Vol. XXI, No. 176 [ Business World Online ]
Wednesday, April 09, 2008 | MANILA, PHILIPPINES
SY-LED property holding firm Shoemart, Inc. has formed SM Hotels Corp. as it consolidates its hotel assets and takes advantage of the rising demand for investment grade tourism-related projects such as hotels and resorts.
The Securities and Exchange Commission (SEC) approved the articles of incorporation of the new company, with an authorized capital of P1 million.
The authorized capital stock of SM Hotels will consist of 10,000 shares with a par value of P100 apiece.
Corazon P. Guidote, vice-president for investor relations of listed holding company SM Investments Corp., told BusinessWorld the Sy group is consolidating its property assets under one property group called Shoemart.
The latter, a subsidiary of SM Investments, which will eventually have four divisions: residential and commercial development, tourism and hotel operations, Ms. Guidote said.
SM Investments has interests in four areas: shopping malls, banking, real estate development and tourism.
"SM Hotels is a legal vehicle. We are considering the most efficient way of reorganizing or injecting property assets into our property group," Ms. Guidote said.
She added that the Sys want to put their hotel assets in one company and create a distinct business group. "It will be easier for investors to see what we are doing."
Under SM Hotel’s articles of incorporation, it will operate and maintain clubhouses, restaurants, bars, coffee shops, refreshment parlors, cocktail and music lounges, amusement and entertainment outlets, and sports and recreational facilities within the hotels and resorts it may acquire, own or lease.
Shoemart owns 99.8% of SM Hotels, subscribing to 2,495 shares worth P249,500. It has paid P62,000.
The children of mall magnate Henry Sy, namely Henry T. Sy, Jr., Elizabeth T. Sy and Harley T. Sy bought one share each worth P100, along with SM Investments Executive Vice-President Josefino C. Lucas and SM Investment hotel investment group Senior Vice-President Merril F. Yu.
Mr. Yu, an international hotelier with over 20 years of experience in Asia, North America and Oceania, earlier said SM Investments had lined up three projects this year worth P5.65 billion.
These are the P650-million expansion of the landmark Taal Vista Hotel in Tagaytay City, a P2.6-billion hotel in Cebu City next to the SM City Cebu mall, and the P2.4-billion upscale Radisson Hotel and Regent Hotels & Resorts within the SM Mall of Asia Complex in Pasay City.
The P2.8-billion five-star hotel in Cebu will be carrying the Sofitel brand after SM Investments signed a contract last year with European hotel management firm Accor to operate the 400-room hotel. It will open by the end of this year, Mr. Yu said earlier.
Sofitel is Accor’s high-end brand. The European leader in hotels and tourism, Accor operates over 3,800 hotels with 450,000 rooms in 90 countries.
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