Torre Lorenzo group diversifies into hotels, resorts with kitty

Torre Lorenzo Development Corp. (TDLC), which is known for its niche university condominium projects, is investing R9.4 billion as it diversifies into the development of tourist accommodation facilities to address strong demand for luxury hotel and resort facilities in Davao and in Lipa, Batangas.

Tomas P. Lorenzo, CEO of TDLC, said in a press conference they are in partnership with Dusit Thani Philippines, Inc. (TDLC), formerly Philippine Hoteliers, Inc., as the operator for their hotels in Davao with R6.4 billion and R3 billion for Lipa, Batangas.

“We are diversifying to hotels and leisure projects from residential condos because we really believe in growth areas outside of Manila,” said Lorenzo.

Going into the tourism sector will also balance its revenue sources from the long-term revenue generation from condominium revenues and into the recurrent income from hotel operations.

Emmanuel A. Rapadas, TDLC Chief Finance Officer and senior vice president for support services, said the company posted a 35 percent growth in 2017 to R1.8 billion in gross reservation sales compared to 2016. TDLC expects to further increase its revenue sales this year to R2.4 billion to R2.5 billion.

The goal is that in five years, TDLC will generate 40 percent of revenues from hotels and 60 come from condominium sales. By 2020, he said, 25 percent will already come from hotels operation and recurrent income sources.

For Davao City, TDLC is investing R4.5 billion for the development of five star DusitD2 Hotel in Lanang and serviced apartments Dusit Thani Residence Davao. This will be the first five-star branded tourist accommodation facilities in Davao City, which is now facing shortage in hotel rooms following the influx of visitors since President Duterte, a native of Davao, rose into power. Another R1.8 billion to R1.9 billion would be invested for the development of its 6-hectare luxury resort project within its 36-hectare Lubi Plantation island located in the Davao Gulf in Compostela Valley, which is 25 minutes by speed boat from Davao.

Part of the investment will be for the Dusit Thani Hotel at Lubi Planation, which will consist of 54 cottages to be constructed with two rooms each for a total of 108 (54 suites and 54 deluxe rooms). Construction has started for the first 18 villas already. There will be a 200-capacity fully airconditioned chapel, a 1,000-capacity ballroom, a diving center, restaurants, marine sanctuary and water sports, among others.

Lorenzo said they are rebranding the Kopia Island into Lubi (coconut) Plantation, which is being promotion as the ultimate wedding destination and venue for special events.

The resort is now open to visitors as there are already a few amenities that have been completed. Once these facilities are completed, TDLC will infuse a total of 400 hotel rooms in Davao (108 villa rooms in Lubi, 174 rooms DusitD2 Hotel, and 174 Dusit Thani Residence Davao).