Megaworld spending P8.5B for hotel expansion
MANILA, Philippines – Andrew Tan-led Megaworld Corporation is spending P8.5 billion to expand its two hotel brands, Savoy and Belmont, in key cities across the Philippines.
Megaworld told the Philippine Stock Exchange that it will spend P5 billion to build 3 Savoy Hotel branches in Boracay, Manila, and Cebu, and another P3.5 billion to build two additional Belmont Hotel branches also in Boracay and Cebu.
The move to bring its local hotel brands outside Metro Manila is part of the company's strategy to increase its recurring income.
Megaworld said the P2.2 billion Savoy Hotel in Boracay Newcoast is set to open by the end of 2016.
The listed developer said its 530-room Savoy Hotel Boracay is seen to be a first-class resort hotel to rise in the 150-hectare tourism township in the eastern part of the island.
"It will feature the country's first concert pool arena, overlooking the refreshing views of Sibuyan Sea," Megaworld said. (READ: Megaworld expands office footprint in Davao City)
Another Savoy Hotel is also set to open in the 25-hectare Newport City in Pasay City by next year, which is seen to house 684 rooms.
It will be the last hotel to open in the leisure and entertainment township Resorts World Manila, said Megaworld.
The company is also constructing another Savoy Hotel in its 20-hectare The Mactan Newtown in Lapu-Lapu City, Cebu. The 18-storey hotel will have 547 rooms and is scheduled to open in 2018.
"Megaworld is spending P5 billion to build the 3 Savoy Hotels in Boracay, Cebu, and Manila. Part of our goal is to make this hotel brand visible in our other townships across the country," said Jericho Go, senior vice president of Megaworld.
Megaworld has also allocated an additional P3.5 billion to expand its Belmont Hotel brand.
At present, the first Belmont Hotel operates in Newport City, offering 480 rooms and featuring amenities such as podium gardens, a 24-hour fitness center and workout area, and penthouse pool bar.
By 2018, Megaworld said Belmont Hotel will also open in Boracay Newcoast with 407 rooms, and another one in The Mactan Newtown in Cebu with 550 rooms. (READ: Megaworld to complete Visayas BPO Triangle by 2019)
"Our rapid expansion of our very own hotel brands is an indication of Megaworld’s diversification as a real estate company, and at the same time, our commitment to support the country's tourism industry," Go said.
At present, another local hotel brand owned by Megaworld called Richmonde Hotel has presence in Ortigas, Quezon City, and Iloilo City.
Also set to open is Twin Lakes Hotel in the 1,200-hectare Twin Lakes in Alfonso, Cavite, near Tagaytay.
Megaworld said this new hotel will offer 126 rooms and is set to be completed next year.
By 2020, Tan said his firm's 3 local hotel brands will have a total of around 3,800 hotel rooms. – Rappler.com