Listed resorts operator Boulevard Holdings Inc. (BHI) said its sales in the nine months to February shrank by nearly half from a year ago amid continued losses at its Friday’s Boracay Resort.
In a disclosure to the stock exchange, the company said sales for the nine months plunged 48 percent to P48.38 million from P100.6 million a year earlier.
“In line with our existing problems at Friday’s Boracay Beach Resort on Boracay Island in Malay, Aklan which was previously disclosed, we report the significant negative effect on sales for the period,” BHI said.
BHI has been incurring sales losses since February last year as hotel room rates at Friday’s Boracay have dropped from an average P11,000 a night to P8,500 a night.
For the month of February alone, sales dropped 56 percent to P8.04 million from P14.44 million in the same month last year.
BHI has been suffering declining sales due to a land dispute that has affected about a third of Friday’s Boracay after it was forcibly occupied in February last year by armed men led by the son of the resort’s former owners Datu Yap Sumndad and Mila Yap.
The group was demanding payment of four years’ worth of lease even if BHI had already purchased the land at time.
BHI said it has so far paid P65 million to the family of Datu Yap Sumndad and Mila Yap, as well as Boracay Mayor John P. Yap in hopes of resoling the Boracay dispute.
Meanwhile, BHI’s Friday’s Puerto Galera hotel resort is only 65-percent done and has not made any progress since it was hit by Typhoon Yolanda in November 2013.
BHI’s resorts and hotels portfolio consists of Friday’s Boracay, Friday’s Boquete Beach Resort in Puerto Galera, Oriental Mindoro and Friday’s Puerto Azul. BHI was incorporated on July 13, 1994 as a holding company focusing on resorts, leisure, rentable real estate properties and tourism-related businesses.