGUNA PROPERTY SALES) SALES PROGRESS Highlights
Sales 2Q11 vs 2Q10 Recognized In 2Q11, we sold 2 units of Loft, 1 Units Total Units Total for units Avg Unrecognized unit each of LV townhome and Sold Value Sold* Value sold Price revenue as at bungalow. 1 unit of Loft was also cancelled. 2Q 2Q 1H 1H 1H 1H 30 June In 2Q10, we sold 1 unit of LV S$’Mil S$’Mil S$’Mil S$’Mil S$’Mil townhome but there were cancellation of 1 unit each of Loft and villa condominium.
Condominiums 2 0.6 2 0.6 - 0.3 3.5 1H11 vs 1H10 In 1H11, we sold a total of 5 units i.e Townhomes 1 0.9 2 1.7 0.9 0.9 0.9 2 units each of Lofts and LV townhome, and 1 unit of LV Bungalows 1 2.0 1 2.0 - 2.0 2.0 bungalow. Cancellations (1) (0.6) (2) (1.6) - 0.8 - Cancellations relate to 1 unit each of Loft and LV townhome. In 1H10, we sold 2 units of LV townhomes and 1 unit bungalow. In 2011 3 2.9 3 2.7 0.9 0.9 6.4 addition, 2 units were exchanged from Hotel Residences. There were also 2 units of Loft and 1 unit of villa condominium being cancelled. ¤ ¤ ¤ ¤ 2010** (1) (0.3) 2 2.8 2.5 1.4 4.4 New Sales of 5 units 67% vs 1H10’s 3 units. As at 1H11, we have unrecognised £ £ £ £ ¢ ¢ ¢ ¢ ¢ ¢ £ £ £ £ ¢ ¢ ¢ ¢ ¢ ¢ revenue of S$6.4 mil, 45% higher Variance % NM NM 50% 4% 64% 36% 45% compared to 1H10.
* Units sold and cancelled in the same period will be netted off and not shown separately as units sold and units cancelled. ** 1H10’s sales recognised and recognised revenue have been restated, in line with change in the Group policy from “percentage of completion method” to “completion method” w.e.f. FY2011. 21 Overview | Financials | Outlook | Portfolio (Existing and Pipeline)
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OutlookOutlook
22 Overview | Financials | Outlook | Portfolio (Existing and Pipeline)
";"Ì1. Outlook 3rd quarter, our traditional low season, expected to be challenging & probably unprofitable. . Key markets eg. Europe, weak and uncertain. . Sheraton Phuket closed for renovation; to be rebranded Angsana Phuket in Dec 2011. . Recent Thai election generally peaceful; favourable to hotels we own in Thailand. . Property sales in Thailand will continue to be slow. Group cash currently of S$150m; Private equity funds raised S$560m . Primary focus on China / Vietnam projects. • Branded property developments. 5 projects in China. Integrated resort in Vietnam.
23 Overview | Financials | Outlook | Portfolio (Existing and Pipeline)
";"Ì1. Hotel Investment 3rd Qtr will be challenging. . Low season of the year. . Key markets, eg. Europe remain weak & uncertain. . No contribution from Sheraton Phuket during renovation period. Recent Thai election generally peaceful; will be positive for hotels we own in Thailand.
Forward bookings (OTB) for 3Q11 up for hotels we own higher overall . Thailand 57% . Non-Thailand 2% . Overall 18% Growth in China travel market, both domestic & outbound, will mitigate weak European market. . China nationals visiting our resorts 136% vs 2Q10. . Overall contribution to room revenue 105% vs 2Q10.
