Mass housing expert 8990 makes room for hospitality business

Housing developer 8990 Holdings is diversifying into the hospitality space in a big way, committing to pour in as much as P7 billion to build a portfolio of 3,000 hotel rooms in the next five years.

8990 Holdings unveiled on Wednesday night a new subsidiary called 8990 Leisure and Resorts, which plans to open new resorts and hotels under multiple in-house brands: Adama, Kura and Argo.

“The Philippine leisure and hospitality industry is on an upswing with the current administration focusing on tourism development. The launch of 8990 Leisure and Resorts definitely comes at a perfect time,” 8990 Holdings president and CEO Willie Uy said.

The group seeks to build on its experience in profitably running tourism-focused time-sharing property Azalea, which operates in Baguio and Boracay.

In the next five years, 8990 Leisure plans to open in the following sites: Cebu, Makati, Davao, Palawan, Boracay, Siquijor, Alabang, Manila, Iloilo, Legazpi, Clark, Lapu-Lapu, Siargao and Baguio.

8990 Leisure will bring to the market its own brands. Adama is a five-star luxury resort brand, with the properties typically nestled in picturesque settings close to nature, with price points likely between P10,000 and P20,000 a night. Kura, to be priced at P6,000 and P10,000, is a bit more affordable but pitches luxurious amenities. Argo is an urban hotel, with rooms priced below P6,000 a night.

In an interview, 8990 Holdings chair Mariano Martinez Jr. estimated that apart from around P5 billion in buildup cost, the group may invest P1 to P2 billion more to create a 3,000-room hotel portfolio serving various market segments.

As the hospitality industry is labor-intensive, the group also expects to create more employment opportunities. Martinez estimated that for every 10 rooms to be opened, the group will likely employ three to four people. This suggests at least 900 to as many as 1,200 new jobs will be created.

In Siquijor, 8990 Leisure will open two properties, one of which will be a beach resort under the Adama brand. The new hotels in Siquijor are targeted to be operational by the first quarter of 2020, during which a new airport is expected to be operational. The other property will offer more affordable options.