2 Nature of the business

2.1 Company History

  Laguna Resorts & Hotels Public Company Limited (“LRH”) was formerly
  named Thai Wah Resorts Development Public Company Limited (“TWRD”)
  which was a subsidiary of Thai Wah Public Company Limited (“TWC”). The
  operations of the TWC Group of Companies involved the manufacturing
  and exporting of commodities as well as investing in hotels, resorts &
  property through TWRD plus other affiliated companies in the group.

  On 5^(th) March 1993 TWRD ameliorated its structure and increased its
  share capital to expand the hotel business, as well as property
  development, by investing in TWC’s subsidiaries where the hotel
  businesses were involved. TWRD’s operational policy was revealed
  whereby the operations of TWRD were separated from TWC and it was
  agreed that hotel resort businesses in Thailand would be handled by
  TWRD and located at Bangtao Bay, Phuket. TWC on the other hand, would
  only run hotel businesses within city areas.

  In November 1993 TWRD was listed on the Stock Exchange of Thailand.
  The significant events between 1992-2006 are listed as follows:

-   In late 1992 Sheraton Grande Laguna Phuket opened with 327 rooms
    including 59 villas.

-   The Allamanda Phase I opened in September 1993 with 94 apartments. *

-   Banyan Tree Phuket opened in May 1995 with 86 villas. An additional
    12 villas were added in 1997.

-   The Canal Village shopping complex opened in 1994 on 10 Rai of land
    with 52 shops.

-   Development of Laguna Homes Chiangrai commenced in 1994 - the real
    estate development at Ban Ging Praow, Tambol Janwa, Chiangrai
    occupies a 901 Rai site. This project was suspended in 1997 due to
    the Asian economic crisis.

-   Opening of Quest Laguna Phuket Adventure in 1994 as a corporate
    outdoor management training program. In 1996, it was expanded to
    include Camp Laguna for children aged 8 – 15.

-   In late 1996, Allamanda Phase II and III opened with a further 141
    apartments. *

-   In 1996 the Laguna Royale project was started with 184 apartments
    but was subsequently suspended due to the regional economic crisis
    in 1997.

-   In late 1997, 12 two-bedroom pool villas at Banyan Tree Phuket were
    opened.

-   On 15^(th) May 1998, TWRD changed its name to Laguna Resorts &
    Hotels Public Company Limited.

-   In December 1999 the agency of Laguna Tours and Travel commenced
    which provides guests of Laguna Phuket access to high quality tours.

-   From 1999 to 2001 the refurbishment program of the rooms and
    facilities of the hotels in Laguna Phuket was performed.

-   There was a significant change in the Company’s shareholding
    structure in the second half of 2000 following Banyan Tree Holdings
    Limited’s (“BTHL”) 30 percent acquisition of the Company’s total
    issued and paid up ordinary shares from certain shareholders. This
    acquisition caused BTHL to undertake a mandatory tender offer for
    all remaining shares in the Company from which BTHL purchased an
    additional 1.2 percent.

-   At the end of September 2001, LRH purchased the 15.5 percent
    minority shareholding in Laguna Grande Limited through its 100
    percent owned subsidiaries.

-   During 2001 the Banyan Tree Phuket constructed 14 new Spa Pool
    villas which were completed and available for use in January 2002.

-   On 8^(th) January 2002 LRH purchased the remaining 49 percent in
    Laguna Banyan Tree Limited, which resulted in the group now having a
    100 percent ownership interest in the operations of the Banyan Tree
    Phuket.

-   On 8^(th) August 2002, the group purchased 27 units in Angsana Spa &
    Resort Bintan, Indonesia with a view to commencing a timeshare
    operation in this resort.

-   On 22^(nd) November 2002 LRH purchased 763 Rai of land directly and
    a controlling interest in a company owning 379 Rai of land, both of
    which are adjacent to Laguna Phuket for future development
    opportunities.

