Rockwell going into hotel development
MANILA, Philippines – The Lopez group's property arm Rockwell Land Inc. is allocating P10 billion this year for its venture into hotel development as well as the construction of residential projects and landbanking activities.
On the sidelines of the company's stockholders' meeting on Wednesday, May 28, Rockwell Land president and CEO Nestor Padillla said the company was launching its first project in the hospitality sector in July.
The project, Aruga, will offer 114 units of serviced apartments targeting businessmen, professionals and travelers seeking temporary residences in Rockwell at the Makati central business district.
Daily rates for a studio unit will range from P7,000 to P7,500, while rates for a one-bedroom unit will be from P8,000 to P9,000 and two-bedroom units, P11,000 to P12,000.
The serviced apartments will occupy 6 floors of Edades Tower and Garden Villas, a residential development, also in Rockwell.
“The Aruga serviced apartments at Edades will be the first Rockwell’s several ventures into hotel and leisure, which we plan to expand to different locations in the country,” Padilla said.
Rockwell Land plans to put up serviced apartments in other areas in Makati and in Ortigas and Cebu.
The company hopes to have total of 300 units over the next 3 to 5 years.
Meanwhile, Rockwell Land has so far launched 700 residential units this year with total sales value of P9 billion.
Company CFO Ellen Almodiel said Rockwell Land unveiled last month the 4th residential tower in the mixed-use, high-end development called Proscenium, with total sales value of P5 billion, and 300 units in Cebu with total sales value of P4 billion.
The company is also boosting its recurring income with the development of an office building also in Proscenium with total leasable space of 60,000 square meters.
With these projects, the company expects its recurring business to account for 40% of total revenues from 32% as of end 2013.
Padilla said Rockwell Land was aiming for a 16-25% growth in net income this year from P1.4 billion in 2013. Revenues are expected to grow 22% from P7.8 billion a year ago. – Rappler.com