Banyan Tree launches serviced apartment brand
LUXURY hospitality firm Banyan Tree Hotels and Resorts has launched a new brand of serviced apartments, in its first foray into the extended-stay segment. The firm will develop five properties under the Cassia brand - in Phuket in Thailand, Bintan in Indonesia, Beruwala in Sri Lanka, the Gold Coast in Australia, and Lijiang in China - in conjunction with Banyan Tree Group's 20th anniversary.
It will offer one- and two-bedroom units - ranging from 35 sq m to 55 sq m - costing about $250,000 on average, said Banyan Tree Group executive chairman Ho Kwon Ping yesterday.
Mr Ho said the brand was aimed at a growing pool of investors from the middle class "that can decide to get a second home on a whim".
"Second homes used to be the domain of the ultra-rich, during the last 50 years or so. Now, they are more affordable for normal people, especially if they can get income from it and sell it later on," he added.
Each property will have an average development cost of $50 million, and will have about 200 fully furnished units managed by Banyan Tree.
Owners who buy the units for investment have the option of staying there for 30 days in a year, but with blackout periods during which the units will be leased out, said a Banyan Tree spokesman. Those preferring to hold the unit as a holiday home will have it for up to 90 days of complimentary use, with no blackout periods.
Gross rental yields are expected to be 6 to 7 per cent. But unlike most serviced apartments, there will be no minimum stay period.
The property in Bintan is 45 per cent sold. About 70 per cent of the Phuket project has been snapped up, and will be the first to open next year. Unit rates have not been fixed yet, said Banyan Tree.
Seven more projects are in the pipeline, it added: in Brisbane, New York, Seychelles, Chiang Mai, Bangkok and Lang Co, Vietnam. It also has plans in place to grow its portfolio to 66 hotels and resorts and 117 spas in 33 countries in the next three years.
"The rest of the hospitality sector has seen a lot of excitement and innovation, and even cheaper, smaller, three-star hotels can be hip. But serviced apartments are an under-innovated sector," said Mr Ho. "So we are signalling our entry into this sector, and we intend to shake it up."
Banyan Tree Lijiang Pioneers Corporate Social Responsibility In Rural ProvinceM
Singapore, As the first international resort to operate in Lijiang, Banyan Tree Hotels & Resorts is faced with unique opportunities to promote and integrate sustainable practices not just in its property but also encompassing the region’s thriving tourism industry, and its impact on impoverished local communities.
With about 3.5 million visitors annually, where the majority of visitors are budget or domestic travellers, Lijiang as a UNESCO World Heritage Site is poised to draw a fresh international audience of upmarket and discerning travellers and businessmen through Banyan Tree Lijiang.
Corporate Social Responsibility (CSR) is a key brand value of Banyan Tree to achieve positive and sustainable outcomes for business, environment and community issues. Having integrated CSR into both the physical and communal environment in countries where the resorts are located, Banyan Tree continues to reflect its rigorous social development involvement through Banyan Tree Lijiang, the group’s latest resort to open in China.
Setting exemplary standards in construction and operations, Banyan Tree Lijiang is a unique attempt to restate the local Naxi style in a contemporary, yet sensitive, manner. Working closely with Urban Planning and Construction by-laws, the exterior of the villas were constructed with local materials, such as exotic pink stone and grey Naxi bricks that proved weather-resistant and energy efficient. All-natural materials including pine, teak and traditional red clay roof tiles sourced from local kilns lend authenticity to the recreation of a Naxi village in a resort setting.
Banyan Tree Lijiang has also implemented human resource policies to reinforce its cultural and social commitments. Of the more than 200 full-time associates that are employed by Banyan Tree Lijiang, 67 per cent are local residents from Yunnan, where 28 per cent are from the local minority communities. Associates enjoy worker-welfare programmes, such as English improvement courses, dedicated transportation, and suitable accommodation options.
In nearby villages, Banyan Tree has implemented community projects, providing infrastructure, including electrical wiring and water piping to families of Geino Village and Xiya Village, students at the Lanbao Primary School, residents of the Tibet Hospital of Diqing Prefecture, and monks at Da Bao Si Monastery. Another beneficiary is Lijiang Ethnic Orphanage, which received upgraded facilities such as beds, water tanks, solar water heaters and safety features, in addition to 500 books donated by Banyan Tree guests.
Banyan Tree Lijiang was also instrumental in a charity fundraising event, the Walk For Chalk Shangri-La 2006, a project organised by the Chi Heng Foundation in support of AIDS orphans in rural China. Banyan Tree’s sponsorship of accommodation and meal package valued at US$35,000 enabled the Chi Heng Foundation to raise over US$250,000 for the children’s schooling and welfare needs.
To encourage more qualified tourism professionals from the local communities, Banyan Tree has launched a new scholarship programme at the Lijiang Cultural & Tourism University. Five scholarships will be awarded to promising students from Lijiang annually.