-   During 2003 the Company purchased a further 10 percent of the
    minority shareholding in Laguna Beach Club Limited.

-   During 2004 the Allamanda Vacation Club changed its name to the
    Laguna Holiday Club, and the construction of a new facility of the
    Wedding Chapel was completed in December 2004.

-   On 8^(th) March 2005, the group purchased the Banyan Tree Bangkok,
    Thai Wah Tower I and Thai Wah Tower II via the purchase of the
    equity interest in Thai Wah Plaza Limited, Thai Wah Tower Company
    Limited and Thai Wah Tower (2) Company Limited.

-   In November 2005 the Laguna Holiday Club opened its timeshare
    operation in Angsana Spa & Resort in Bintan, Indonesia.

-   During 2006, Laguna Phuket hotels undertook major renovation works
    as follows:

-   Banyan Tree Phuket completed the conversion of 12 Deluxe Villas into
    Plunge Pool Villas and Lagoon Plunge Pool Villas. In addition,
    construction was substantially completed of 22 ultra luxurious
    Double Pool Villas which will be available for property sale but
    will be managed by the Banyan Tree.

-   Dusit Laguna Resort upgraded 30 rooms to a new room type called the
    Dusit Club Room. In addition, construction commenced on 28 Dusit
    Laguna Villas which will be available for sale to the public and
    will be managed by the Dusit.

-   Laguna Beach Resort renovated the Resort’s entire North Wing
    comprising 172 rooms.

-   Sheraton Grande Laguna Phuket completed a multi-million dollar
    refurbishment of all resort rooms. In addition, a brand new Grande
    Room wing opened with 45 rooms, all with private balconies and views
    of the lagoon.

-   Banyan Tree Bangkok re-launched its suites and restaurants after
    four months of major refurbishment.

-   In April 2006, Banyan Tree Lijiang opened offering five star
    amenities, including extensive meeting facilities, tennis courts,
    library and games room, as well as the Bai Yun Chinese restaurant.

-   In October 2006, Laguna Holiday Club Phuket Resort was completed and
    opened. Laguna Holiday Club also purchased inventory in Cha-Am and
    Chiang Mai as part of its ongoing expansion.

  * The Allamanda Laguna Phuket is not owned or managed by LRH as these
  condominiums have been sold through the groups property sales
  division.

2.2 Type of businesses and income structure

Hotels

  Within Laguna Phuket, there are 4 hotels which LRH either owns or has
  an ownership stake:

-   Banyan Tree Phuket – 148 exclusive villas, 32 with Jacuzzis and 116
    of which their own swimming pools. The resort is managed by Banyan
    Tree Hotels & Resorts Pte. Ltd.

-   Dusit Laguna Resort – 226 rooms and suites, managed by Dusit Hotels
    and Resorts Company Limited

-   Sheraton Grande Laguna Phuket – 415 rooms, suites and villa’s
    managed by Sheraton Overseas Management Corporation.

-   Laguna Beach Resort – 254 rooms and suites and is owner operated.

In addition LRH owns hotels and resorts outside Phuket as follows:

-   Banyan Tree Bangkok - 216 suites and is managed by Banyan Tree
    Hotels & Resorts Pte. Ltd. which was purchased in March 2005. The
    hotel is located in Bangkok.

-   Banyan Tree Lijiang – 55 villas and is managed by Banyan Tree Hotels
    & Resorts Pte. Ltd. which commenced operating in April 2006. The
    resort is located at Yunnan Province, People’s Republic of China.
    Note: effective 1^(st) January 2007, LRH divested part of its
    ownership interest in this project to 49.04 percent.

Property

-   The Island Villas are a small condominium project attached to the
    Sheraton Grande Laguna Phuket. The units have been sold to the
    public. The individual owners may rent their units to the Group
    which in turn contracts Sheraton Overseas Management Corporation to
    manage the units, and in doing so earn a return on their investment.

