ALI to raise hotels capex
MANILA, Philippines—Property giant Ayala Land Inc. is investing around P11 billion to scale up its interest in the local tourism industry with the goal of doubling its hotel and resort room inventory to 4,100 by 2016.
Jose Emmanuel Jalandoni, ALI vice president and group head for hotel and resorts, said the expansion would include developments in the seaside portfolio in El Nido, Palawan, where about P5 to P6 billion in fresh investment would be made in the next five years.
At the sidelines of ALI’s annual stockholders’ meeting on Monday, Jalandoni told reporters that many of the upcoming offerings would be under the homegrown “Seda” brand.
Within Metro Manila, ALI is opening new Seda hotels in Arca South in Taguig, at the Circuit complex in Makati and another in Quezon City beside the Trinoma mall. Recently opened was the 150-room Seda in Nuvali, which Jalandoni said could be expanded by another 120 rooms.
ALI will also introduce a resort line for Seda, Jalandoni said. “Seda Lio,” which will have 150 rooms, will be launched as part of the developments in El Nido by 2017. At present, there are about 200 rooms that ALI operates under El Nido Island Resorts.
Jalandoni said “Seda Lio” was still under “conceptual” planning but would likely target the MICE (meetings, incentives, conferencing, exhibitions) market. As such, he said this upcoming resort would have a convention area with function rooms. This will be priced at around $150 per room per night or slightly higher than the current rate for the Seda hotels that are not built under the resort theme, Jalandoni said.
The first phase of development for the El Nido area planned by ALI spans only 100 hectares, but Jalandoni said the group’s landbank in the area was much larger at about 600 hectares.
Based on ALI’s estimate, investment per room added to the portfolio is about P4 to P6 million.
The P11-billion estimated investment will go to the areas of Bacolod, Iloilo, Makati Circuit, Seda Lio, Arca South, Quezon City, Makati, Bonifacio Global City and Cebu. Most of these will be under the Seda brand.
Apart from building resorts, he said ALI was likewise investing in the infrastructure needed. “We already completed the runway and we’re now spending for airport terminal and jetty. We need the right infrastructure in place for sustainable growth,” Jalandoni said.
Meanwhile, ALI is investing P2.5 billion for the Seda hotel to be built in Quezon City, which will be in a larger format of 438 rooms. It will have a ballroom, a Chinese restaurant and hallway dining, Jalandoni said.
Over the last five years, ALI quadrupled its hotel and resorts portfolio to reach 2,001 rooms at end-2013. Growth tripled in 2013 alone with the opening of Holiday Inn & Suites at Glorietta and Seda Abreeza in Davao City.
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