SINGAPORE (Feb 27): Banyan Tree Holdings reported earnings of $3.9 million for the quarter ended Dec 2017, down by more than half of the $8.5 million posted in the same period a year ago on higher expenses.

Revenue for the quarter grew 9% to $88.9 million due to higher revenue from the group’s property sales segment on the back of higher recognition from Laguna Park townhomes/villas, along with the completion of Cassia Phuket Phase 2 condominiums over 4Q.

The hotels investments segment, too, contributed to the higher group revenue over the quarter, and mainly comprised income from hotels in Thailand in Seychelles, boosted by the opening of Cassia Bintan to paying guests in Sept 2017.

Total costs and expenses however grew 8% to $77 million compared to $71.2 million previously, brought on by higher administrative and sales & marketing expenses as well as cost of properties sold.

Over the quarter, a $1.3 million loss from share of results of joint ventures was also registered as the group had started to equity account for its share of results of the entities since Aug 2017.

For the full year, Banyan Tree booked earnings of $12.9 million in FY17, reversing from its loss of $16.2 million in FY16 as revenue for the period under review grew 3% to $317.5 million.

A dividend of 1 cent per share has been proposed.

In its outlook, the group says it expects to open seven new resorts over the next 12 months along with eight spas under management.

“We continued to record improvement in our operating performance in 2017. RevPAR of our hotels in Thailand increased close to 20% and for property sales, the strong take up also boosted our unrecognised revenue to almost double last year,” says Banyan Tree executive Chairman, Ho KwonPing on the group’s FY17 performance.

“With the global economic growth continuing to improve coupled with our recent partnership with Accor and Vanke, we expect to record continuing growth going forward,” he adds.

Shares in the group closed 3 cents higher at 63 cents on Monday.