-   The Allamanda Laguna Phuket is a large condominium project. It is
    not attached to any other hotel. The units have been sold to the
    public and the individual owners may earn a return on their
    investment by contracting Banyan Tree Hotels & Resorts Pte. Ltd. to
    manage their unit for them. As the condominiums have been sold, the
    Allamanda Laguna Phuket is neither owned nor managed by LRH.

-   Laguna Homes is a housing plot development. There are 54 land plots
    located around the golf course. The land plots have been fully sold
    to the public. Twenty additional land plots were reserved for the
    sale of Laguna Residences, a “house and land” package, that was
    introduced in 2001 and was sold out in 2003. A new development,
    Laguna Townhomes, was introduced in the last quarter of 2002 and was
    sold out in 2004. Further developments of Laguna Residences and
    Laguna Townhomes continue to be constructed and sold on land both
    within Laguna Phuket and land contiguous to Laguna Phuket. The
    latest development released for sale is phase I of Laguna Village
    which will comprise of 36 Laguna Village Villas, 56 Laguna Townhomes
    and 49 Laguna Residences.

-   Banyan Tree Two Bedroom Pool Villas are a luxury development project
    attached to the Banyan Tree Phuket. All of the 12 villas in Phase I
    have been sold to the public. Phase 2 comprising a further 14 villas
    were completed in 2005 and have also been sold to the public. The
    individual owners may earn a return on their investment by
    contracting Banyan Tree Hotels & Resorts Pte. Ltd. to manage their
    villa for them.

-   Banyan Tree Double Pool Villas are a luxury development of 22 villas
    attached to the Banyan Tree Phuket. Eight of these villas were sold
    to the public during 2006. Construction commenced on 28 Dusit Laguna
    Villas which are available for sale to the public at the Dusit
    Laguna Resort. In both of these projects the individual owners may
    earn a return on their investment by contracting Banyan Tree Hotels
    & Resorts Pte. Ltd. and Dusit Hotels and Resorts Company Limited
    respectively to manage their villas for them.

-   The Laguna Holiday Club sells memberships that entitle participants
    to annual vacations at the participating member resorts of Laguna
    Holiday Club Phuket Resort (a member-dedicated 79 suite resort which
    was completed in October 2006), Allamanda Laguna Phuket, Sheraton
    Grande Laguna Phuket, Sheraton Private Pool Residences, Angsana
    Resort & Spa Bintan, Springfield Cha-am and Chiang Mai Twin Peaks.

-   Located in Chiangrai is another housing plot development called
    Laguna Homes Chiangrai. This project has been suspended.

Others

  In addition to the above there are the following facilities in Laguna
  Phuket:

-   18-hole golf course

-   An outdoor management training program

-   Canal Village shopping complex

-   Banyan Tree Gallery retail outlets

-   The Wedding Chapel

  LRH also generates income from office rental in Bangkok (purchased as
  part of the acquisition of Thai Wah Plaza Limited in March 2005).

  Income Structure

  The percentage of income generated by each individual line of business
  is detailed as follows:

