Posted on 09:25 PM, July 13, 2010 [ BusinessWorld Online ]
ANDREW L. TAN-led Alliance Global Group, Inc. is set to start the construction of its fourth hotel at the Newport City project in Pasay, the listed firm told the stock exchange yesterday.
Two more hotels will be built in the area fronting Terminal 3 of the Ninoy Aquino International Airport in the next five years, which will make Newport City the single real estate project with the largest concentration of hotel rooms in the country.
Meanwhile, revenues from the integrated tourism project Resorts World, also in Newport City, are projected to reach $1 billion in the next three years.
“[Remington] is the fourth hotel to rise in Newport City, and it clearly demonstrates both our strong commitment and our confidence in the potential of the tourism industry in the Philippines,” Alliance Global President Kingson U. Sian said in a statement.
Groundbreaking for the 540-room luxury Hamilton Hotel has been scheduled for the third quarter.
Hamilton Hotel, which is expected to be completed by 2012, will bring the total number of hotel rooms in Newport City to about 1,900.
Alliance Global is already operating the 342-room Marriott and the six-star, all-suite, luxury hotel Maxims in Newport City, and is expected to complete budget hotel Remington in the first half of 2011.
“Another two hotels are programmed to rise within the next five years in Newport City, bringing the total room count to around 2,500,” Alliance Global said.
Newport City wants to capture local and foreign tourists due to its proximity to the airport.
Newport City also hosts condominium projects of Alliance Global property unit Megaworld Corp. and Resorts World Manila, a casino complex described as the first “integrated tourism estate” in the country.
Since starting operations in August last year, Resorts World Manila has served two million guests. “With the number of hotel rooms existing and planned, Alliance Global expects foreign visitors to Resorts World [to] reach 800,000 within the next three years,” the listed holding firm said.
“This can easily translate to tourist receipts of at least $1 billion,” it added.
Last year, Travellers International Hotel Group, Inc. committed to invest about $740 million until 2012 to redevelop the old Philippine Air Force barracks in Pasay into a gaming and tourism zone. Travellers International is a partnership between Alliance Global and casino-resort operator Genting Hong Kong.
Alliance Global is into property development through Megaworld. It also owns consumer units Emperador Distillers, which produces brandy labels Emperador, Generoso and The Bar; and Golden Arches Development Corp., the master franchise holder of McDonald’s in the Philippines.
Shares in Alliance Global -- which posted a 12% growth in consolidated profits to P2.22 billion in the first quarter -- dropped to P5.60 each yesterday from P5.70 on Monday. -- Neil Jerome C. Morales
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