ALLIANCE Global Group Inc. (AGI), the holding firm of billionaire Andrew Tan, targets to build a total of 12,000 hotel rooms over the next six years to help boost tourism in the country.
Tan, also AGI chairman, announced his plans during the Philippines Property Awards 2014 late Wednesday, saying the 12,000 rooms for the hotel portfolio by 2020 would accommodate 2 million tourists annually.
“In support of Philippine tourism through our group subsidiaries Megaworld Corp. and Travellers International Hotel Group, we have set to build more hotels to accommodate more tourist arrivals,” Tan said.
“By the year 2020, we envision our group to be the largest hotel developer in the Philippines, with a total portfolio of around 12,000 hotel rooms. These hotel rooms will be offered under 12 different local and global hotel brands. The global brands include Marriott, Hilton, Sheraton, Westin, Okura and Maxims,” he added.
AGI currently has 1,900 hotel rooms in its portfolio and plans to build 10,100 more rooms over the next six years across Megaworld’s township developments.
Megaworld will contribute 8,600 rooms while Travellers International will account for the remaining 3,400 rooms.
“To meet our 2020 goal, we have set an aggressive expansion plan to build 10,000 new hotel rooms across our developments. These will include 2,000 rooms in Newport City; 2,800 rooms in Bayshore City; 1,900 rooms in Boracay Newcoast; 2,700 rooms in Mactan Newtown Cebu; around 470 rooms in Iloilo; and 230 rooms in Tagaytay and other parts of Metro Manila,” Tan said.
As of the first half, the existing 1,900 rooms are spread across seven hotels: Richmonde Hotel Ortigas; Eastwood Richmonde Hotel; Marriott Hotel, Maxims Hotel and Remington Hotel in Newport City; and Fairways and Bluewater in Boracay Newcoast.
Megaworld first vice president Jericho Go told reporters at the same event that the company will be revising its figures for its commercial office portfolio from the previously set 100,000 square meters (sqm) of leasable office space per year in line with the hotel portfolio expansion.
Megaworld is the country’s largest office space provider for the business process outsourcing sector.
Go said the company will close the year with a total of 700,000 sqm of gross leasable area for its office portfolio, but will still grow its office targets amid the “strong demand in office space.”
“Definitely the 100,000 sqm of office space will change. It will definitely increase because there is strong demand,” Go said.
Both hotel and office space expansion will be financed by Megaworld’s P230 billion five-year capital expenditure program and revenues from its growing retail segment.
“We will firm up our plans and figures and we’ll be able to give a more detailed and up-to-date report for the next months,” Go said.
AGI’s consolidated net profit went up 1.2 percent to P11.37 billion in the first half from P11.24 billion a year ago. Revenues dipped 1.9 percent to P59.6 billion from P60.8 billion in the same period last year due to slightly lower sales from liquor unit Emperador.
Among its subsidiaries, Megaworld contributed 44 percent to AGI’s net income, Emperador 27 percent, Travellers 25 percent, and Golden Arches Development Corporation (GADC), 3 percent.
Incorporated in 1993 and listed on the stock exchange in 1999, Alliance Global holds Tan’s businesses in property development (Megaworld); food and beverage manufacture and distribution (Emperador); quick-service restaurants (GADC); and integrated tourism development businesses (Travellers).