Herald Tribune, September 11, 2006
SINGAPORE Banyan Tree Holdings, an operator of luxury hotels from the Seychelles to Bahrain, said that China would become its fastest-growing market in a global expansion plan that seeks to cut dependence on its flagship resort in Phuket, Thailand.
Banyan Tree, based in Singapore, has more employees assessing opportunities in China than anywhere else, Ho Kwon Ping, chairman of the company, said during an interview. Banyan Tree is focusing its expansion in China as economic growth there raises salaries and lifts consumer spending. At Banyan Tree's new resort in Yunnan Province, almost half the clients paying more than $400 for a night's accommodation are Chinese nationals, Ho said. That could reduce reliance on the Phuket hotel that brings in the bulk of the group's income, said Tan Cheng Wee, an analyst in Singapore at DBS Vickers Securities. "It's in line with the plan to reach out to a more global market," said Tan, who recommends buying Banyan Tree shares. "China should be a very big market to go into, but it should take some time." Banyan Tree's expansion plans include opening 24 new resorts in the next three years, from Greece to Mexico. >>Full article
