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Singapore-listed Banyan Tree Holdings announce Thursday (26 February) that its earnings before interest, tax, depreciation & amortization (EBITDA) rose by 6 percent to S$19.9 million in Q4 2014 due to gains from revaluation of its investment properties in Seychelles.
It is also dragged down by revenue, which fell 6 percent to S$91.8 million. This is attributed to softer design fees from developments in China and lower contributions from hotel operations amidst the sluggish European market, especially in Russia.
“The pick-up in business volume for Q4, our high season, was slower than expected following the sharp decline in oil prices in Q4 2014 which affected the Russia market,” said Banyan Tree’s Executive Chairman Ho Kwon Ping.
Consequently, the company’s EBITDA for the entire year plummeted by 31 percent to S$51.1 million on an annual basis, while revenue declined by 8 percent to S$327.4 million. The lacklustre results is attributed to the weaker contributions from the firm’s hotel Investments and the absence of the one-off sale of Angsana Velavaru hotel Q1 2013.
“Going forward, amidst the volatility in the global economy, we are cautiously optimistic of a better performance in 2015 boosted in part by confirmed property sales totalling S$110 million which will be substantially recognised in 2015,” Ho added.
Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this or other stories email nikki@propertyguru.com.sg.
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