case study: Operations Managment
Alsha_132
BanyanTreeHotelscasestudy.pdf
ELIZA TSE PAULINE NG
Banyan Tree Hotels & Resorts: Gauging Investors’ Views on Corporate Social
Responsibility Singapore-based Banyan Tree Hotels & Resorts, co-founded by Ho Kwon Ping (“KP”), was a privately held developer and operator of boutique resorts and spas. The Company owned and operated a string of successful island resorts/spas in Thailand, Indonesia, the Maldives, the Seychelles, and Australia. What set the Company apart in the marketplace was its strong commitment to protecting the environment, both physical and human, driven by its leaders’ passionate belief in behaving ethically and responsibly. This pro-environment, socially responsible philosophy was an integral part of the Banyan Tree brand. The Company had major plans for expansion, in Asia and around the world. KP foresaw a doubling in the number of resorts within five years, and many more Banyan Tree-branded spas in the Company’s own resorts and in other hotels. These expansion plans would require financing, and one obvious option was to take the Company public through an Initial Public Offering (an IPO). But KP had his doubts about an IPO. Would investors feel as passionately as he did about the Company’s pro-environment values and initiatives? Would they see the Company’s environmental philosophy as a sensible, long-term business strategy, or would they consider it as merely a marketing gimmick, an expensive, expendable luxury that jeopardised their return on investment? Would he be able to convince them of the long-term strategic benefits of a corporate social responsibility policy? Or would he and his managers have to compromise their values in order to deliver acceptable short-term returns to the Company’s shareholders? And in the depths of the economic depression in Asia and globally in early 2003, was it the right time to go public? These were the questions on KP’s mind as he sat in his office in Singapore, thinking of the way forward for his Company.
Ms Kay Ross prepared this case under the supervision of Dr Eliza Tse and Ms Pauline Ng for class discussion. This case is not intended to show effective or ineffective handling of decision or business processes.
© 2003 by The Centre for Asian Business Cases, The University of Hong Kong. No part of this publication may be reproduced or transmitted in any form or by any means - electronic, mechanical, photocopying, recording, or otherwise (including the Internet) - without the permission of The University of Hong Kong.
Ref. 03/173C 20 August 2003
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03/173C Banyan Tree Hotels & Resorts
Company Background
Banyan Tree Hotels & Resorts was a subsidiary of the Singapore-based Banyan Tree Holdings. Also affiliated with the Group were the publicly listed property development company, Thailand-based Laguna Resorts & Hotels. In 2003, Banyan Tree Holdings owned 15 properties, 32 spas, 42 galleries (retail outlets) and two golf courses. Founded in 1991 with 7 staff, the holding company grew to employ more then 4,500 people of 30 nationalities in 2003. In the early 1990s, Laguna Resorts & Hotels was developing a series of hotels in an integrated resort complex called Laguna Phuket in Thailand. In 1991, Banyan Tree Hotels & Resorts was founded as a new, privately held sister company in order not only to develop but also to operate and market one of the hotels in the Laguna Phuket resort - Banyan Tree Phuket. That hotel became Banyan Tree’s first flagship resort. Other island resorts/spas followed in Bintan, Indonesia; the Maldives and the Seychelles. The Company also operated a Banyan Tree hotel in urban Bangkok, and a Banyan Tree-branded spa at a hotel in Shanghai. Banyan Tree Hotels & Resorts was a family affair – Mr. Ho Kwon Ping was the Chairman; his wife, Claire Chiang, was the vice president of the Group’s retail and merchandising arm – Banyan Tree Gallery, and his brother, Mr. Ho Kwon Cjan, was the head architect of the Group.
Banyan Tree Phuket – Rehabilitating the Site
It was largely because of our experiences with Laguna Phuket that when we decided to have our own chain, we wanted to have an environment-first policy. We were really amateurs to this whole game in the beginning, and we didn’t approach this issue with a very pro-environment ideology on our sleeve. It became something of a necessity when we took over a piece of land and then we went into resort development and we saw how people can absolutely destroy forever the environment. When we started to restore it we also then realised the power that you have as a developer to do good.
