8990 leisure arm allots P5 B for new hotels
The hotel and resort unit of housing developer 8990 Holdings Inc. is spending P5 billion over the next five years to put up hotels in 14 locations as it seeks to take advantage of opportunities in the tourism sector.
8990 Holdings chairman Mariano Martinez, during the launch of 8990 Leisure and Resorts, said the investment would be used to build a total of 3,000 rooms for hotels spread out in the following destinations: Cebu, Makati, Davao, Palawan, Boracay, Siquijor, Alabang, Manila, Iloilo, Legazpi, Clark, Lapu-Lapu, Siargao and Baguio.
He said each hotel would have at least 250 rooms and fall into any of the three brands: Adama, Kura and Argo.
8990 Leisure and Resorts president Lowell Yu said the five-star luxury resort brand Adama is targeted for families and would have first-class amenities; luxury hotel brand Kura would serve individuals looking for rich amenities; and urban hotel brand Argo would cater to those looking for comfortable, but affordable amenities.
Based on the plan, he said the firm would begin developing hotels in Cebu, Alabang and Siquijor in the first quarter next year under the Argo or Kura brand.
8990 Holdings president and chief executive officer Willie Uy said the firm is making the investment to take advantage of opportunities in tourism.
“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,” he said.
Martinez said the amount to be spent to build the hotels would come from internally generated funds.
“The parent company, 8990 Holdings, is a great earning company so we want to devote some of our own resources to that (hotels). We try not to borrow because of the interest rates. Because we are not going to launch together, we can do it,” he said.
Through the investment, he said the company expects the leisure and resort business to increase its contribution to the revenues and income of the company in the next five years.
“Moving forward the five year term, we want to grow what it is today to at least 20 to 25 percent in terms of gross revenue and income of the group,” Martinez said.
At present, he said the business accounts for less than five percent.
8990 Holdings is behind the following real estate developments or brands: Deca Homes (horizontal subdivision housing), Urban Deca Homes (medium-rise building), Urban Deca Towers (high-rise condominium projects), Azalea Hotels and Resorts (hotel and timeshare leisure), and Deca Homes Resorts and Residences (resort complex or wakeboard park projects).