+-------------------+--------+-----+--------+------+--------+-----+
|                   | 2006   | %   | 2005   | %    | 2004   | %   |
|                   |        |     |        |      |        |     |
|                   | Baht   |     | Baht   |      | Baht   |     |
|                   | 000’s  |     | 000’s  |      | 000’s  |     |
+-------------------+--------+-----+--------+------+--------+-----+
|                   |        |     |        |      |        |     |
+-------------------+--------+-----+--------+------+--------+-----+
| Hotel operations  | 3,5    | 5   | 2,3    | 71.9 | 2,8    | 7   |
|                   | 89,807 | 9.2 | 05,533 |      | 03,597 | 0.8 |
+-------------------+--------+-----+--------+------+--------+-----+
|                   |        |     |        |      |        |     |
+-------------------+--------+-----+--------+------+--------+-----+
| Property sales    | 2,3    | 3   | 7      | 23.4 | 1,0    | 2   |
|                   | 27,818 | 8.4 | 50,134 |      | 51,814 | 6.6 |
+-------------------+--------+-----+--------+------+--------+-----+
|                   |        |     |        |      |        |     |
+-------------------+--------+-----+--------+------+--------+-----+
| Office rental     | 80,764 | 1.3 | 1      | 3.2  | -      | -   |
|                   |        |     | 00,867 |      |        |     |
+-------------------+--------+-----+--------+------+--------+-----+
|                   |        |     |        |      |        |     |
+-------------------+--------+-----+--------+------+--------+-----+
| Interest and      | 69,298 | 1.1 | 49,345 | 1.5  | 1      | 2.6 |
| other income      |        |     |        |      | 04,041 |     |
+-------------------+--------+-----+--------+------+--------+-----+
|                   |        |     |        |      |        |     |
+-------------------+--------+-----+--------+------+--------+-----+
| Total revenue     | 6,0    | 10  | 3,2    | 1    | 3,9    | 10  |
|                   | 67,687 | 0.0 | 05,879 | 00.0 | 59,452 | 0.0 |
+-------------------+--------+-----+--------+------+--------+-----+

  The most significant line of business of the group is the hotel
  operations for which further details are provided below on an
  operation by operation basis. Note 29 to the financial statements of
  the Company for the year ended 31^(st) December 2006 (note 26 for the
  year ended 31^(st) December 2005) discloses the operating results of
  the hotel operations and property sales in accordance with accounting
  standards and principles.

Banyan Tree Phuket

  --------------------- ---------------- ---------------- ---------------
                        2006             2005             2004

  Available Rooms –     131              118              120
  average                                                 

  Occupancy %           61%              53%              70%

  Average Rate (Baht)   18,587           14,121           18,368
  --------------------- ---------------- ---------------- ---------------

+--------------------+---------+-----+---------+-----+---------+----+
|                    | 2006    |     | 2005    |     | 2004    |    |
+--------------------+---------+-----+---------+-----+---------+----+
|                    | Baht    | %   | Baht    | %   | Baht    | %  |
|                    | 000’s   |     | 000’s   |     | 000’s   |    |
+--------------------+---------+-----+---------+-----+---------+----+
| Room Revenue       | 541,227 | 6   | 323,777 | 6   | 568,651 | 72 |
|                    |         | 8.7 |         | 7.6 |         | .5 |
+--------------------+---------+-----+---------+-----+---------+----+
| F&B Revenue        | 218,519 | 2   | 136,640 | 2   | 189,591 | 24 |
|                    |         | 7.8 |         | 8.5 |         | .2 |
+--------------------+---------+-----+---------+-----+---------+----+
| Other Revenue      | 27,723  | 3.5 | 18,272  | 3.9 | 25,836  | 3  |
|                    |         |     |         |     |         | .3 |
+--------------------+---------+-----+---------+-----+---------+----+
| Total              | 787,469 | 10  | 478,689 | 10  | 784,078 | 1  |
|                    |         | 0.0 |         | 0.0 |         | 00 |
|                    |         |     |         |     |         | .0 |
+--------------------+---------+-----+---------+-----+---------+----+

The Banyan Tree Phuket hotel is owned by Laguna Banyan Tree Limited in
which Laguna Resorts & Hotels Public Company Limited has a 100 percent
ownership interest. The 2006 revenue, while higher than 2005, was below
expectations due to the delays in completion of the new luxury "Double
Pool Villas" and construction and renovation disruption affecting the
resort's ability to sell existing product. The low revenue in 2005 was
due to the Tsunami in the Indian Ocean on 26^(th) December 2004 which
had an adverse impact on Phuket's tourism in that year. The hotel is
located at 33 Moo 4 Srisoonthorn Road, Cherngtalay District, Amphur
Talang, Phuket Province. The management of the Banyan Tree Phuket hotel
is contracted out to Banyan Tree Hotels and Resorts Pte. Ltd.

