Posted on November 25, 2012 10:34:10 PM [ BusinessWorld Online ]
PROPERTY DEVELOPER Robinsons Land Corp. plans to build a hotel in its Magnolia Town Square complex in order to tap underserved demand for such accommodations in Quezon City, a senior company official said recently.
“We are planning a hotel. We’re still trying to finalize the concept, and we’re not yet ready to divulge the actual product as of now,” May L. Precilla, Robinsons Land vice-president for sales and marketing, said in an interview on the sidelines of the launch of the company’s The Sapphire Bloc project at Crowne Plaza Galleria Manila on Monday last week when asked about Robinsons Land’s plans for further Magnolia Town Square development.
“It will be more of a boutique hotel, not like Crowne and Holiday Inn [Galleria Manila]. It will be smaller,” Ms. Precilla added, referring to Robinsons Land’s two hotels in its 5,000-hectare Robinsons Galleria complex in Quezon City.
Magnolia Town Square is Robinsons Land’s mixed-use development at the corner of Aurora Boulevard and Doña M. Hemady Avenue in New Manila. The complex sits on a 5.2-hectare property that used to be the site of the old Magnolia Ice Cream House.
The mixed-use project consists of the four-tower The Magnolia Residences condominium complex and Robinsons Magnolia, a four-storey shopping mall.
“It will be a good complement to our hotel developments right now.
And also, when you think of the Quezon City or New Manila area, there is no hotel there as of now. It could be a first in the area,” Ms. Precilla said.
Meanwhile, asked whether the company will rope in a foreign brand to operate the hotel, Ms. Precilla said: “Let’s just say it will be a Robinsons brand.”
Robinsons Land, incorporated in 1980, is the property arm of listed conglomerate JG Summit Holdings, Inc. It has built 32 malls, 33 residential projects and eight office buildings to date.
Aside from Crowne Plaza and Holiday Inn in Quezon City, Robinsons Land operates eight other hotels under its Hotel Division: two Summit hotels each in Cebu and Tagaytay cities, as well as four budget GoHotels in cities in Luzon and the Visayas, its end-June financial report showed.
For the 2012 fiscal year, the Gokongwei-led company has earmarked P13 billion for capital expenditures -- just slightly below P13.9 billion in 2011 -- which will be sourced from cash operations and debt, Frederick D. Go, Robinsons Land president, said last April. More than 60% of the funding will go to malls, office buildings, and hotels, while the rest will be earmarked for residential condominiums and housing units.
The company grew its net income by 10.16% to P3.36 billion in the nine months ending June from P3.05 billion the previous year on the back of improved revenues across all its business segments.
The firm’s shares rose 18 centavos to P18.44 apiece last Friday. -- Franz Jonathan G. de la Fuente