MANILA, Philippines – Capitalizing on a booming tourism market, Alliance Global Group Inc. (AGI), the listed investment holding firm of tycoon Andrew Tan, is rolling out four more hotel projects in the next five years within its 10-hectare integrated tourism estate Resorts World Manila.
During the company’s annual stockholders meeting yesterday, AGI chairman Tan said the new hotels will boost the group’s room inventory in Resorts World Manila in Pasay City to 2,800 rooms by 2016 when tourist arrivals are expected to hit 6.5 million.
“We are extremely bullish about the prospects of the Philippine tourism industry. We have committed substantial resources to build up our capacity and be a major player in this sector. The tourism industry is one of the country’s key economic drivers and therefore, the private sector needs to step in and invest alongside the government,” said Tan.
AGI president Kingson Sian said Resorts World Manila, which opened in August 2009, is eyeing at least five million visits this year from two million in 2010.
Sian said the group expects to put up a total of seven hotels by 2016 with the construction of an additional six-star hotel, two five-star hotels, and two budget hotels in addition to its three different brands: Maxims Tower, Marriott Hotel and Remington Hotel.
All three hotels are expected to host a total of 1,226 rooms by next month.
With an expected aggregate room count of over 2,800 that can accommodate 600,000 local and foreign investors, Resorts World Manila will have the largest concentration of hotel rooms built on a single street, Newport Boulevard, the main thoroughfare of the multi-million-dollar complex.
Sian noted that Marriott has the highest occupancy among five star hotels in the metropolis.
To ensure sustained growth, AGI will also begin construction next year of the 31-hectare Resorts World Bayshore in Entertainment City Manila, its second integrated tourism estate. At least $1 billion will be invested in the project, which is three times the size of Resorts World Manila.
Amid the strong performance across all business units, AGI expects its net earnings to grow at least 35 percent this year from P9.5 billion in 2010. Net income attributable to shareholders amounted to P6.9 billion last year.
Sian said business units Travellers International Hotel Group, developer of Resorts World Manila, is forecast to double its profit to P6 billion this year. Flagship property arm Megawold Corp. likewise expects to hit P6 billion in profit this year on robust sales.
AGI’s other units include Emperador Distillers Inc. and Golden Arches Development Corp. (GADC).
Emperador Distillers produces Emperador, Generoso and Emperador Light brandies and a line of flavored alcoholic beverages called The Bar.
GADC,on the other hand, operates the quick service restaurant business under the McDonald’s brand.
==============================================================================
By: Zinnia B. Dela Peña
Source: The Philippine Star, Sept. 21, 2011
To view the original article, click here.
Comment here