KGI Research Singapore

Singapore's leading broker offering Futures, FX, Equities and Wealth Management.

Banyan Tree Holdings Ltd (BTH SP/B58.SI)

Company Update: 28 Novemeber 2022

Riding on the tailwinds of reopening

Banyan Tree Holdings Ltd (BTH) is a global hospitality group that has grown in its roots in Southeast Asia and is currently operating in 23 countries. The group prides themselves in their consistent high standards of service found across the globe.

We initiate with an OUTPERFORM recommendation and TP of S$0.40, based on 1.24x FY23F P/S. We expect FY22 earnings to improve due to the slow recovery and reopening of the industry.

FY21 financials review: Hounded by Lockdowns.

Despite the continual lockdowns in China over the course of 2021, BTH’s total revenue still grew by 40.2% YoY from S$158mn to S$221mn. This was due to the increase in sales revenue from the property sales segment which grew 76.9% YoY, and it should be noted that their hotel revenue continued to decline 65.7% YoY from 2019 to 2021.

1H22 financials update: A recovery story.

With more countries declaring COVID-19 endemic, international borders have opened. The pent-up travel demand has led to an increase in tourism globally. Accordingly, BTH revenue has improved significantly owing to both domestic and international travelling, with the 1H22 revenue exceeding the FY21 total hotel revenue. This was due mainly to the increase in hotel revenue in both Thailand and Maldives.

New openings.

In 1H22, the group opened and took over the management of 4 new properties and signed 9 different agreements. Without further delay, it is expected to open 14 new hotels and 2 rebranded hotels in the next 12 months, increasing its total key count by 25%.

Valuation & Action

We initiate BTH with an Outperform recommendation and a S$0.40 Target Price. Our TP is based on 1.24x P/S.


Increasing prevalence of global diseases such as Covid-19 and Monkey Pox is a key risk to BTH. Increasing lockdown potentials and possibly stricter travel restrictions in the countries where they operate will negatively impact BTH’s overall revenue and profits.

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