Banyan Tree Announces Final Closing of The China Fund at $214US Mil

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. January 20, 2011

January 19, 2011 - The Board of Banyan Tree Holdings Limited is pleased to announce that it has successfully closed its first Renminbi denominated private equity fund in China, the Banyan Tree China Hospitality Fund, on January 16, 2011 with total capital commitments of RMB 1.07 billion (USD $214 million).

Tianjin Banyan Tree Capital Investment Management Co., Ltd, a wholly-owned subsidiary of the Company established in the PRC, is the General Partner of the China Fund.

The China Fund
The China Fund is a private equity investment fund and has been constituted in the form of a limited liability partnership under the laws of the People's Republic of China (PRC). It will primarily make equity investments in onshore companies undertaking hospitality projects in the PRC that will be operated under the Company's brands 'Banyan Tree' and 'Angsana'.

The China Fund has made no investments to date but is well positioned to do so in 2011 with an identified pipeline of investment opportunities.

Executive Chairman of Banyan Tree Holdings, Mr. Ho Kwon Ping says: “The China Fund will further enable us to establish a portfolio of resorts and hotels in the fast developing economy of China, in line with the expansion of our plans for Banyan Tree and Angsana-branded properties into this market. With the five resorts that we currently operate and manage in the country and another 18 in the pipeline, we will be undertaking hospitality projects in the PRC that will be operated under the Company's brands of Banyan Tree and Angsana. Banyan Tree Holdings will invest an amount equivalent to at least 5% of the total capital commitments of the Final Closing.”

About Banyan Tree Holdings Limited
Banyan Tree Holdings Limited (“Banyan Tree” or the “Group”) is a leading manager and developer of premium resorts, hotels and spas in the Asia Pacific, close to 30 resorts and hotels, over 60 spas and 80 galleries; as well as three golf courses. The Group manages and/or has ownership interests in niche resorts and hotels. The resorts each typically has between 50 and 100 rooms and commands room rates at the high end of each property's particular market.

The Group's primary business is the management, development and ownership of resorts and hotels. This is centered around two award-winning brands: Banyan Tree and Angsana. Banyan Tree also operates the leading integrated resort in Thailand - Laguna Phuket, through the Group's subsidiary, Laguna Resorts & Hotels Public Company Limited.

About Banyan Tree Capital
Banyan Tree Capital was established in 2007 to raise and manage Banyan Tree branded hospitality real estate funds in key development markets of the Group. With a combination of fund management and asset development capabilities, Banyan Tree Capital leverages off the Group's expertise in hospitality real estate development & management to generate investment returns for its investors. Banyan Tree Capital operates from five offices in Asia enabling it to provide hands-on management of the entire development process through the fund cycle.

Banyan Tree Capital currently manages USD $440 million of capital through its two funds - the Banyan Tree Indochina Hospitality Fund and the Banyan Tree China Hospitality Fund.