- Mr. Ho Kwon Ping, Chairman, Banyan Tree Hotels & Resorts The Laguna Phuket site was about 1,000 acres (400 hectares) of abandoned land that had been dredged up by a tin-mining company. A 1977 United Nations study had concluded that the site was too severely ravaged to sustain development. The dredging processes meant that all the vegetation had been destroyed, so there was no animal life at all, and the soil was totally infertile. At the same time, highly toxic chemicals had been discharged into the lagoons. Unaware of this, the developers tried to build a golf course, installing cast-iron pumps to pump out the water, but the pumps totally disintegrated within four months. So the Company faced a major, and expensive, rehabilitation task. It introduced thousands of tons of topsoil, enhanced with fertilisers, to stabilise the ground; introduced many new plants; installed a substantial water-treatment facility; added chemicals to re-balance the acid content in the water, and stocked the lagoons with fish. As a result, Siberian ducks and other birds began to fly in for the winter; ornithologists from around the world visited to study the migratory birds, and there was abundant fish life in the ponds. Said KP: “It’s basically restored back, so if you go there you wouldn’t know at all what it was like before. It was essentially an exercise in rehabilitation.”
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03/173C Banyan Tree Hotels & Resorts
Building and Operating Environmentally Sensitive Resorts
After the rehabilitation of the Laguna Phuket site came the challenge of building and operating an environmentally sensitive resort. The Company was determined to create a resort that was in harmony with its surroundings, and that did minimal damage to the environment. This meant designing and constructing human-scale, low-rise buildings using indigenous architectural styles and materials; sacrificing as few trees as possible; protecting the local water supply and implementing responsible waste-management methods. At Banyan Tree Resort Phuket and the other resorts that followed [see Exhibit 1], the pro- environment initiatives included:
Avoiding cutting into hill slopes at Banyan Tree Resort Bintan, because of erosion concerns;
Importing thatched roofs and other pre-fabricated building materials from Indonesia for the Banyan Tree Resort Vabbinfaru Maldives, and transferring them to small boats and barges that could navigate the island’s shallow waters without threatening its delicate marine life, in particular its coral reefs;
Installing a 300-metre oil pipe alongside the jetty at Banyan Tree Resort Maldives Vabbinfaru so that oil tankers could pump fuel directly into the resort’s storage tanks, thus preventing oil spillages into the sea;
Installing desalination plants to convert sea water to fresh water at Banyan Tree Resort Maldives Vabbinfaru and Banyan Tree Resort Seychelles;
Meticulously planning the location of the buildings at each resort so as to sacrifice as few trees as possible, and to prevent soil erosion;
At Banyan Tree Resort Bintan, using indigenous Indonesian building materials such as lava stone, granite marble and thatched roofs, and constructing villas on stilts to minimise their “footprint”;
Installing a biological waste water treatment system at Banyan Tree Resort Bintan to recycle waste water for irrigation purposes;
Using refillable containers made from celadon or ceramic for guests’ toiletries at all resorts, and providing only non-toxic, biodegradable toiletries;
Recycling kitchen and household waste;
Planting indigenous and environmentally appropriate plants;
Composting biodegradable waste to make fertiliser;
Minimising the use of wood as a structural element in building construction (using steel or attractive artificial materials that simulate wood where necessary); and
Keeping air-conditioning in public areas to a minimum, and encouraging the use of ceiling fans rather than air-conditioners in the villas (although air-cons were provided).
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03/173C Banyan Tree Hotels & Resorts
The Social Environment
For us, a pro-environment policy includes not just the physical environment but the human environment. We’re not these do-gooders coming in from the West trying to save the animal life and not caring very much about the people. We want to take steps to ensure that the livelihoods of the people who are affected by our developments are equally take care of.