 

Dusit Laguna Resort

  --------------------- ----------------- ---------------- ----------------
                        2006              2005             2004

  Available Rooms –     226               224              224
  average                                                  

  Occupancy %           72%               55%              78%

  Average Rate (Baht)   4,458             3,303            3,883
  --------------------- ----------------- ---------------- ----------------

+--------------------+----------+----+---------+----+---------+----+
|                    | 2006     |    | 2005    |    | 2004    |    |
+--------------------+----------+----+---------+----+---------+----+
|                    | Baht     | %  | Baht    | %  | Baht    | %  |
|                    | 000’s    |    | 000’s   |    | 000’s   |    |
+--------------------+----------+----+---------+----+---------+----+
| Room Revenue       | 265,252  | 61 | 147,384 | 58 | 247,505 | 59 |
|                    |          | .0 |         | .4 |         | .5 |
+--------------------+----------+----+---------+----+---------+----+
| F&B Revenue        | 150,825  | 34 | 91,466  | 36 | 148,647 | 35 |
|                    |          | .7 |         | .2 |         | .7 |
+--------------------+----------+----+---------+----+---------+----+
| Other Revenue      | 18,842   | 4  | 13,584  | 5  | 19,828  | 4  |
|                    |          | .3 |         | .4 |         | .8 |
+--------------------+----------+----+---------+----+---------+----+
| Total              | 434,919  | 1  | 252,434 | 1  | 415,980 | 1  |
|                    |          | 00 |         | 00 |         | 00 |
|                    |          | .0 |         | .0 |         | .0 |
+--------------------+----------+----+---------+----+---------+----+

The Dusit Laguna Resort is directly owned by Laguna Resorts & Hotels
Public Company Limited. The resort achieved the highest occupancy among
the Laguna Phuket resorts in 2006 as it was less affected by
construction disruptions during the year (thirty existing hotel rooms
were renovated to a new "Dusit Club room” product during the year). The
low revenue in 2005 was due to the Tsunami in the Indian Ocean on
26^(th) December 2004 which had an adverse impact on Phuket's tourism in
that year. The hotel is located at 390 Srisoonthorn Road, Cherngtalay
District, Amphur Talang, Phuket Province. The management of the Dusit
Laguna Resort is contracted out to Dusit Hotels and Resorts Company
Limited.

Laguna Beach Resort

  --------------------- ----------------- ---------------- ----------------
                        2006              2005             2004

  Available Rooms –     252               253              254
  average                                                  

  Occupancy %           60%               50%              81%

  Average Rate (Baht)   3,972             3,330            3,710
  --------------------- ----------------- ---------------- ----------------

+--------------------+----------+----+---------+----+---------+----+
|                    | 2006     |    | 2005    |    | 2004    |    |
+--------------------+----------+----+---------+----+---------+----+
|                    | Baht     | %  | Baht    | %  | Baht    | %  |
|                    | 000’s    |    | 000’s   |    | 000’s   |    |
+--------------------+----------+----+---------+----+---------+----+
| Room Revenue       | 217,998  | 61 | 154,453 | 57 | 279,554 | 61 |
|                    |          | .1 |         | .7 |         | .4 |
+--------------------+----------+----+---------+----+---------+----+
| F&B Revenue        | 120,252  | 33 | 94,697  | 35 | 149,560 | 32 |
|                    |          | .7 |         | .4 |         | .9 |
+--------------------+----------+----+---------+----+---------+----+
| Other Revenue      | 18,658   | 5  | 18,651  | 6  | 25,780  | 5  |
|                    |          | .2 |         | .9 |         | .7 |
+--------------------+----------+----+---------+----+---------+----+
| Total              | 356,908  | 1  | 267,801 | 1  | 454,894 | 1  |
|                    |          | 00 |         | 00 |         | 00 |
|                    |          | .0 |         | .0 |         | .0 |
+--------------------+----------+----+---------+----+---------+----+

