MANILA, Philippines—Upscale property developer Rockwell Land Corp. will roll out a chain of serviced apartments under a new brand called “Aruga.”
The first of the planned establishments will be put up at the Rockwell Center in Makati, occupying part of the newly built Edades Tower and Garden Villas. The 114-room Aruga establishment will open its doors to the public by July this year.
“Aruga means nurture in Filipino, embodying our goal of delivering genuine Filipino service to guests,” Rockwell resident Nestor Padilla said during the company’s stockholders’ meeting on Wednesday.
Rockwell plans to develop three more Aruga properties over the next few years, he added.
The venture into the hospitality business is part of Rockwell’s bid to grow its recurring income from a mix of retail, office and hospitality segments. The goal is to attain a 60-40 percent mix of residential development to commercial portfolio by 2016. Recurring income accounted for about 32 percent of the company’s cash flow or earnings before interest, taxes, depreciation and amortization in 2013, while the rest was derived from residential development.
This year, Rockwell aims to grow its net profit by at least 15 percent to a high of 26 percent, or an average of 20 percent, Padilla said during a briefing after the stockholders’ meeting. Revenues are estimated to reach P9 billion to P9.5 billion—higher than the estimated P7.8 billion reported last year.—Doris C. Dumlao