SM Prime readies P15B for 5-year expansion plan
The hospitality unit of real estate giant SM Prime Holdings Inc. will shell out P15 billion in the next five years to expand its portfolio, banking on the travel boom and strong demand for properties catering to big events.
In a stock exchange filing on Wednesday, the Sy family-led developer said SM Hotels and Convention Corp. (SMHCC) would build eight new hotels and two convention centers “in key destinations” across the country.
This would add at least 1,500 guest rooms to its portfolio of 2,600 existing rooms, SM Prime said.
“The rise in hotel stays and event bookings signals a vibrant rebound for the hospitality and MICE (meetings, incentives, conferences and exhibitions) sectors,” SMHCC executive vice president Peggy Angeles said in their disclosure.
SMHCC’s expansion plan comes after its hotels achieved a 67-percent occupancy rate last year, up from 65 percent in 2023.
The company currently has 10 hotels including luxury brands Conrad and Radisson Blu, leisure brands Taal Vista and Pico Sands, and business brands Park Inn and Lanson Place.
SMX Convention Centers recorded a 15-percent jump in hosted events in its eight facilities, equivalent to around 6.3 million visitors.
These included trade shows, corporate events and industry exhibitions, some of which exceeded prepandemic levels in terms of volume, according to SM Prime.
Spending plans
SM Prime earlier said it would spend P12 billion this year to expand the capacity and improve the facilities of its office, hospitality and MICE businesses.
This will cover the construction of convention facilities, renovation of hotel rooms and additional food and beverage stores in hotels.
Meanwhile, P67 billion would be set aside for SM Residences, its new residential brand, as well as integrated property developments.
The expansion of the company’s mall gross floor area by 205,400 square meters will entail a P21-billion investment.
SM Prime’s net income last year jumped by 14 percent to an all-time high of P45.6 billion as all business units registered gains.
This came despite a weakness in the country’s residential and office sectors last year, with both segments registering record-high vacancy rates.
