Acesite Hotel incurs higher losses in H1

The Gatchalian-owned Acesite (Phils.) Hotel Corp. incurred higher losses in the first half of this year to P81.12 million, from the P78.43-million loss recorded in the previous year-period.

Acesite owns Manila Pavillion, formerly Holiday Inn Manila.

Gross revenues, however, rose six percent to P304.08 million from P286.57 million due to the increase in rooms and food and beverage revenues. Operating income slightly increased to P111.44 million from P110.26 million.

Hotel occupancy stood at 64.04 percent from January to June this year, higher than the 60.14 percent rate a year earlier due to more aggressive marketing undertaken by the hotel staff. Average room rate also improved last semester to P1.68 billion, as against P1.595 billion last year.

Cost of sales and services grew 9.42 percent to P192.64 million from P176.31 million.

Waterfront Philippines Inc. (WPI) acquired 75 percent of Acesite in Oct. 2003 but had difficulty installing its nominees to the board pending the resolution of a case filed by the Acesite Group, contesting the sale of shares which were pledged to Equitable PCIBank.

In June 2004, however, the Makati Regional Trial Court issued an order directing the stock transfer agent of Acesite to transfer 74.89 million shares (representing 75 percent of Acesite) in the name of EPCIBank to WPI.

These shares had been pledged by Acesite Ltd. to secure certain loans granted by EPCIBank to affiliated companies of the Hong Kong-based Sino-i.com group.

Exercising rights over these shares, WPI successfully appointed its nominees to the board of Acesite in a meeting held the other day.

Acesite’s board is composed of Renato Magadia, Rexlon Gatchalian, Kenneth Gatchalian, Elvira Ting, Arthur Ponsaran, Arthur Lopez, Pablo Gancayco, Angel Umali, Lamberto Mercado Jr., Gwendolyn Feliciano, and Philip Encarnacion.

WPI is the investment holding company for the hotel, leisure and tourism businesses of the Wellex Group of businessman William Gatchalian.