Future Plans

The integrated resort concept of Laguna Phuket has proved a winning
formula since the resort’s inception over two decades ago. The dynamic
development over the last 20 years has created the mature resort which
is evident today.

  Nevertheless we are still confident that in the medium to long term
  that there continues to be opportunity to improve profitability and
  expand the existing facilities, particularly in light of the ongoing
  high demand for Phuket in terms of both hotel and residential
  accommodation and a hotel supply which is not expanding very quickly.

Future Expansion of Hotels in Laguna Phuket 

  The ability within the resort to add rooms supply without additional
  expenditure on infrastructure is a feature of the projects at Laguna
  Phuket. At Banyan Tree Phuket a further 4 Double Pool Villas and 22
  Two-Bedroom Pool Villas which started construction in the first half
  of 2008 are expected to be completed at the beginning of 2010. All of
  the new villas are being sold to the public.

  The design of a seventh resort in Laguna Phuket on the last remaining
  beach site has been finalised. This will be branded Angsana Phuket,
  and it will commence construction in 2010, or once the economic
  environment improves. The Company also has plans to expand the Dusit
  Thani Laguna Phuket by adding over 100 rooms and villas, as well as
  performing a full renovation of the Laguna Phuket golf course. The
  plans for these projects are in the process of being finalised but
  they will not commence until the economic environment is more certain.

  It is also the Company’s policy to have the hotels in Laguna Phuket
  maintain their reputation as being luxury hotels with timely and
  periodic renovations and refurbishments of the hotel rooms.

Future Expansion of Hotels outside Laguna Phuket 

  Further expansion of Banyan Tree Bangkok is currently underway by
  renovating existing office space into additional hotel suites and
  serviced apartments and this will be completed in the first half of
  2009.

Property Sales

  An integrated residential community called Laguna Village commenced
  construction in the first half of 2006. Phase 1 of Laguna Village
  comprises 56 Laguna Residences, 62 Laguna Townhomes and 36 Villas (a
  new product) and by year end construction was completed and these
  products were largely sold out. Phase 2 comprises 20 Residences and 40
  Townhomes and was released at the end of 2007.

  In addition, the Company has further “resort property sales” projects
  released including the Pool Villas at the Dusit Thani Laguna Phuket
  which were fully sold out in the first quarter of 2008. In Banyan Tree
  Phuket, phase 2 of the Double Pool Villas (4 villas) and phase 3 of
  the Two-Bedroom Pool Villas (22 villas) were released for sale in 2007
  and commenced construction in early 2008. Phase 3 of the Banyan Tree
  Double Pool Villas (8 villas) have also been released but are yet to
  start construction. In 2008 the Company released its first apartment
  project in Laguna Phuket in over 15 years. The Lofts at Laguna Village
  is a development of 95 one and two-bedroom loft-style apartments, and
  three-bedroom penthouses which will commence construction in the
  second half of 2009. The Company will continue to identify further
  resort property sales projects given the popularity of this type of
  lifestyle product which also provides a good investment return.

  Laguna Holiday Club

  A number of additional locations within the region will be considered
  in the next few years as the Company believes that with the quality of
  management and staff now in place, the Company has the foundation to
  expand this operation internationally. Given the poor operating
  environment, 2009 will be a year of consolidation and the expansion
  plans for this successful business model will continue when the
  economic conditions improve.

Laguna Tours

  Laguna Tours started as a centralised tour company which is directed
  at capturing the commissions generated by the existing guests when
  they avail themselves of the many activities available on the island.
  This also provides us with the opportunity to exercise some quality
  control over the tours offered to the guests. In 2008 we established
  our own tours by purchasing 6 speed boats, and 4 buses and mini vans
  to provide speed boat tours and city tours. This new business segment
  has been branded as Laguna Tours and has proved to be successful. We
  will look to expand this operation further beyond 2009 as the economic
  environment improves.