BHI to turn Boracay resort into luxury boutique hotel

Panlilio-led Boulevard Holdings inc. (BHI) said it will tear down its Fridays Boracay, which is being operated by its unit Friday Holdings inc. (FHI), as the company has set its sights on the premium market.

Jose Marcel E. Panlilio said it is tearing down its 50-room resort in Boracay and will renovate the entire facility to turn it into a high-end boutique hotel.

Panlilio said they decided to close down the resort to guests despite the full occupancy status of Boracay.

“We won’t open up Fridays Boracay if BHI is just going to earn a run-of-the mill return based on cut-throat room rates, ranging from P5,000 to P8,000 a night. We are throwing in a lot of capital from the recent sales proceeds to reposition our market segment to within the P12,000 to P20,000 a night clientele,” Panlilio said.

He said the new facility will have “new elevators to handle clients coming in from the mountain behind us, brand new plumbing system, new employee housing and dining facilities, new landscaping and lighting scheme and two new restaurants at the beach front”.

“In other words, BHI’S predicate of spending monies is for a resultant new high-end boutique hotel product to compete in the Boracay super premium market.”

Panlilio said the company expects a free cash flow of more than P9 million a month after fixed and working capital reinvestment. “We look forward to definitely opening at the end of September this year.”

Citing government data, Panlilio said Boracay Island earned P49 billion in 2019, while domestic tourism stood at 914,928 visitors and foreign tourists at 827,531.

This year, the foreign component of visitors to Boracay is only expected to occur at the last quarter of the year, he said.

According to the Malay Tourism Office, a record total of 150,597 tourists, mostly locals, visited the island in March alone, compared to the monthly combined foreign and domestic visitors of 145,204 in 2019.

“It is in this environment, FHI hopes to grow its resort revenues. Please be assured we are laying the basis for earnings growth in the medium term derived from solid tourism and property opportunities,” Panlilio said.