Strong momentum fuels Ayala Land expansions in retail, hospitality
Ayala Land Inc. (ALI) signals its strong confidence in the Philippine retail and hospitality sectors with an expansive pipeline comprising massive redevelopments, enhancements, and new launches.
Retail expansions
The property giant’s bullishness stems from the encouraging signs and strong momentum it has seen in the market last year.
“We have a lot of conviction in the market. We have a lot of conviction in the Filipino consumer. And part of that is… the growth we saw in foot traffic (in our malls) last year—we saw 10 percent growth year on year, and for us, that was quite promising,” said Mariana Zobel de Ayala, senior vice president and head of leasing and hospitality business at Ayala Land.
Also encouraging, according to Zobel, was the performance of their newer malls. One Ayala, for example, saw its sales increasing about five times last year, while that of Ayala Malls Manila Bay doubled.
New and refreshed spaces
At present, Ayala Land has about 700,000 sqm of retail space in various stages of development. Part of this pipeline is the 78,000 sqm of new retail space targeted to be launched this year.
“We are opening about 78,000 sqm of retail space. We’re opening the first phase of our mall in Evo City in Cavite, and Park Triangle in BGC (Bonifacio Global City). We do also have the first phases of Solenad 4 and Arca South, which are going to be quite a different concept as well from a mall perspective,” Zobel said.
Ayala Land has also begun refreshing its retail mix, integrating new concepts in some of its malls. Zobel said sales have doubled in these refreshed spaces, with some areas even doing better.
This year, the company identified about 30,000 sqm that will be “refreshed” in terms of concepts.
“Beyond just the physical experience, we’re focusing on the programs within the mall as well,” Zobel added.
Also part of the retail pipeline is the ambitious redevelopment program for the company’s flagship malls namely Glorietta, Ayala Center Cebu, TriNoma, and Greenbelt. As of January, most of the renovations are about 40 to 60 percent complete, Zobel disclosed.
Growth in hospitality
Ayala Land is also on track with its expansions in the hospitality sector, with around 2,000 hotel rooms in various stages of planning and construction.
This portfolio will include Mandarin Oriental—reportedly the first six star hotel in the country according to Zobel—which is slated to open next year with some 280 keys, a “spectacular ballroom, and some incredible restaurants.” Its opening will mark Mandarin Oriental’s return to Makati City, at a new location: at the Ayala Triangle Gardens.
Meanwhile, renovations for the company’s hotels—which includes Holiday Inn, Seda BGC in Taguig City, Seda Abreeza in Davao City, and Seda Centrio in Cagayan de Oro City—are set to be completed by the third quarter this year. These exciting renovations, upon their completion, will likely see increases in hotel rates.
“For the Seda properties, we’re going to see between 10 and 15 percent increase in average rental rates. We’re really excited by the new design—it still keeps the soul of what people love about Seda, but it gives it a little bit of a refresh and something exciting for business and leisure travelers,” Zobel explained.
Also ongoing is the renovation of Lagen Resort, which was closed last year.
“We brought in a globally renowned design firm, WATG. They’re known for delivering some really unique resort properties around the world, and they reimagined the potential of Lagen, giving it a real Philippine feel (that’s) very specific to Palawan and all of the magic that Palawan brings. We’re confident and excited about the idea of… bringing in more tourism from (the country) and from around the region,” she said.
A significant rate increase is also expected for Lagen Resort, once renovations are completed.
