Banyan Tree deeper in red in Q3 as political unrest continue to affect Thai resorts

The view from Banyan Tree’s Sanctuary Pool Villa at Koh Samui, Thailand. -- PHOTO: BANYAN TREE
The view from Banyan Tree’s Sanctuary Pool Villa at Koh Samui, Thailand. -- PHOTO: BANYAN TREE

Banyan Tree Holdings reported on Wednesday that its net loss for the third quarter of 2014 widened by 159 per cent to $3.67 million from $1.42 million for the same period a year ago as its resorts in Thailand continued to be affected by political unrest in the country which saw martial law inposed in May this year.

Revenue fell by 9 per cent to $72.75 million for the three months to 30 September 2014 from $79.60 million in the year-ago period, as all three core segments of business performed worse.

The company said its resorts in China also recorded lower revenue mainly due to a general decline in tourist arrival after the knife attack by perpetrators in Kunming railway station in March 2014.

The shortfall in revenue was however partially cushioned by higher revenue from Maldives and Seychelles.

Banyan Tree said there were also marketing expenses incurred on new property projects but whose revenue will only be recognisable predominantly in 2015 upon completion of the projects.

Mr Ho Kwon Ping, executive chairman said in a statement: "Although the Thai economy has stabilized after the Thai military coup, hotel bookings remain slow compared to last year. This has affected our 3Q performance."

"Business will pick up in 4Q14, our high season period with the continuing improvement in global economy and tourist arrivals to Thailand, but it is likely that overall FY2014 will not be profitable."