The Gatchalian family-led Waterfront Philippines Inc. (WPI) said it plans to borrow fresh funds to pay off its debt and to finance the renovation of its hotels. In a disclosure to the Philippine Stock Exchange, WPI said the company will borrow P2 billion for the restructuring and refinancing of its loan with the Philippine National Bank (PNB) and to fund the renovation of its hotels in Cebu City, Mactan City, Davao City and Manila.

In February, WPI has paid P826 million for its outstanding obligations with PNB, as agreed under the court-supervised compromise agreement reached in November last year.

This brings the total amount paid to PNB to approximately P2.9 billion over the last eight years. WPI’s original loan was worth P780 million, the firm said.

Waterfront added that this payment was in line with its philosophy of corporate responsibility, good governance and its task of taking care for its 2,000-plus workforce.

The operator of the Waterfront Cebu Casino Hotel in Lahug, Cebu and the Waterfront Airport Hotel in Mactan said that despite the global financial difficulties, company finances remained in good order and its cash flows remained strong.

The company told the local bourse that with the PNB loan partially settled, WPI can focus on improving its hotel facilities and making inroads into new and emerging tourist markets.

While the tourism arrivals into the Philippines remained steady, the global economic slowdown has prompted local hotel operators to reconsider marketing focus while ensuring that hotel facilities are attractive and competitive.

But the group is confident that prospects still remain bright for the Philippine tourism industry despite stiff competition.

The Waterfront Hotel group operates over 2,000 rooms nationwide. Its other hotels include the Waterfront Davao Insular Hotel in Davao City, the Manila Pavilion Hotel and G Hotel in Manila.

The company, together with Pagcor, has an ongoing expansion of its casino operations in Waterfront Cebu City Hotel in Lahug, Cebu City and Manila Pavilion Hotel to attract more local and foreign players.
CHINO S. LEYCO