Hotels and resorts operator invests P5.8 million in Palawan firm

HOSPITALITY company Discovery World Corp. remains bullish about the country’s prospects for resort businesses as it increases its stake in a wholly owned Palawan-based subsidiary.

In a disclosure to the stock exchange on Thursday, the company said its board of directors had approved investing P5.8 million in Cay Islands Corp.

Discovery World will be buying 5.8 million shares in Cay Islands priced at P1 each, representing 2.7% of Cay Island’s total outstanding shares.

“This acquisition is in line with (Discovery World’s) business and will create opportunities for expansion of the corporation’s resort business,” it said.

The transaction value will be used as a working capital of the company, Discovery World said.

Cay Islands is an owner of real property in El Nido, Palawan, which is currently used for retail leasing. It is also constructing a hotel and hostel development at the site.

Cay Islands’ outstanding capital stock at present is 194.2 million shares, which will increase to 200 million shares after the subscription of Discovery World to 5.8 million shares.

During the first half of 2020, Discovery World booked an attributable net loss of P153.25 million, swinging from last year’s attributable net income of P42.13 million. Its revenues slumped 65% to P193.26 million due to the slowdown in travel and leisure because of coronavirus-related restrictions.

The company operates hotels and resorts such as Discovery Shores Boracay, Platitos Resto-Bar, Sands Lounge, Indigo Resto-Bar, Sunken Pool Bar, Forno Osteria, Estate XI, 360 Roof Lounge, Terra Spa and Club Paradise. It also owns transportation services businesses in tourist destinations across the country.

Shares in Discovery World at the stock exchange slid 10 centavos or 6.71% to close at P1.39 each on Thursday. —