International hotel operator and developer Banyan Tree Holdings announced an increase of 50% in its property sales revenue for FY2018 to $77 million, up by $25.6 million from a year ago.

The 50% increase is attributed to the higher value of properties for the units sold in FY2018 despite a drop in the number of units sold, the company notes. For the whole of FY2018, the Singapore-listed company sold 128 units from its property sales segment, compared to 139 units sold in FY2017.

Overall unrecognised revenue from property sales as of end-December 2018 was up by 14% y-o-y at $189.9 million, of which 40% will be progressively recognised this year.

Banyan Tree’s overall revenue was $329 million for FY2018, up by 4%, and $92.8 million for 4Q2018, also up by 4%. Meanwhile, overall operating profit rose by 11% y-o-y to $83.1 million for FY2018, and increased by 40% q-o-q to S$29.4 million for 4Q2018.

This comes on the back of higher revenue recognition from its property sales, which were partially offset by the non-consolidation of revenue from its China operations as well as its Seychelles hotel following its sales in November 2018. Underperformance at its Thailand hotels was also a factor in 4Q2018, the company notes, citing an inventory shortage due to ongoing renovations at Banyan Tree Phuket, as well as underperformance at Angsana Phuket.

Looking forward, the company expect to open the following seven new hotel resorts under management in the next 12 months. During a press briefing on Feb 28, the company also announced that they expect to open at least 53 new hotels over the next four years.

“Amidst global slowdown and rising interest rates, we will be conservative and deploy the proceeds from sales to reduce bank borrowings, while continuing to generate growth from existing core businesses,” says Ho Kwon Ping, executive chairman of Banyan Tree Holdings.