Filinvest to merge hospitality units
Filinvest Development Corp. (FDC) will merge eight of its hospitality units into a single company to streamline its operations. This, amid expectations that domestic tourism will continue to improve and drive economic growth.
The Gotianun-led conglomerate on Tuesday disclosed that its board of directors had approved the move. Filinvest Hospitality Corp. (FHC) will absorb Boracay Seascapes Inc., Dauin Seascapes Inc., Duawon Seascapes Resort Inc., Dumaguete Cityscapes Inc., Gensan Cityscapes Inc., Mactan Seascapes Services Inc., Princesa Cityscapes Inc. and Zamboanga Cityscapes Inc.
Currently, these subsidiaries separately operate the Filinvest Group’s hotels across the Philippines.
Once the merger is completed, FHC will be the surviving entity, FDC said.
“The merger is an internal corporate restructuring initiative intended to streamline the organizational and operational structure of the Filinvest Group’s hospitality business,” it added.
The first said that the merger will not have any material financial effect on the consolidated operations upon completion.
FDC’s hospitality push comes amid expectations that domestic tourism in the country would boom, offsetting a decline in foreign tourist arrivals.
Real estate broker Leechiu Property Consultants earlier reported that rising travel demand spurred “a wave of hotel development,” with 5,210 new hotel keys to be added this year. Of the total, 4,300 are expected to be available within the fourth quarter alone.
Leechiu found that the majority of these projects were led by domestic operators, “reflecting local developers’ agility in capturing demand across destinations.”
The number of domestic travelers is likewise expected to reach an all-time high of 62.2 million people by 2026, the Department of Tourism earlier said.
In the first semester, revenues from hotel operations under FHC climbed by 7 percent to P2.2 billion. This was attributed to higher overall occupancy, volume and spend per guest.
Improved contributions from the food and beverage segment across its seven hotels likewise contributed to growth, according to FDC.