24 Overview | Financials | Outlook | Portfolio (Existing and Pipeline)
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ALL HOTELS*(Same Store) On-The-Book (“OTB”) Room Revenue Highlights
% Overall On-the-book (“OTB”)
76% room revenue for 3Q11 vs 80% 3Q10 recorded improvement from all hotels : 70% ᜑ . Thailand OTB 76 %. 60% ᜑ . Non-Thailand OTB 14%. 50% 35% ᜑ 40% 27% 26% . Overall 26%. 24% 30% 16% 15% 15% 12% 13% 6% 7% 20% 4% 14% 2% 12% 10%
-3% -2% 0% -5% -11% -10% -20% -20%
-30% 1Q 10 v s 1Q 0 9 2 Q 10 v s 2 Q 0 9 3 Q 10 v s 3 Q 0 9 4 Q 10 v s 4 Q 0 9 1Q 11 v s 1Q 10 2 Q 11 v s 2 Q 10 3 Q 11 v s 3 Q 10 * *
Thailand Non-Thailand Total Hotels
* Total Hotels refer to company total including hotels in Laguna Phuket, Banyan Tree & Angsana Resorts. ** Based on OTB in late July 2011. 25 Overview | Financials | Outlook | Portfolio (Existing and Pipeline)
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HOTEL INVESTMENTS* On-The-Book (“OTB”) Room Revenue Highlights
% For those hotels we owned, 60% OTB room revenue for 3Q11 57% vs 3Q10 recorded an overall 50% improvement :ᜑ . Thailand OTB 57%. 40% 35% 34% ᜓ . Non-Thailand OTB 2%. 30% 24% 28% ᜑ 17% . Overall OTB 18%. 20% 24% 15% 16% 18%
7% 13% 10% 12% 2% 6% 4% 1% 0%
-10% -4% -2% -11% -20% -20% -30% 1Q10 vs 1Q09 2Q10 vs 2Q09 3Q10 vs 3Q09 4Q10 vs 4Q09 1Q11 vs 1Q10 2Q11 vs 2Q10 3Q11 vs 3Q10**
Thailand (Laguna Phuket & Bangkok) Non-Thailand Total Owned Hotels
* Hotel Investments refers to hotels we have ownership interest in. ** Based on OTB in late July 2011 and exclude Laguna Beach Resort which was sold in May 2011. 26 Overview | Financials | Outlook | Portfolio (Existing and Pipeline)
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Hotel Residences / Property Sales
Holiday home sales in Thailand expected to be slow as investors remain cautious.
We will continue our strategy of product diversification through:
. Sale of development projects / sites. . Planned entry into branded primary housing projects.
27 Overview | Financials | Outlook | Portfolio (Existing and Pipeline)
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Management, Spa and Design Services
We expect to open the following resorts this year.
i) Banyan Tree Riverside, Shanghai
ii) Angsana Hangzhou, China
iii) Angsana Balaclava, Mauritius
We expect to open 11 new spa outlets in the next 12 months.
We have recently signed 3 new hotel management contracts.
28 Overview | Financials | Outlook | Portfolio (Existing and Pipeline)
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STEADY PIPELINE GROWTH No. of keys – Banyan Tree and Angsana hotels1 Highlights
10,000 CAGR of 35% based on contracts completion 9,000 CAGR 2009 – 2014 dates. = 35% 8,000 Room keys grow 4 folds to 7,048. 7,048 7,000 More than half of the 6,000 additional keys is 5,260 2,992 managed only with no 5,000 equity. 4,042 1,903 No. ofNo. keys 4,000 1,310 3,000 2,959 2,410 4,056 1,080 2,000 1,633 974 1,551 3,357 1,119 954 835 451 2,732 1,000 415 1,879 344 1,436 1,100 610 704 798 0 2006A 2007A 2008A 2009A 2010E 2011E 2012E 2013E 2014E
No. of Hotels: (7) (10) (17) (20) (23) (27) (34) (45) (57) Banyan Tree Angsana
1. Based on contracts that are already signed 29 Overview | Financials | Outlook | Portfolio (Existing and Pipeline)
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PortfolioPortfolio (Existing(Existing andand Pipeline)Pipeline)
30 Overview | Financials | Outlook | Portfolio (Existing and Pipeline)
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EXISTING PORTFOLIO (SUMMARY)
No. of keys No. of Resorts/ Hotels with Residences Resorts/Hotels With Equity Interest No. of Residences available for Resorts/Hotels sales Resorts/Hotels* sale* Banyan Tree 9 6 918 102 Angsana 3 - 198 - Others 3 - 498 - Sub Total 15 6 1,614 102
No. of keys No. of Resorts/ Hotels with Residences Resorts/Hotels Without Equity Interest No. of Residences available for Resorts/Hotels sales Resorts/Hotels* sale* Banyan Tree 8 1 780 27 Angsana 4 - 773 -
Others 1 - 25 - Sub Total 13 1 1,578 27
Grand Total 28 7 3,192 129
