BHI resumes Puerto Galera resort project

PANLILIO group-led Boulevard Holdings Inc. (BHI) has resumed the development of a new Fridays beach resort in Puerto Galera, a project that was derailed by earlier problems on its older leisure estate in Boracay Island.

BHI disclosed to the Philippine Stock Exchange on Thursday that its majority shareholder JP Guilds Inc. had raised funds for the project and committed P150 million to P200 million in cash to continue the construction.

The company said it was now in the process of bidding out the various disciplines such as buildings, infrastructure like electrical and water and landscape works. Full construction of Friday’s Puerto Galeria is set to begin on Oct. 12.

“Like Fridays Boracay, which grew organically from an eight-bed, land-rented area in the 80s to a prime resort land owner and operator worth (P)1.8 billion on appraisal, we hope the only new hotel in the UNESCO-recognized Puerto Galera lagoon since 1985, will capture the high-end niche market,” BHI said.

Once completed, BHI projected that the second Fridays resort would add about P12 million to P20 million in monthly revenues during the peak season of November to June, in turn creating a free cash flow of P6 million to P8 million for each “high season” month.

“We hasten to add our capital structure for the money we shall be receiving is purely equity over equity. So, the stakeholders are simply between our staff, suppliers, and us shareholders. There is no bank debt,” BHI said.

BHI recalled that the project had been mothballed at the end of 2013 as the company had to divert more than P190 million to address its problems in Fridays Boracay Resort. In February 2014, BHI reported that “armed civilian men” led by a scion of the family that sold the lot years ago had occupied the hotel-resort.  Charges of forgery filed by the previous owner had been dismissed since then, affirming BHI’s ownership of the property.