- Mr. Ho Kwon Ping
KP was acutely aware of the disparity in lifestyles between the guests who stayed at Banyan Tree resorts and the local residents and staff. In many tourist resorts around the world, there was always a risk of causing resentment among local residents, and disrupting the traditional economy and ways of life. At all Banyan Tree resorts, therefore, the philosophy was to minimise the potential negative impact of development, and of the influx of wealthy foreigners, by treating local communities and traditions with respect, and by offering employment opportunities to local residents. At Banyan Tree Resort Phuket and its sister hotels in the Laguna Phuket complex, for example, this meant creating employment for 4,000 employees in Laguna Phuket. And many of the employees were 20-30 years old. At Banyan Tree Resort Maldives Vabbinfaru, more than 90 per cent of employees were Maldivian residents. The Company believed in treating its staff well. Salaries were higher than the industry average, and well-equipped on-site staff dormitories were provided. Staff members had access to the recreational and food and beverage facilities on site, and were even invited to spend a night in a resort, as guests, to experience the Banyan Tree magic. And the Company had a substantial training programme for all staff, not only in specific job skills and how to provide exceptional customer service, but also in how to uphold the Company’s quality and pro-environment standards. All of these practices, as well as the Company’s clearly demonstrated pro- environment values, helped to attract good staff, build loyalty and reduce turnover. In an effort to support the local economy, the general policy at all resorts was to purchase fresh produce from local markets and traders, and to engage local craftspeople to produce traditional craft items for sale in the Company’s Banyan Tree Gallery retail outlets found in the hotels. The Company (and the Group as a whole) also felt a strong responsibility towards the communities in which it operated. The Group’s Community Relations Department, personally supervised by KP, managed community outreach programmes in areas such as education and childcare. In Phuket, initiatives included offering scholarships to needy children; operating a childcare centre; providing English-language courses and medical services; hosting activities for senior citizens; constructing a food centre with hygienic facilities for local beach-front food hawkers, and launching a handicraft project in which village women in Yasothon, Thailand, were subcontracted to make Thai cushions for use in the Company’s resorts. The Company was committed to establishing similar projects in every community in which it operated. As one of the Company’s marketing brochures stated: “At Banyan Tree, we believe in going beyond the physical to embrace and nurture the communities in which we operate. Only then can resorts in the Developing World be agents of change and economic development for those who build them, work in them and support them.”1
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1 “The Green Imperative” booklet, Banyan Tree Hotels & Resorts [undated].
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The Green Imperative Fund
Perhaps the most public demonstration of the Company’s pro-environment philosophy was its “Green Imperative Fund”, established in January 2002. The Fund aimed to raise funds to support worthy community-based environmental projects around the Asia-Pacific region. Each Banyan Tree resort collected US$1 per room per night from guests – the amount was automatically added to the room bill unless a guest explicitly opted out of the programme, which they were free to do at any time during their stay. The Company matched all donations on a dollar-for-dollar basis. Staff members and a panel of environmental experts would then propose worthy projects, and the panel would decide on the allocation of funds. Projects supported by the Company’s Green Imperative Fund included a “Save the Turtles” campaign in the Maldives, supervised by a team of marine biology experts who were actually employed by the Company; a project to regenerate the coral reefs in the Maldives; projects to preserve the untouched rainforests of Asia, and sponsorship of schoolchildren in Yasothon, Thailand. On one occasion a guest was so impressed with the Company’s environmental work that she donated US$10,000 on the spot to sponsor a sensor for the turtle project.
But Weren’t All These Pro-environment Initiatives Expensive?
While a responsible development may cost more to create, consumers these days are more willing to pay for the privilege of experiencing a resort of real beauty that is in harmony with its surroundings.2
- Mr. Edwin Yeow, Senior Vice President - Marketing, Banyan Tree Hotels & Resorts The Company’s pro-environment policy and initiatives added significantly to the cost of developing and operating its properties (the majority of the costs were incurred during the development of new resorts rather than in their day-to-day operation, however). Design and construction costs for buildings were higher than usual in the industry, because extreme care was taken to use eco-friendly materials and to preserve the trees, water, and marine and animal life at each site. The cost of developing the Laguna Phuket resort, for instance, was US$250 million, and each desalination plant at Banyan Tree Resort Maldives Vabbinfaru and Banyan Tree Resort Seychelles cost US$400,000 (the alternative would have been to pump water from the underground water table, but the risk of long-term disruption to the ecological system was deemed unacceptable). The Company’s management estimated that its environmental and social initiatives cost millions of dollars. There was no single budget line, however, for such initiatives the ethos of corporate social responsibility and concern for the environment was embedded in everything the Company did, from site development to day-to-day resort operations to human resources management to marketing. So it was difficult to put a precise figure on the annual cost.
