AYALA LAND HOSPITALITY (ALH) said it plans to invest $500 million (around P28.63 billion) over the next five years to double its hotel room capacity to 8,000 by 2030, according to its chief executive officer (CEO).
“We will nearly double the size of our portfolio, close to 8,000 rooms by 2030,” George I. Aquino, president and CEO of Ayala Land Hospitality, said during a briefing on Tuesday.
“Our capex investment in the next five years is $500 million, and I think what we plan to do is really a combination of different types of hotels, expanding on our homegrown products, but also looking at other brands,” he added.
ALH, the hospitality arm of property giant Ayala Land, Inc. (ALI), has over 4,000 rooms across its homegrown brands, including Seda Hotels, El Nido Resorts, and Huni Lio, as well as international luxury brands such as Raffles Makati, Fairmont Makati, and the upcoming Mandarin Oriental Makati.
“In terms of financing, it’s a mix of debt and equity. It’s been a very profitable business line for us, so depending on where we see things over the next few months, but it’s locked in our capex,” ALI Senior Vice-President and Leasing and Hospitality Group Head Mariana Zobel de Ayala told the briefing.
“[Our] 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,” Ms. Zobel de Ayala said.
The Philippine government is targeting 12 million tourist arrivals by 2028. In 2024, the country welcomed 5.95 million foreign visitors, up 9.15% from 5.45 million in 2023, data from the Department of Tourism showed.
While ALH is optimistic about the privatization of Ninoy Aquino International Airport, it is also banking on foreign tourist arrivals at airports in Mactan, Cebu, and Clark, to drive more visitors, Ms. Zobel de Ayala said
The company is also considering launching a new brand focused on a “mountain outdoor experience,” according to Ms. Zobel de Ayala.
“Similarly, we’re working on a product in Mactan, Cebu — a five-star, Filipino-anchored hotel, which again, is more of a beach location,” she said.
ALH is also planning to renovate Huni Lio Resort in El Nido, Palawan, and build a bar adjacent to the property.
“Our idea is to then take it to other beach destinations, tourism destinations, and even the city,” ALH Creative Director Paloma Urquijo Zobel de Ayala said.
In 2024, ALI recorded a 15% increase in net income, reaching P28.2 billion from P24.5 billion in 2023, driven by record-high revenue. — Beatriz Marie D. Cruz