Alliance Global sees 35% rise in net profit this year
MANILA, Philippines—Tycoon Andrew Tan-led Alliance Global Group Inc. (AGI) expects its net profit to grow by at least 35 percent in 2011 compared with 2010 on strong growth in its property, integrated tourism and consumer-oriented businesses.
AGI also affirmed plans to scale up its stake in tourism, widely expected to be the next big thing in the Philippines, as part of its aspiration to be a leading player in this segment.
“All our companies are doing well. We’re tracking projection,” AGI president Kingson Sian said during the company’s annual stockholders’ meeting on Tuesday.
As AGI chalked up P6.9 billion in net profit, the growth outlook means that the conglomerate might end the year with over P9.3 billion in bottom line in 2011.
Subsidiary Travellers International Hotel Group Inc., its tourism estate development arm, is seen doubling its net profit in 2011 to P6 billion from a year ago, matching the contribution of Megaworld Corp.
“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,” said Tan, who is AGI chairman.
Tourism-oriented business has been contributing nine to 10 percent of the company’s revenues but this share would double with the Travellers scaling up its hotel portfolio, Sian said in a briefing after the stockholders’ meeting. In the Resorts World Manila complex across the Ninoy Aquino International Airport Terminal 3 alone, the group will have 2,800 hotel rooms under seven hotel brands in two to three years.
The group is now constructing a 2,000-seater ballroom in Resorts World, which will be the largest hotel ballroom in the country. It is also building two more five-star hotels in the complex.
By next month, Resorts World Manila will have a total of 1,226 hotel rooms spread out over three different brands, namely, the six-star Maxims Tower, the five-star Marriott Hotel and the Remington Hotel, the first budget hotel brand in the complex, which will offer 712 additional rooms at an average of $60 good for up to four occupants.
During its first year of operations, Resorts World Manila attracted two million visits from both local and foreign visitors. This year, with the opening of new attractions, the development is expected to generate at least five million visits.
Foot traffic is estimated at 17,000 per day but the opening of Remington hotel is seen bringing this up to 25,000 per day. “When the conference facility, the ballroom, is finished, we’ll have maybe 30,000-35,000 (daily foot traffic) by 2013-2014,” Sian said.
The group’s investment in Resorts World is expected to hit $1 billion from $650 million at present.
