CEBU CITY — While preparing for the development of the 235-hectare Mimosa Leisure Estate in Pampanga, Gatchalian-owned Waterfront Philippines, Inc. is studying the prospects of acquiring more properties in key tourist destinations in the country.
Stockholders approved over the weekend the acquisition of hotels by majority shareholder Wellex Group in exchange for company shares. The Wellex Group, Inc. now owns 46% of Waterfront.
"We have started with Mimosa. It’s a done deal. But we still have to see if it’s viable," Chairman Renato B. Magadia told reporters after the stockholders’ meeting here on Saturday.
Waterfront won the P1.5-billion contract to develop and operate Mimosa in the former Clark US airbase.
The 90-day memorandum of understanding between Waterfront and the Clark Development Corp. (CDC) will mature into a lease agreement by the end of October.
"Mimosa is very challenging. But we’re five steps ahead. On a scale of one to 10, we’re at number six," Mr. Magadia said.
CDC earlier announced that Waterfront would invest P1 billion for the development of Mimosa.
Among the possible acquisitions after Mimosa is a resort on Panglao Island in Bohol, Central Visayas.
Kenneth T. Gatchalian, company president, said Waterfront was still in the exploratory stage in Bohol.
Waterfront has been eyeing a resort development in Bohol, about an hour away by fast ferry from Cebu, to complement its two hotels in Cebu City.
"We have been wanting to explore resort operations because there’s a lot of potential there. But there’s nothing definite yet. The acquisition [of an existing resort] is always better although there are also benefits from constructing our own [resort]," Mr. Gatchalian said.
Marco Protacio, Waterfront area general manager for Visayas and Mindanao, said it would be wise for the company to have a property in Bohol because the island is one of the prime tourist destinations in the country.
There is a lack of high-end resorts in Bohol and there is still no major hotel brand there, even in popular Panglao.
The company is also eyeing more properties in Metro Manila as well as in other key cities. "It depends on the opportunity and the availability [of a property]. It could be another hotel in Manila or a resort in Palawan," Mr. Magadia said.
Waterfront reported an almost ninefold increase in net income to P162.65 million in 2007 due to growing tourist arrivals. Average occupancy in its properties was 72% and consolidated room revenues grew by 8.9% to P710 million.
Its flagship property, the Waterfront Cebu City Hotel and Casino, accounted for 39% or P732.14 million of total revenues. The Manila Pavilion Hotel accounted for 37% with P706.2 million.
Other Waterfront hotels are the Waterfront Airport Casino and Hotel in Mactan, the Waterfront Insular Hotel Davao, and the boutique G Hotel on Roxas Boulevard in Manila.
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