Banyan Tree Holdings, which is known for its resorts in Thailand, is seeking to diversify its portfolio by growing its presence in other emerging markets and divesting some of its properties in Thailand.
“The frequent political events in Thailand have prompted us to accelerate our plans to rebalance our asset portfolio in order to reduce our exposure to some countries and increase in others, particularly China,” said Ho Kwon Ping, executive chairman of Banyan Tree.
Banyan Tree already announced the sale of Laguna Phuket hotel, a divestment that will give the group $68.4 million in profit before tax.
Approximately 79 percent of the group’s total assets are based in Thailand, including Dusit Laguna Phuket. Mr. Ho said in a briefing that a more comfortable target to work towards would be 40 percent to 50 percent.
However, he also emphasised that the divestment of its assets in Thailand means the company would focus on unlocking its investments’ value rather than a “fire-sale”.
The group recorded a $9.21-million net loss in the second quarter that ended June 30, more than twice the $4.24-million loss it incurred in 2009.
Its revenue stood at $60.74 million, a marginal year-on-year increase of 2 percent, as travel was affected by the situation in Thailand and other events like the closure of airports in April due to the volcanic ash cloud across European airspace and the FIFA World Cup.
For H1 2010, the group’s net loss hit $3.87 million, compared to a net profit of around $1 million over the same period last year. Revenue for H1 this year increased 6 percent at $156.97 million.