* Residences available for sale is part of resorts/hotels under sales and lease back. 31 Overview | Financials | Outlook | Portfolio (Existing and Pipeline)
";"Ì1. EXISTING PORTFOLIO (DETAILS) No. of keys Residences available Resorts/Hotels With Equity Interest Resorts/Hotels* for sale* Equity (%) Banyan Tree 1. Banyan Tree Madivaru, Maldives 6 - 100.0% 2. Banyan Tree Vabbinfaru, Maldives 48 - 100.0% 3. Banyan Tree Ringha, China 32 - 96.0% 4. Banyan Tree Lijiang, China 120 5 83.2% 5. Banyan Tree Bangkok, Thailand 327 11 65.8% 6. Banyan Tree Phuket, Thailand 173 18 65.8% 7. Banyan Tree Seychelles 60 5 30.0% 8. Banyan Tree Mayakoba 107 46 11.1% 9. Banyan Tree Cabo Marques 45 17 13.7% Sub Total 918 102 Angsana 1. Angsana Riads, Marrakech, Morocco 41 - 100.0% 2. Angsana Resort & Spa Ihuru, Maldives 45 - 100.0% 3. Angsana Resort & Spa Velavaru, Maldives 112 - 93.4% Sub Total 198 - Others 1. Sheraton Grande Laguna Resort, Thailand** 334 - 65.8% 2. Laguna Holiday Club Phuket Resort, Thailand 117 - 65.8% 3. Gyalthang Dzong Hotel, China 47 - 80.0% Sub Total 498 -
Grand Total 1,614 102
* Residences available for sale is part of resorts/hotels under sales and lease back. ** To be rebranded as Angsana Laguna Phuket in July 2011. 32 Overview | Financials | Outlook | Portfolio (Existing and Pipeline)
";"Ì1. EXISTING PORTFOLIO (DETAILS)
No. of keys Residences available for Resorts/Hotels Without Equity Interest Resorts/Hotels* sale* Banyan Tree 1. Banyan Tree Bintan, Indonesia 61 27 2. Banyan Tree Sanya, Hainan, China 49 - 3. Banyan Tree Ungasan, Bali, Indonesia 71 - 4. Banyan Tree Hangzhou, China 72 - 5. Banyan Tree Al Wadi, Ras Al Khaimah, UAE 133 - 6. Banyan Tree Club & Spa Seoul, South Korea 50 - 7. Banyan Tree Samui, Koh Samui, Thailand 88 - 8. Banyan Tree Macau, China 256 - Sub Total 780 27 Angsana 1. Angsana Resort & Spa Bintan, Indonesia 106 - 2. Angsana Resort & Spa Great Barrier Reef, Australia 63 - 3. Angsana Oasis Resort & Spa Bangalore, India 79 - 4. Angsana Fuxian Lake, Yunnan, China 525 - Sub Total 773 - Others 1. Maison Souvannaphoum Hotel, Laos 25 - Sub Total 25 -
Grand Total 1,578 27 * Residences available for sale is part of resorts/hotels under sales and lease back. 33 Overview | Financials | Outlook | Portfolio (Existing and Pipeline)
";"Ì1. STRONG PIPELINE OF NEW PROJECTS 2011-2014 (SUMMARY)
No. of keys
No. of Resorts/ Residences/ Resorts/Hotels With Equity No. of Hotels with Properties Interest Resorts/Hotels Residences sales Resorts/Hotels* Planned for sale*
Banyan Tree 3 2 393 120
Angsana 2 1 328 48
Sub Total 5 3 721 168
No. of keys
No. of Resorts/ Resorts/Hotels Without No. of Hotels with Residences Equity Interest Resorts/Hotels Residences sales Resorts/Hotels* Planned for sale*
Banyan Tree 14 5 1,965 236
Angsana 14 3 1,693 231
Sub Total 28 8 3,658 467
Grand Total 33 11 4,379 635
* Residences available for sale is part of resorts/hotels under sales and lease back. 34 Overview | Financials | Outlook | Portfolio (Existing and Pipeline)
";"Ì1. STRONG PIPELINE OF NEW PROJECTS 2011
No. of keys
Residences/ Range of Properties Room Rate Resorts/Hotels Without Equity Interest Resorts/Hotels* Planned for sale* (US$)
Banyan Tree 1. Riverside, Shanghai, China 181 - 180 - 700 Sub Total 181 -
Angsana 1. Hangzhou, China 59 - 140 – 220 2. Balaclava, Mauritius 50 - TBA Sub Total 109 -
Grand Total 290 -
* Residences available for sale is part of resorts/hotels under sales and lease back. 35 Overview | Financials | Outlook | Portfolio (Existing and Pipeline)
";"Ì1. STRONG PIPELINE OF NEW PROJECTS 2012
No. of keys
Residences/ Range of Properties Room Rate Resorts/Hotels With Equity Interest Resorts/Hotels* Planned for sale* (US$) % equity Banyan Tree
1. Lang Co, Hue, Vietnam ¥ 129 80 300 - 350 12.5% Sub Total 129 80
Angsana
1. Lang Co, Hue, Vietnam ¥ 197 48 160 - 210 12.5% Sub Total 197 48
* Residences available for sale is part of resorts/hotels under sales and lease back. + Total equity for this project is US$50 million which will be progressively injected from 2009-2013. 36 Overview | Financials | Outlook | Portfolio (Existing and Pipeline)