The Laguna Beach Resort is owned by Laguna Beach Club Limited in which
Laguna Resorts & Hotels Public Company Limited has a 50 percent
effective ownership interest. The hotel's revenue, while up on 2005, was
below 2004 levels mainly due to the refurbishment of the north wing
(comprising 172 rooms) during the second and third quarters coupled with
a lack of direct flights from key low season markets such as Hong Kong
and Korea. The low revenue in 2005 was due to the Tsunami in the Indian
Ocean on 26^(th) December 2004 which had an adverse impact on Phuket's
tourism in that year. The hotel is located at 323 Moo 2 Srisoonthorn
Road, Cherngtalay District, Amphur Talang, Phuket Province. The
management of the Laguna Beach Resort is jointly performed by the
management of Laguna Resorts & Hotels Public Company Limited and its
joint venture partner, Pacific Resort (Thailand) Company Limited.

 

Sheraton Grande Laguna Phuket 

  --------------------- ----------------- ---------------- ----------------
                        2006              2005             2004

  Available Rooms –     323               289              289
  average                                                  

  Occupancy %           59%               46%              75%

  Average Rate (Baht)   5,113             4,278            5,164
  --------------------- ----------------- ---------------- ----------------

+--------------------+----------+----+---------+----+---------+----+
|                    | 2006     |    | 2005    |    | 2004    |    |
+--------------------+----------+----+---------+----+---------+----+
|                    | Baht     | %  | Baht    | %  | Baht    | %  |
|                    | 000’s    |    | 000’s   |    | 000’s   |    |
+--------------------+----------+----+---------+----+---------+----+
| Room Revenue       | 355,431  | 51 | 209,355 | 48 | 410,079 | 56 |
|                    |          | .7 |         | .6 |         | .4 |
+--------------------+----------+----+---------+----+---------+----+
| F&B Revenue        | 281,662  | 41 | 179,206 | 41 | 267,721 | 36 |
|                    |          | .0 |         | .7 |         | .8 |
+--------------------+----------+----+---------+----+---------+----+
| Other Revenue      | 50,181   | 7  | 41,617  | 9  | 49,475  | 6  |
|                    |          | .3 |         | .7 |         | .8 |
+--------------------+----------+----+---------+----+---------+----+
| Total              | 687,274  | 1  | 430,178 | 1  | 727,275 | 1  |
|                    |          | 00 |         | 00 |         | 00 |
|                    |          | .0 |         | .0 |         | .0 |
+--------------------+----------+----+---------+----+---------+----+

The Sheraton Grande Laguna Phuket is owned by Bangtao Grande Limited in
which Laguna Resorts & Hotels Public Company Limited has a 100 percent
ownership interest. The hotel's revenue, while up on 2005, was below
2004 levels mainly due to the refurbishment of its rooms throughout the
resort during the year coupled with a lack of direct flights from key
low season markets from the local region. A further 45 rooms were added
to the resort during the year which became operational from the second
quarter onwards. The low revenue in 2005 was due to the Tsunami in the
Indian Ocean on 26^(th) December 2004 which had an adverse impact on
Phuket's tourism in that year. The hotel is located at 10 Moo 4
Srisoonthorn Road, Cherngtalay District, Amphur Talang, Phuket Province.
The management of the Sheraton Grande Laguna Phuket is contracted out to
Sheraton Overseas Management Corporation.

Banyan Tree Bangkok

  --------------------- ----------------- ---------------- ----------------
                        2006              2005             2004

  Available Rooms –     202               216              -
  average                                                  

  Occupancy %           77%               73%              -

  Average Rate (Baht)   5,023             4,811            -
  --------------------- ----------------- ---------------- ----------------