The Company could have avoided at least some of the expense of being socially and environmentally responsible, because governments in the Third World countries where they operated did not have the resources or the willpower to police regulations. So competing developers knew they could file impressive environmental impact statements, written by expensive consultants, and then get away with not complying with them. Similarly, the
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2 “The Green Imperative” booklet, Banyan Tree Hotels & Resorts [undated].
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Company could have taken cheaper short cuts in the design, construction and operation of its resorts, and most customers would probably never have noticed. Such behaviour, however, would have been inconsistent with the Company’s corporate culture and ethical values, and with the Ho family’s values. “It’s a philosophical thing, a way of living. You have to be convinced that it’s important for the environment and the people. But it’s not only the right thing to do, it’s also long-term enlightened self-interest for the business,” said KP. However, the Company was not driven by a naïve, “Greenpeace-style” environmental philosophy. In the case of the Banyan Tree Resort Phuket, for instance, the land was acquired relatively cheaply because it was considered useless, so that balanced out some of the development costs. “We’re doing this as a business, so the discipline of the marketplace has to be there too.”
Banyan Tree’s Customers
The Company’s resorts appealed to a wide age range of customers, from young honeymooners to retired people. They were not necessarily wealthy people, by Western standards – many were couples who had saved up for a once-in-a-lifetime treat. Guests came mainly from Europe, Japan, North America, Australia, Taiwan and Hong Kong, and about 20 to 30 per cent of customers were repeat visitors.
Marketing and Branding
The Banyan Tree experience could be summed up in two words: “romance” and “intimacy”, according to KP. The emphasis in the Company’s product design and marketing was not on five-star luxury, but on the beautiful tropical locations, the attention to detail in every element of the physical and emotional experience, the Company’s service-oriented culture, and its commitment to caring for the environment. The tagline used in the Company’s marketing communications material was: “Sanctuary for the senses”. The Company had a team of in-house architects and interior designers. This meant it could control every element of the design and construction of its resorts, thus ensuring a consistent style, and also ensuring that the Company’s pro-environment ethos was adhered to, right down to the smallest of details. This attention to detail meant that the staff were virtually “stage managers” of a theatrical experience, and this sense of theatre was another important element of the brand. As KP said, “In a way, if you take the theatre analogy, the set design lays the stage for each guest’s own piece of interactive theatre. We can’t write the script for you: you, as guests, are going to create your own stories. We structure the setting, shaping in some way how you are going to behave. Having created the setting, our staff are then trained in all the basic elements of any five-star service establishment – how to greet guests, how to remember their first names, how to anticipate their needs. But we also try to get our staff to understand that their role is to get the guest to actually act out their romantic fantasy.”3 The Company’s pro-environment ethos was an integral part of KP’s own personal values and the Banyan Tree brand, not just an optional add-on or a nice PR gimmick. “In fact,” he said, “our environment policy is how we build our brand. And the people who share your values are more inclined to use your products or services.” That strong brand allowed the Company to charge a premium. Mr. Edwin Yeow said: “Look at the last two years of the Asian economic crisis. Our
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3 Milligan, A., & Smith, S., eds., (2002), Uncommon Practice, London: Financial Times Prentice Hall, p. 23.
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competitors were dropping rates, but we upped rates because we felt strongly that other parts of the world would recognize the value in the brand.”4 Not all guests were drawn to Banyan Tree resorts because of the Company’s pro-environment ethos, and the Company did not aggressively push its philosophy at guests, preferring a more subtle, low-key approach. “Many people who visit a Banyan Tree property don’t know about it and don’t even care, and you don’t touch every single guest, but you do touch many of them. It’s about creating awareness,” said KP. This was accomplished by, for instance, offering educational talks about marine biology, inviting guests to help with environmental projects, and supporting ecotourism ventures by local businesses. The Company did not put a dollar value on its brand. KP said, “We’ve talked about putting a dollar value on our brand in our accounts, and there have often been suggestions that we should. But we don’t.” The difficulty was with proving that a given environmental initiative led directly to an increase in occupancy rates and profits. As Mr. Edwin Yeow explained, “We can’t quantify how the environmental effort contributes to our success.”5 [Refer to Exhibit 4 for details of awards and accolades that reflected on Banyan Tree’s brand image.]