";"Ì1. STRONG PIPELINE OF NEW PROJECTS 2012
No. of keys
Residences/ Range of Properties Room Rate Resorts/Hotels Without Equity Interest Resorts/Hotels* Planned for sale* (US$)
Banyan Tree 1. Kerala, India 61 18 420 - 470 2. North Bund, Shanghai, China 130 - 200 - 350 3. Tianjin, China 153 - TBA 4. Jiuzhaigou, China 380 TBA 150 - 350 Sub Total 724 18 Angsana 1. Hot Spring Tengchong, Yunnan, China 33 TBA TBA Sub Total 33 TBA
Grand Total 1,083 146
* Residences available for sale is part of resorts/hotels under sales and lease back. 37 Overview | Financials | Outlook | Portfolio (Existing and Pipeline)
";"Ì1. STRONG PIPELINE OF NEW PROJECTS 2013
No. of keys
Residences/ Range of Properties Room Rate Resorts/Hotels With Equity Interest Resorts/Hotels* Planned for sale* (US$) % equity Banyan Tree 1. Yangshuo, Guilin, China ** 148 - 300 - 350 5.0% 2. Huangshan, China ** 116 40 TBA 5.0% Sub Total 264 40
Angsana 1. Lhasa, Tibet, China ** 131 - 150 - 190 5.0% Sub Total 131 -
* Residences available for sale is part of resorts/hotels under sales and lease back. ** To be transferred to China fund. 38 Overview | Financials | Outlook | Portfolio (Existing and Pipeline)
";"Ì1. STRONG PIPELINE OF NEW PROJECTS 2013
No. of keys
Residences/ Range of Properties Planned Room Rate Resorts/Hotels Without Equity Interest Resorts/Hotels* for sale* (US$) Banyan Tree 1. Costa Navarino, Pylos, Greece 119 - 550 - 600 2. Tamouda Bay, Tetouan, Morocco 102 - TBA 3. Panda Town, Chengdu, China 140 TBA TBA Sub Total 361 -
Angsana 1. Santorini, Greece 111 - 280 - 320 2. Allegria, Cairo, Egypt TBA - 180 - 280 3. Tangshan, Nanjing, China 209 - TBA 4. City Club Langqiao, Chengdu, China 42 TBA TBA 5. Langfang, Hebei, China 100 TBA TBA Sub Total 462 -
Grand Total 1,218 40
* Residences available for sale is part of resorts/hotels under sales and lease back. 39 Overview | Financials | Outlook | Portfolio (Existing and Pipeline)
";"Ì1. STRONG PIPELINE OF NEW PROJECTS 2014
No. of keys
Residences/ Range of Properties Planned Room Rate Resorts/Hotels Without Equity Interest Resorts/Hotels* for sale* (US$) Banyan Tree 1. Sifah, Oman 135 89 570 - 620 2. Tengchong, Yunnan, China 77 25 TBA 3. Beibei, Chongqing, China 88 TBA TBA 4. Sveti Marko, Montenegro 54 54 TBA 5. Dali, Yunnan, China 240 TBA TBA 6. Alqueva, Maurao, Portugal 105 50 TBA Sub Total 699 218
* Residences available for sale is part of resorts/hotels under sales and lease back. 40 Overview | Financials | Outlook | Portfolio (Existing and Pipeline)
";"Ì1. STRONG PIPELINE OF NEW PROJECTS 2014
No. of keys
Residences/ Range of Properties Planned Room Rate Resorts/Hotels Without Equity Interest Resorts/Hotels* for sale* (US$) Angsana 1. Penon del Lobo, La Herradura, Spain# 238 58 TBA 2. Luofushan, Guangdong, China 186 20 TBA 3. Sifah, Oman 150 - 200 - 250 4. Tengchong, Yunnan, China 353 153 TBA 5. Beibei, Chongqing, China 112 TBA TBA 6. 40 West, Cairo, Egypt 50 - 210 - 310 Sub Total 1,089 231
Grand Total 1,788 449
* Residences available for sale is part of resorts/hotels under sales and lease back. 41 Overview | Financials | Outlook | Portfolio (Existing and Pipeline)
";"Ì1. AVAILABLE LANDBANK
Location Year of Acquisition* Area (Ha) Equity (%)
China** Dunhuang 2008 33.3 100.0% Tibet Lhasa 2008 5.5 100.0% Lijiang 2008 9.1 83.2%
Thailand Laguna Phuket 1975 167.8 65.8% Mae Hong Sorn 1990 9.3 65.8% Chiang Rai 1998 144.2 65.8% Chiang Mai 2003 74.4 65.8%
Indonesia Buahan Kaja, Bali 2002 4.5 100.0%
Seychelles Intendance, Mahe 2001 77.7 30.0%
Philippines Diwaran Island 2007 55.1 9.1%
Total 580.9
* Based on earliest year of acquisition. ** Exclude lands that are in the process of transferring to BT China Hospitality Fund (I) 42 Overview | Financials | Outlook | Portfolio (Existing and Pipeline)
";"Ì1. STRONG PIPELINE OF NEW PROJECTS On-hold Projects
NO Resorts/Hotels With Minority Equity Interest Remarks
Banyan Tree
Shareholder currently reviewing project scope & sourcing for project 1. Kashidhoo, Maldives financing.
