CPG ventures into hotel dev’t, partners with Accor

Property developer Century Properties Group is venturing into hotel property development and pioneering a scheme to allow investors to acquire “fractional” ownership of about half of 310 Novotel-branded hotel suites to rise at the Acqua Private Residences in Mandaluyong City by 2019.

CPG signed on Monday a partnership with leading international hotel management group Accor to open an all-suite Novotel Suites Manila at Acqua, a 41-storey building that will be the sixth and last skyscraper to rise at the estate. The final tower at Acqua will offer a mix of hotel and residential units.

This venture is in line with CPG’s portfolio diversification into the allied real estate segments of leisure and tourism. By 2020, CPG expects to have four major business legs evenly contributing to earnings, diversifying from its current concentration in vertical or high-rise residential development. Tourism-related property is one of the new segments being developed by CPG alongside horizontal or subdivision-type housing development and commercial property development.

CPG expects to double its property portfolio, revenues and net profit by 2020, group founder and chair Jose Antonio told reporters after the company’s stockholders’ meeting yesterday.

For the 41-storey Novotel Suites at Acqua, the building will be divided into two areas. There will be 149 residential units and 310 Novotel suites, 152 of which will be owned and sold as preferred shares under the “fractional” ownership scheme. A total of 608 preferred shares priced starting at P2 million each will be offered by Century Acqua Lifestyle Corp. (CALC), the holding firm for the 152 units investors who will participate in such “fractional” ownership.

There are a total of 608 board lots within four types of preferred shares to be offered by Century Acqua Lifestyle Corp. (CALC), the holding firm for the 152 hotel units to be offered under the “fractional” ownership scheme. There will be 13 shares per lot, which means CALC can offer a total of 7,904 ,which will be offered at a price of P167,000 to P450,000. Price per board lot or for all 13 shares starts at P2 million to about P5.7 million.

The first of its kind in the Philippines, the fractional ownership program entitles preferred shareholders to customized luxury vacation and business stay in the 152 units owned by CALC in Novotel Suites Manila, the option to enjoy multiple vacation destinations worldwide, hassle-free property management and an annual return from the lease of the CALC-owned units.

Preferred shareholders are entitled to use for 28 nights a year the rooms owned by CALC in Novotel Suites Manila. The room entitlement of the preferred shareholder will correspond to the class of preferred share held. Preferred shareholders are also entitled to a share in the net room rental revenue at the rate of 40 percent for all of the 152 CALC-owned units.

The preferred shareholders will also be given a five-year complimentary international membership starting on the date of turnover qualifying for an exchange program under “Accor Plus Membership,” giving access and preferred rates to 600 of Accor Hotels in Asia Pacific.