MANILA, Philippines - Property giant Ayala Land Inc. (ALI) is boosting its hotel portfolio in Metro Manila with a P2.5-billion Seda Hotel, its largest thus far.
The new development will cater to the underserved market in Quezon City while contributing to ALI’s goal of hitting 4,000 hotel rooms by 2016, an official said.
“We’re planning a Seda Hotel in Quezon City. We think that is an unserved market,” said Jose Emmanuel H. Jalandoni, vice-president and group head of Ayala Hotels and Resorts.
“It’s a large format with around 438 rooms,” Jalandoni said, adding that the hotel will also feature a ballroom, a Chinese restaurant and all-day dining options.
With 438 standard rooms and suites, Seda Vertis North will be the largest Seda Hotel when it opens in 2016. Its target market includes discerning business and leisure travellers.
“We’re rushing (the construction) because we think that market could use a new hotel,” Jalandoni said.
The newest Seda Hotel forms part of ALI’s P15-billion investment for the first phase development of the P65-billion mixed-use urban complex Vertis North in Quezon City.
Vertis North, a 29-hectare property right beside Trinoma, is touted to be the central business district of Quezon City and the regional gateway to the north.
Outside of Metro Manila, ALI earlier announced the expansion of Seda hotel brand in El Nido, Palawan.
Jalandoni said ALI is investing P5-6 billion to develop a 100-hectare landbank in El Nido in the next five years.
“We’re thinking of a resort line in El Nido with a convention center and function rooms,” Jalandoni said. So far, ALI operates the famous El Nido Resorts in Lagen and Miniloc Islands in Northern Palawan.
ALI will build an airstrip, an airport, and a jetty in the property to attract the meetings, incentive travel, conventions and exhibits market, Jalandoni said.
Ayala Hotels and Resorts has around 2,000 rooms to date, which will double to 4,000 rooms in 2016, Jalandoni said. Its hotel portfolio is composed of Seda Bonifacio Global City, Seda Abreeza Davao, Seda Nuvali Laguna, Seda Centrio Cagayan de Oro, Intercontinental Manila, Cebu Marriott, and Raffles and Fairmont Makati.
ALI will spend P70 billion this year, up from P66.26 billion in 2013, to complete ongoing developments and new launches to help sustain the growth trajectory in the coming years. It also plans to launch 78 projects this year with an estimated value of P142 billion.
In 2013, ALI’s profits surged 30 percent to a record P11.74 billion from P9.04 billion in 2012. Hence, the property already breached the income target under its 5-10-15 program that was launched in 2009 amid the global financial crisis. It is a five-year plan ending in 2014 that aims to boost net income of ALI to P10 billion and return on equity to 15 percent.