Banyan Tree Hotels and Resorts has appointed Union Bank of Switzerland (UBS) to manage its Singapore initial public offering early next year.

Banking insiders say the company, which manages resorts in Indonesia, Thailand and the Maldives, could raise as much as S$350m when it is listed. The timing and size of the offer have not yet been finalised.

The company had planned to spend a large percentage of the profits from its stock market listing on developing new resorts in Sri Lanka, under the Banyan Tree brand. It had already bought a majority stake in one hotel there and was planning to develop two new luxury resorts in the region. These plans have now been put on hold, following Sri Lanka’s current political situation.

Speaking at a conference on global branding yesterday, chairman of Banyan Tree, Ho Kwon Ping, said the company would be rethinking its development plans in order to stay one step ahead of its competitors. He also announced plans to develop two new resorts in Mexico and Marakesh.

“If we are to get into the American and European markets, our strategy is not to do it by setting up a Banyan Tree in France or England because the cost structures are just not going to work. So we go to the backyards of these places, we go to places which are two to three hours’ flying time from major metropolitan centres in Europe and in the US.”

The company has adopted a similar strategy with Banyan Tree Phuket, which caters to the Hong Kong and Singapore market.

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