Ayala Land allots $500-million capex for hotel expansion
Ayala Land Hospitality (ALH) will spend $500 million in the next five years to double its hotel room capacity.
This move is being taken as Ayala Land Inc.’s hotel and resorts arm pursues a massive rebranding campaign to capture more markets and take advantage of the country’s booming tourism industry, as well as government infrastructure projects.
George Aquino, the newly appointed president and CEO of ALH, told reporters during a media event on Tuesday that they had wanted to expand their hotel room portfolio to 8,000 by the end of the decade.
Funding will be a combination of debt and equity, Aquino said.
“What we plan to do is a combination of different types of hotels, expanding on our homegrown products but also looking at other brands,” Aquino added, noting that growth will span across the premium economy and luxury segments.
ALH—the portfolio of which includes Seda Hotel, El Nido Resorts, Huni and Lio—officially relaunched its brand on Tuesday to focus its expansion on “authentic Filipino experiences.”
By the third quarter, ALH will launch Lagen Resort in El Nido, Palawan, with an international wellness firm slated to lead developments for the facility’s spa.
This comes amid the government target of 12 million tourist arrivals by 2028 and an anticipated increase in infrastructure investments.
Mariana Zobel de Ayala, leasing and hospitality head at Ayala Land Inc., said they would prioritize expanding the company’s existing estates, particularly those in Makati, Cebu, Batangas and Davao.
“The first priority would be where we could add value to our estates. But the second priority is looking at areas where there are direct international flights,” Zobel said.
Apart from this, ALH also unveiled plans to launch a homegrown five-star hotel brand under its Project Vodka. Two hotels under this brand will be built in the provinces of Batangas and Cebu totaling up to 600 rooms, according to ALH.
According to Zobel, Project Vodka will “champion the Philippine glamor to deliver a distinct experience that will be exciting and memorable to the world’s most sophisticated travelers.”
Last year, strong sales from premium brands and demand for properties outside Metro Manila lifted the earnings of ALI by 15 percent to reach P28.2 billion. Its top line likewise swelled by 21 percent to a record P180.7 billion.