NO Resorts/Hotels Without Equity Interest Remarks
Banyan Tree
1. Chickmagalur, Karnataka, India Pending legal & authorities clearance.
2. Marrakech, Morocco Pending negotiation of addendum to agreement.
3. Monte Xanic, Mexico Stalled due to owner financing.
4. Shamarra By Banyan Tree, Marrakech, Morocco Pending owner funding.
43 Overview | Financials | Outlook | Portfolio (Existing and Pipeline)
";"Ì1. STRONG PIPELINE OF NEW PROJECTS On-holdProjects
NO Resorts/Hotels Without Equity Interest Remarks
Angsana
1. Chickmagalur, Karnataka, India Pending legal & authorities clearance.
2. Khandala, India Stalled due to owner financing.
3. Corfu, Greece Owner suspended the project.
4. Hong En Si, Chongqing, China Pending land issue resolution by owner.
44 Overview | Financials | Outlook | Portfolio (Existing and Pipeline)
";"Ì1. STRONG PIPELINE OF SPAS (2011-2014)
Spas No. of Spas
Banyan Tree 18
Angsana 23
Grand Total 41
45 Overview | Financials | Outlook | Portfolio (Existing and Pipeline)
";"Ì1. STRONG PIPELINE OF SPAS (DETAIL)
2011 2012 2013 2014
Banyan Tree Banyan Tree Banyan Tree Banyan Tree
1 Riverside, Shanghai, China 1 Jiuzhaigou, China 1 Yangshuo, Guilin, China 1 Tengchong, Yunnan, China
2 Lang Co, Hue, Vietnam 2 Huangshan, China 2 Sveti Marko, Montenegro
3 Lhasa, Tibet, China 3 Tamouda Bay, Tetouan, Morocco 3 Sifah, Oman
4 Kerala, India 4 Panda Town, Chengdu, China 4 Alqueva, Maurao, Portugal
5 Isla Diwaran, Philippines 5 Costa Navarino, Pylos, Greece
6 North Bund, Shanghai, China 6 Dunhuang, China
7 Tianjin, China
Sub Total 1 7 6 4
46 Overview | Financials | Outlook | Portfolio (Existing and Pipeline)
";"Ì1. STRONG PIPELINE OF SPAS (DETAIL)
2011 2012 2013 2014
Angsana Angsana Angsana Angsana
1 Balaclava, Mauritius 1 Lang Co, Hue, Vietnam 1 Lhasa, Tibet, China 1 Sifah, Oman
2 Nusajaya, Malaysia 2 Guangzhou Oakwood, China 2 Isla Diwaran, Philippines 2 Tengchong, Yunnan, China 3 Caesar Park, Kenting, Taiwan 3 United Tower, Kuwait 3 Santorini, Greece 3 40 West, Cairo, Egypt
Golkonda Resort & Spa, Crowne Plaza Yunnan Xi Penon del Lobo, 4 India 4 Shuang Ban Na,Yunnan, China 4 Tangshan, Nanjing, China 4 La Herradura*, Spain
Jiang Xi Shan Qing, Luofushan, Guangdong, 5 Jiangxi, China 5 Langqiao, Chengdu, China 5 China
Xiamen Seaview, 6 Xiamen, China 6 Langfang, Hebei, China
7 Allegria, Cairo, Egypt
8 Gurgaon, India
Sub Total 4 6 8 5
Grand Total 5 13 14 9
47
";"Ì1.
MISSION STATEMENT
“ We want to build a globally recognised brand which by inspiring exceptional experiences among our guests, instilling pride and integrity in our associates and enhancing both the physical and human environment in which we operate, will deliver attractive returns to our shareholders. ”
48