BHMA has recently been pursuing a strategy of rapid expansion throughout Southeast Asia, and the recent release of key operating data for 2017 bears out the continued success of this approach. Most notably, the company saw revenue up 17% compared to 2016, which could largely be attributed to an increase in the size of the portfolio.
BHMA operated 16 properties in 2017, up from 12 in the previous year. These can be subdivided by brand: X2 Resorts – 9 properties (up from 8); X2 Vibe Hotels – 4 (up from 2), and Away Resorts – 4 (up from 2). The additional properties gave BHMA a boost in terms of management fees which made a significant contribution to revenue growth.
The operating figures for the 16 properties under BHMA management showed a notable rise in occupancy across the board, up by 45.9% on the previous year; the biggest increase came in the X2 Vibe category which enjoyed an increase of 83.8% in the latest reports, indicating a very positive customer response to this particular new brand.
For each of the three brands, an increase was seen in RevPAR for 2017 over the 2016 numbers, and ADR rose substantially for the X2 and Away brands. A slight decrease in ADR for X2 Vibe was offset in terms of RevPAR by the substantial rise in occupancy. More importantly, gross operating profit margins rose markedly overall by a healthy 16.5%, and GOPPAR increased in all brand categories.
CEO Anthony McDonald stated that he was very pleased to announce these consolidated results for BHMA, noting that the achievements were testament to the effectiveness of the strategy employed and the dedication of staff throughout the organization. “It is absolutely critical that expansion is made in the right markets with the right targets, and the latest figures indicate that we have been able to do precisely that,” he explained.
Looking ahead to 2018, BHMA is set to consolidate its current growth with further portfolio additions in Q3, including the X2 Vibe Hoi An Residence and the X2 Vibe Viet Tri Hotel, both in Vietnam, and the X2 Oceanphere Residence in Pattaya. Furthermore, a new office will be opening in Jakarta to meet the rising demand for the company’s services among investors across Asia.