Vol. XXI, No. 162 [ Business World Online ]
Tuesday, March 18, 2008 | MANILA, PHILIPPINES
MICROTEL DEVELOPMENT Corp., the hospitality arm of the Phinma Group, has secured the nod of the Securities and Exchange Commission to raise its capital stock to P500 million from P40 million.
Documents obtained by BusinessWorld showed that Microtel Development had entered into a deed of assignment with Philippine Investment-Management, Inc. (Phinma) last November wherein the local conglomerate subscribed to 11.5 million shares with a total par value of P115 million.
As partial payment, Phinma will assign to Microtel Development advances and receivables worth P46.63 million.
In an earlier interview, Microtel Development Chief Financial Officer Dennis Marcelino said the capital hike is meant to "expand the Microtel franchise in the near future."
It has four upcoming projects in Cabanatuan, SM BayCentral in Pasay, Mactan and Palawan. Microtel Development has inns in Baguio, Tarlac, Batangas, Cavite, Boracay and Davao.
Microtel Inns & Suites (Pilipinas), the Philippine master franchise holder of Microtel Inn & Suites, is looking at ending the year with 10 budget hotels.
Microtel Inn & Suites is a US-based economy-hotel chain with more than 260 operating properties worldwide, catering to both local and international business and leisure travelers.
In September, Microtel Development signed an agreement with Shoemart, Inc. to construct a 150-room hotel at the 60-hectare SM BayCentral in Pasay City.
Mr. del Rosario earlier said P240 million will be used to construct the hotel, 20% of which will come from loans and the rest from equity infusion. — R.A.M. Rubio
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