Filinvest to invest in new projects, expand existing businesses
Gotianun-led Filinvest Development Corp. (FDC) has earmarked P45 billion for the expansion of its various businesses this year, mostly property development, to ride on the favorable economic growth cycle.
Betting big on tourism as a key growth driver, FDC plans to scale up its hotel room capacity to breach the 3,000-mark, more than double its current capacity, with the opening of eight new hotel properties in the next five years.
This year alone, FDC has earmarked P45 billion for capital expenditures, two-thirds of which will be for property development. The group also has interests in financial services, power generation and sugar production.
“After reaching a record net income of P10.3 billion in 2017, we plan to build on our strengths by investing in new projects and expanding current projects within the group,” FDC chair Jonathan Gotianun said.
More than three-fourths of FDC’s capital outlays this year will be for the property segment while P10 billion will be reserved for other potential investments.
Within the property segment, P5 billion will be channeled to the hotel group, which currently has 1,591 rooms through FDC subsidiary Filinvest Hospitality Corp. (FHC) and is managed by Chroma Hospitality Inc., a joint venture with Archipelago International.
FDC president Josephine Gotianun-Yap said the group was seeing strong demand for tourism-oriented properties. The rollout of various infrastructure projects, such as airport modernization programs, is seen to further boost the tourism industry.
Opening this year, the newest property in FDC hotel portfolio is the Crimson Resort and Spa Boracay, which will add 192 rooms. It will start commercial operations as soon as the government allows the reopening of Boracay Island. The island was recently shut down to pave the way for clean-up operations.
Including two additional properties in Tagaytay and San Mateo, Rizal that are opening in 2018, FHC now has eight new hotels in the planning and construction stages which will make available a total of 1,700 additional rooms.
In a presentation to shareholders, Gotianun-Yap said the group was planning to build more hotels around the country, including another hotel in Mactan, Cebu—where a Crimson Resort is already operating. It intends to enter new areas like Cubao, Puerto Princesa and Dumaguete.
More hotels will also be put up in Clark, where FDC is positioning itself at the forefront of leisure development not just with the expansion of its hotel investments but also the development of the 201-hectare Filinvest Mimosa+ Leisure City, formerly Clark Mimosa Estate.
Last month, Mimosa Cityscapes Inc. (MCI), a subsidiary of FHC, was awarded a provisional license by Philippine Gaming and Amusement Corp. for an integrated casino resort in Filinvest Mimosa+. MCI has earmarked a minimum investment of $200 million for the project, composed of a casino, lifestyle mall, five-star hotel and events venue. The project also includes the renovation of the existing Quest Hotel and Conference Center-Clark, two championship golf courses and villas.