Financial Results
In the mid-1990s, occupancy at the Company’s resorts stood at about 80 per cent, and as at August 2002, the Company had achieved annual revenues of US$100 million. At that time, the figure was expected to grow at 20 per cent annually.6 The Asian economic crisis of the late 1990s slowed down the development of new properties. The Company, like the tourism industry worldwide, was certainly affected by the 11 September, 2001, terrorist attacks in the US, but no staff retrenchments or pay cuts were made. More recently, the October 2002 bombings in Bali also affected occupancy rates – by January 2003 they had fallen to about 70 per cent. [See Exhibits 2 and 3 for more information about the Company’s financial results and occupancy rates.] Despite the downturn, KP attributed the Company’s continued success to its single-minded commitment to the integrity of its brand. “I think we’ve built a strong brand awareness, and we’ve backed that up with a product that is commensurate with the brand image.”
The Competition
The Company’s biggest and best-known competitor in the category of small luxury resorts was Singapore-based Amanresorts International Pte. Ltd., a privately held company that operated resorts not only in Asia (Cambodia, Indonesia, Thailand and the Philippines) but also around the world (France, French Polynesia, Mexico, Morocco and the US). According to the company’s Website: “Amanresorts owns, manages and markets small luxury resorts worldwide. The company caters to an exclusive segment of the world travel markets, building and managing properties that respond to a unique niche in the resort business. Each resort is unique, but certain elements characterize all Amanresorts properties. These include a beautiful natural setting, outstanding facilities, exceptional service catering to the individual traveller and a small number of rooms to ensure exclusivity.”7 So in some aspects, the image of Amanresorts’ properties was similar to that of Banyan Tree’s properties. However, there were differences: Amanresorts offered five-star luxury and was even 4 Slater, J., “Putting Down Roots”, Far Eastern Economic Review, 25 May, 2000. 5 Blass, A., “Banyan Tree grows a social conscience, but are righteous roots good business?”, BOSS, August 2002. 6 Blass, A. (2002).
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7 Amanresorts International, URL: http://www.amanresorts.com, January 2003.
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more upmarket and expensive that Banyan Tree, and the company did not emphasise a pro- environment policy as an integral part of its brand. Competition also came from other companies that attempted to copy the Banyan Tree style, but as KP commented: “The physical look of a Banyan Tree resort can be copied, but the essence is in our philosophy, and that’s not so easy to copy.” KP also felt that the Company’s in-house interior design and architecture capabilities set it apart from the competition. “When we first started, we were quite differentiated but the marketplace today is far more crowded and there are many smaller hotels offering something similar. However, I think the fact that we have the in-house capability to create the entire experience gives us a decided advantage.”8
Expansion Plans
KP saw the Company’s lack of geographical diversity as a major cause for concern. All of its resorts were in Asia, which meant the Company was vulnerable to political or economic threats that were specific to the region (for instance, the Asian financial crisis, the Bali bombings of October 2002, the threat of nuclear war between India and Pakistan, and the threat of war in the Korean Peninsula). Political instability in Sri Lanka and Nepal had led to the indefinite postponement of plans to develop resorts in those countries. Expansion to other regions of the world would help to insulate the Company somewhat from these risks. The Company had plans to develop a “necklace” of resorts and/or spas worldwide, doubling the number of Banyan Tree resorts by 2008. Plans were underway to develop properties in Lijiang, the People’s Republic of China; Marrakech, Morocco; and Polonnaruwa, Sri Lanka [see Exhibit 1], and KP envisioned future developments in South Africa, Dubai, Europe and Australia. The Company also planned to develop and operate many more Banyan Tree-branded spas in appropriate hotels around the world. “They’re good for our brand image, and they’re much cheaper to set up than complete resorts,” said KP.