+--------------------+----------+----+---------+----+---------+----+
|                    | 2006     |    | 2005    |    | 2004    |    |
+--------------------+----------+----+---------+----+---------+----+
|                    | Baht     | %  | Baht    | %  | Baht    | %  |
|                    | 000’s    |    | 000’s   |    | 000’s   |    |
+--------------------+----------+----+---------+----+---------+----+
| Room Revenue       | 283,567  | 40 | 231,454 | 44 | -       | -  |
|                    |          | .1 |         | .8 |         |    |
+--------------------+----------+----+---------+----+---------+----+
| F&B Revenue        | 392,276  | 55 | 260,240 | 50 | -       | -  |
|                    |          | .5 |         | .4 |         |    |
+--------------------+----------+----+---------+----+---------+----+
| Other Revenue      | 31,178   | 4  | 24,819  | 4  | -       | -  |
|                    |          | .4 |         | .8 |         |    |
+--------------------+----------+----+---------+----+---------+----+
| Total              | 707,021  | 1  | 516,513 | 1  | -       | -  |
|                    |          | 00 |         | 00 |         |    |
|                    |          | .0 |         | .0 |         |    |
+--------------------+----------+----+---------+----+---------+----+

The Banyan Tree Bangkok is owned by Thai Wah Plaza Limited in which
Laguna Resorts & Hotels Public Company Limited has had a 100 percent
ownership interest since March 2005. Revenue for 2006 was above the
prior year due to a full year of results being recorded (2005: 10-month
results recorded, after the acquisition) despite a lower fourth quarter
performance which was impacted by the closure of several floors due to
construction of a new ballroom, spa facility and conversion of office
floors to hotel suites. The hotel is located at 21/100 South Sathorn
Road, Tungmahamek, Sathorn, Bangkok. The management of the Banyan Tree
Bangkok is contracted out to Banyan Tree Hotels and Resorts Pte. Ltd.

 

Banyan Tree Lijiang

  --------------------- ---------------- ---------------- ---------------
                        2006             2005             2004

  Available Rooms –     37               -                -
  average                                                 

  Occupancy %           50%              -                -

  Average Rate (Baht)   10,636           -                -
  --------------------- ---------------- ---------------- ---------------

+--------------------+---------+-----+---------+-----+---------+----+
|                    | 2006    |     | 2005    |     | 2004    |    |
+--------------------+---------+-----+---------+-----+---------+----+
|                    | Baht    | %   | Baht    | %   | Baht    | %  |
|                    | 000’s   |     | 000’s   |     | 000’s   |    |
+--------------------+---------+-----+---------+-----+---------+----+
| Room Revenue       | 53,232  | 6   | -       | -   | -       | -  |
|                    |         | 2.4 |         |     |         |    |
+--------------------+---------+-----+---------+-----+---------+----+
| F&B Revenue        | 15,573  | 1   | -       | -   | -       | -  |
|                    |         | 8.3 |         |     |         |    |
+--------------------+---------+-----+---------+-----+---------+----+
| Other Revenue      | 16,448  | 1   | -       | -   | -       | -  |
|                    |         | 9.3 |         |     |         |    |
+--------------------+---------+-----+---------+-----+---------+----+
| Total              | 85,253  | 10  | -       | -   | -       | -  |
|                    |         | 0.0 |         |     |         |    |
+--------------------+---------+-----+---------+-----+---------+----+

The Banyan Tree Lijiang hotel is owned by Lijiang Banyan Tree Hotel Co.,
Ltd. in which Laguna Resorts & Hotels Public Company Limited has a 70
percent effective ownership interest (Note: effective 1^(st) January
2007, LRH divested part of its ownership interest in this project down
to 49.04%). The hotel commenced operations in April 2006. The resort is
located at Yuerong Road, Shuhe Gucheng District Lijiang 674100 Yunnan,
People’s Republic of China. The management of the Banyan Tree Lijiang is
contracted out to Banyan Tree Hotels and Resorts Pte. Ltd.

