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Banyan Tree's Q4 profit rises 13%, but revenue hit by weaker European demand
RESORT developer Banyan Tree said on Thursday a gain on revaluation of its investment properties in Seychelles helped its net profit increase 13 per cent to S$4.13 million for its fourth quarter ended Dec 31, 2014.
This was despite a 6 per cent drop in revenue to S$91.83 million, which was a result of lower contribution from architectural and design fees from China projects, and less revenue from hotel operations. The latter were affected by the slowdown of the European market, especially Russia, due to the sharp depreciation of the rouble and weak Russian economy.
Russia is plagued with falling oil prices and international economic sanctions imposed on the country.
Banyan Tree said: "The Russia market is one of our key source markets during the high season period."
"Performance of our properties in Thailand, Seychelles and Maldives was largely affected by the drop in demand from the European market, in particular, the Russian market."
Overall revenue per available room decreased by 9 per cent to S$180 for its resorts in Thailand, by 11 per cent to S$594 for its resort in Seychelles, and by 2 per cent to S$489 for its resorts in Maldives.