Financing
So the Company had big expansion dreams, but how were they going to be financed? One obvious option was an IPO. However, KP had his doubts. If Banyan Tree went public, would there be an opportunity to market the Company as an ethical investment to investors worldwide who shared the Company’s values? Would investors’ demands for short-term profits at the expense of long-term sustainability force the Company to compromise on its ethics, dilute the brand, and threaten the very things that attracted customers in the first place? Where should it list? And if the Company decided not to go public, what other funding sources would be available to finance the planned global expansion? KP faced some difficult questions. According to Lim Kok Boon, manager of an ethical investment fund at Henderson Global Investors in Singapore, “In Asia, ethical investing is still a very new concept. Asian investors are more interested in market share than the ethical behaviour of a company.”9 Some analysts, however, did see a promising future for socially responsible investing (SRI) in Asia. A December 2002 survey of fund managers and analysts in Japan revealed that awareness of SRI was high, and that SRI principles did affect their stock recommendations or investment
8 Milligan, A., & Smith, S., eds., (2002), p. 23.
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9 Blass, A. (2002).
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decisions.10 But with the recession continuing and the threat of war in Iraq affecting the stability of the global economy, KP and his management team had to assess the viability of an IPO.
10 Association for Sustainable & Responsible Investment in Asia, URL: http://www.asria.org/news/press/1043116805, January 2003.
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EXHIBIT 1 BANYAN TREE HOTELS & RESORTS
CURRENT AND PLANNED PROPERTIES (AS AT FEBRUARY 2003)
Current properties Banyan Tree Resort Phuket, Thailand (121 villas/1994) Banyan Tree Resort Maldives Vabbinfaru (48 villas/1995) Banyan Tree Resort Bintan, Indonesia (70 villas/1996) Banyan Tree Resort Seychelles (37 villas/2002) Banyan Tree Bangkok, Thailand (216 suites/2002)
Planned properties
Resorts and/or spas in: Marrakech, Morocco (mid 2005) Lijiang, People’s Republic of China (2006) Chiangmai, Thailand (2006) Pokhara, Nepal (2006) Ubud, Bali (2007)
List of Banyan Tree Spas Banyan Tree Spa Phuket ( 1994 ) Banyan Tree Spa Maldives Vabbinfaru ( 1995 ) Banyan Tree Spa Bintan ( 1995 ) Banyan Tree Spa Bangkok ( 2002 ) Banyan Tree Spa Seychelles ( 2002 ) Banyan Tree Spa Shanghai ( 2003 )
List of Banyan Tree Galleries Banyan Tree Gallery, Phuket (main store) ( 1996 ) Banyan Collection, Phuket ( 1996 ) Banyan Tree Golf Pro Shop, Phuket ( 1996 ) Banyan Tree Gallery, Maldives Vabbinfaru ( 1996 ) Banyan Tree Gallery, Bintan (main store) ( 1996 ) Banyan Tree Gallery, Bintan (golf boutique) ( 1996 ) Banyan Tree Gallery, Bangkok (main store) ( 1996 ) Banyan Kiosk, Bangkok ( 1996 ) Banyan Tree Gallery, Phuket (spa concept store) ( 2000 ) Banyan Tree Gallery, Singapore ( 2000 ) Banyan Tree Gallery, Bintan (spa concept store) ( 2000 ) Banyan Tree Gallery, Bangkok (spa concept store) ( 2001 ) Elements by Banyan Tree, Phuket ( 2002 ) Banyan Tree Gallery, Seychelles (main store) ( 2002 ) Banyan Tree Gallery, Seychelles (spa concept store) ( 2002 ) Banyan Tree Gallery Shanghai (spa concept store) ( 2003 )
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EXHIBIT 2 BANYAN TREE GROUP FINANCIAL RESULTS
Banyan Tree Holdings Ptd Ltd
(in S$'M) Actual Actual 2001 2002
Revenues Total Hotels 160 170 Total Spas 15 20 Total Galleries 8 10
Grand total 183 200
Note *Figures are round up
AVERAGE ROOM RATES (US$) 1996 1997 1998 1999 2000 2001 BT Hotels BTR Phuket 207 149 266 289 336 369