Laguna Phuket Golf Club

+--------------------+----------+----+---------+----+---------+----+
|                    | 2006     |    | 2005    |    | 2004    |    |
+--------------------+----------+----+---------+----+---------+----+
|                    | Baht     | %  | Baht    | %  | Baht    | %  |
|                    | 000’s    |    | 000’s   |    | 000’s   |    |
+--------------------+----------+----+---------+----+---------+----+
| Green Fees         | 37,825   | 55 | 22,611  | 52 | 36,263  | 61 |
|                    |          | .7 |         | .6 |         | .8 |
+--------------------+----------+----+---------+----+---------+----+
| Retail Revenue     | 11,556   | 17 | 7,330   | 17 | 8,868   | 15 |
|                    |          | .0 |         | .0 |         | .1 |
+--------------------+----------+----+---------+----+---------+----+
| Other Revenue      | 18,576   | 27 | 13,085  | 30 | 13,569  | 23 |
|                    |          | .3 |         | .4 |         | .1 |
+--------------------+----------+----+---------+----+---------+----+
| Total              | 67,957   | 1  | 43,026  | 1  | 58,700  | 1  |
|                    |          | 00 |         | 00 |         | 00 |
|                    |          | .0 |         | .0 |         | .0 |
+--------------------+----------+----+---------+----+---------+----+

  The Laguna Phuket Golf Club is owned by Laguna Grande Limited in which
  Laguna Resorts & Hotels Public Company Limited has a 100 percent
  ownership interest. The increase in revenue in 2006 was due to the
  higher occupancies of the Laguna Phuket hotels. The low revenue in
  2005 was due to the Tsunami in the Indian Ocean on 26^(th) December
  2004 which had an adverse impact on Phuket's tourism in that year. The
  Laguna Phuket Golf Club is located at 34 Moo 4 Srisoonthorn Road,
  Cherngtalay District, Amphur Talang, Phuket Province. The management
  of the Laguna Phuket Golf Club is contracted out to Banyan Tree Hotels
  & Resorts Pte. Ltd.

[]

Remark: * On 27^(th) December 2006, the Company’s Board approved the
divestment of 20.96 percent of equity interest of Laguna Banyan Tree
Limited, a wholly-owned subsidiary, in Lijiang Banyan Tree Hotel Co.,
Ltd. to Banyan Tree Holdings Limited. Effective 1^(st) January 2007, the
equity interest ratio of Laguna Banyan Tree Limited in Lijiang Banyan
Tree Hotel Co., Ltd. in which the Company indirectly held decreased from
70.00 percent to 49.04 percent.

ABBREVIATIONS

AVCI = PT. AVC Indonesia

BGL = Bangtao Grande Limited

BTD = Bangtao Development Limited

BTG(S) = Banyan Tree Gallery (Singapore) Pte Ltd

BTG(T) = Banyan Tree Gallery (Thailand) Limited

BT1 = Bangtao (1) Limited

BT2 = Bangtao (2) Limited

BT3 = Bangtao (3) Limited

BT4 = Bangtao (4) Limited

CGL = Cheer Golden Limited

HHBR = Hua Hin Beach Resort Company Limited

LBC = Laguna Beach Club Limited

LBTL = Laguna Banyan Tree Limited

LBTH = Lijiang Banyan Tree Hotel Co., Ltd

LCL = Laguna Central Limited

LEL = Laguna Excursions Limited

LGL = Laguna Grande Limited

LHC = Laguna Holiday Club Limited

LRH = Laguna Resorts & Hotels Public Company Limited

LSC = Laguna Service Company Limited

L1 = Laguna (1) Limited

L3 = Laguna (3) Limited

MCP = Mae Chan Property Company Limited

OPS = Ownrep Project Services Pte Ltd

PKRD = Phuket Resort Development Limited

PSD = Pai Samart Development Company Limited

TLDC = Talang Development Company Limited

TRL = Tropical Resorts Limited

TRLI = TRL Investments Ltd.

TWC = Thai Wah Public Company Limited

TWDC = Twin Waters Development Company Limited

TWRH = TWR-Holdings Limited

TWPL = Thai Wah Plaza Limited

TWT = Thai Wah Tower Company Limited

TWT2 = Thai Wah Tower (2) Company Limited