SINGAPORE - Resort group Banyan Tree Holdings announced on Friday (May 12) a 124 per cent jump in first-quarter net profit to S$1.2 million from S$535,000 a year ago.

Revenue for the three months to end-March 2017 dropped 9 per cent to to S$90.4 million due to lower revenue recognition from property sales, partially offset by higher contribution from its fee-based segment.

But operating profit rose 4 per cent to S$18.6 million due to higher reversal of bad debts provision following payments by several hotel owners in China, lower exchange losses and lower marketing expenses incurred on hotel marketing and new property projects where revenue was only recognisable upon completion of project.

On its outlook for its hotel investments segment, Banyan Tree said based on hotel forward bookings for owned hotels for the second quarter, overall forward bookings is 17 per cent above the same period last year.

For its property sales segment, deposits for 55 units with total sales value of S$59.9 million was received in the first quarter compared to 39 units of S$27.0 million a year ago. As at end-March, the company has unrecognised revenue of S$142.4 million, compared to S$79.3 million a year ago. Approximately 20 per cent of this will be progressively recognised in the next few quarters of 2017, said Banyan Tree.

It added that its strategic alliance with AccorHotels to develop and manage Banyan Tree branded hotels around the world is expected to contribute positively in the medium term through additional co-development projects.