Vol. XXII, No. 158-A [ BusinessWorld Online ]
Saturday, March 14, 2009 | MANILA, PHILIPPINES
THE CORPORATE regulator yesterday approved the two-thirds capital hike of Mactan Shangri-La Hotel & Resort, Inc. to P1 billion for possible development of its properties in Cebu.
Mactan Shangri-La added 400,000 redeemable common shares worth P1,000 each, documents from the Securities and Exchange Commission showed.
The hotel company has the right to buy back the shares whenever it wants, paying investors the same price at which the stocks were bought.
Mactan Beachfront Resources, Inc. paid in cash for P409.49 million worth of new shares.
Mactan Shangri-La, which operates the 547-room hotel and spa resort of the same name on a 13-hectare plot in Cebu, said the fresh capital will be used to consolidate its properties in Punta Engano, Mactan Island for possible development.
Company officials could not be reached for more details regarding the firm’s plans.
In a visit to popular tourist spot Boracay island last week, President Gloria Macapagal Arroyo said investments in the local tourism industry are continuing to shoot up despite worsening economic conditions, with firms expected to open 2,000 new hotel rooms employing 3,000 Filipinos this year.
Mrs. Arroyo said the industry has grown by an average of 10.6% over the last four years, with investments reaching up to P550 billion.
The Tourism department said it will focus on trying to attract more visitors from China, India and Russia, since these countries were not as hard hit by the global economic crisis, unlike the United States and Japan. — Don Gil K. Carreon
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