The hospitality arm of property developer 8990 Holdings is set to open next year a new luxury resort in Siquijor, the first of 10 leisure projects expected to contribute P3 billion in annual recurring income to the group.
All 10 projects helmed by 8990 Leisure and Resorts are expected to be completed before 2023. Other hotels will rise in Palawan, Cebu, Boracay, Davao, Iloilo, Siargao, Baguio and Metro Manila.
The inaugural offering is 250-room Adama Resort Siquijor, which will rise by the second half of 2020 on a 20-hectare beach-front property. In a disclosure to the Philippine Stock Exchange Wednesday, 8990 Leisure and Resorts president Lowell Yu said this would be a “pioneering development that will highlight the tourism potential of Siquijor—from its pristine reefs and virgin white sand beaches to its unique reputation as a mystical island.”
Siquijor is an island in the Central Visayas known for its beaches and natural scenery but whose tourism potential is still largely untapped.
Yu, son of 8990 Holdings director Luis Yu, has a track record of growing other new businesses outside his father’s mass housing empire. He is the man behind high-end membership shopping chain Landers Superstore, Popeyes Chicken, Kuya J, Isla Sugbu Seafood City and the iconic Grand Convention Center of Cebu.
It was announced in late 2018 that the 8990 group would commit as much as P7 billion to build a portfolio of 3,000 rooms in the next five years through 8990 Leisure and Resorts. This newly created unit plans to open new resorts and hotels under multiple brands that will serve all markets from the budget-conscious to the more affluent.
The Adama brand, for example, pitches five-star luxury resorts. Price points will likely be between P10,000 and P20,000 per night.
Catering to all market segments is the vision behind the group’s new hospitality unit, as it draws from its experience in profitably running tourism-focused time-sharing hospitality brand Azalea in Baguio and Boracay. Operations of Azalea will be separate from those of 8990 Leisure.
Eventually, 8990 Holdings wants to derive around 20 percent of its revenues from recurring businesses, like the hospitality space.