BTR Maldives 200 251 260 262 302 343
BTR Bintan 216 220 171 203 223 255
BANYAN TREE HOTELS
GOP% Performance 1996-2001
55% 46%
51%
34% 33%
47% 50% 52%
51%
0% 10% 20% 30% 40% 50% 60%
1996 1997 1998 1999 2000 2001
BTR Phuket BTR Maldives BTR Bintan Aggregate
Note: GOP denotes Gross Operating Profit. The GOP% is a widely used industry ratio to gauge management’s ability to generate sales and control expenses. As a basis for comparison, in 2001 the average GOP for all hotels in Hong Kong was 36%, and for all hotels in Singapore it was 31%. Source: Data provided by Banyan Tree Hotels & Resorts
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03/173C Banyan Tree Hotels & Resorts
EXHIBIT 3 BANYAN TREE HOTELS & RESORTS
OCCUPANCY RATES
Occupancy Performance 1996-2002
75% 72% 72%
77% 79% 73%
63%
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60%
70%
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90%
100%
1996 1997 1998 1999 2000 2001 2002
B T R P huke t B T R M aldiv e s B T R B intan Aggre gate
BT R Se ych e lle s Op e n e d in 2002
A ct u al Occ% = 53%
Source: Data provided by Banyan Tree Hotels & Resorts
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03/173C Banyan Tree Hotels & Resorts
EXHIBIT 4 BANYAN TREE HOTELS & RESORTS
SELECTED ACCOLADES AND AWARDS 2002 Asia’s Favourite Resorts: Banyan Tree Phuket & Banyan Tree Bintan www.asia-hotels.com Online Survey Best Resort Hotel Asia-Pacific Business Traveller Reader Survey Form Top 10 Great Hotel Restaurants Hotels Magazine Top International Spa American Airline’s Platinum List Top 10 International Spas American Airline’s Platinum List Best Resorts in Asia Customer Hotel Awards & Travel Habits Survey Best Leisure Hotels in Asia Customer Hotel Awards & Travel Habits Survey Best Hotels in Asia Customer Hotel Awards & Travel Habits Survey Grand Award - Corporate Environmental Programme Pacific Asia Travel Association (PATA) Gold Award - International Marketing of Banyan Tree Spa Pacific Asia Travel Association (PATA) Asia’s Best Resort Hotel Award Asiamoney Business Travel Poll Asia’s Best Health Award Spa Award Asiamoney Business Travel Poll Gold List Condé Nast Traveler 2001 Top 10 Asian Resorts Condé Nast Traveler Best Overseas Hotel Spa in The World, Runner-up Condé Nast Traveler
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Top 10 Resorts in Asia Zagat Survey, Top International Hotels, Resorts & Spas Top 20 Spas in World Zagat Survey, Top International Hotels, Resorts & Spas Gold Award - Top Corporate Environmental Programme Pacific Asia Travel Association (PATA) Gold Award - Best International Marketing Pacific Asia Travel Association (PATA) Best Resort Hotel Travel Trade Gazette Travel Awards Asia’s Top 20 Brands Asia Inc. Asia Pacific’s Leading Spa Resort 8th World Travel Award Asia’s Best Resort Hotel Asiamoney Travel Poll Asia’s Best Health Spa Asiamoney Travel Poll Top Hotel Group Innovator Award Travel Weekly East Innovator Award Green Planet Award Kuoni Travel LTD 2000 Top Spa & Retreat Experience Arts & Entertainment Television Networks, USA Top 10 Hotel Spas Travel & Leisure World’s Best Awards Asia’s Top Vacation Resort Asiamoney Travel Poll Best Resort Hotel Travel Trade Gazette Travel Awards 1999 Ecotourism Award Condé Nast Traveler
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Best Resort Hotel in Asia Pacific The Asian Wall Street Journal & CNBC Asia Best Hotel Group Travel Asia Breakthrough Eco-Awards 1998 World’s Best Spa Resort Condé Nast Traveler Highly Commended Award British Airways Tourism For Tomorrow Best Resort Hotel Travel Trade Gazette Travel Awards 1997 Best Resort Hotel Travel Trade Gazette Travel Awards Source: Banyan Tree Hotels & Resorts, URL: www.banyantree.com, January 2003
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