Acesite Phils OKs P150-M rights offer

Gatchalian-led Acesite Philippines Hotel Corp. has approved a P150-million stock rights offering to fund a complete facelift of the Manila Pavillion Hotel along UN Avenue in Manila.

In a disclosure to the Philippine Stock Exchange, Acesite said eligible shareholders can buy 0.38 common shares for every one share held as of a record date yet to be approved by securities regulators. 

Acesite said its board likewise approved a plan to raise its authorized capital stock to P2.01 billion from only P310 million.

At the same time, Acesite said its board likewise approved the declaration of a 300 percent stock dividend or three common shares per one outstanding common share to stockholders as of a record date yet to be approved and securities regulators.

A special stockholders meeting will be held on Sept. 26 to approve the proposals.

Manila Pavillion’s makeover, which will take three years to complete, will require funding of between P60 million and P80 million. Around P50 million has already been spent for the refurbishment of the hotel’s first four floors and public areas which include the lobby and some food and beverage outlets.

Since Acesite started renovating Manila Pavillion, the hotel’s occupancy has increased from 62.64 percent in 2006 to 64.69 percent last year.

Manila Pavillion has 538 rooms and suites that have individually controlled central air conditioning, private bathrooms with bathtub and shower, multi-channel radio, color television with cable channels and telecommunications facilities. The hotel has approximately 2,200 square meters of meeting/banquet/conference facilities, and also houses several restaurants such as Seasons Cafe (coffee shop), the Rotisserie (grill room), the Peony Garden (Chinese restaurant), the Boulvar (bar and lounge) and the Patisserie (bakeshop and deli items).

The average occupancy rate of hotels in Metro Manila has dropped 15 percent and could even get worse towards the end of the year.

Last year, Acesite reported a turnaround in its financial performance as it posted a net income of P87.9 million from the P19.6 million net loss in 2006.  Total revenues reached P706.2 million, P240.3 million of which came from room revenues, P243.9 million from food and beverage and P211.7 million from rental income. — Zinnia Dela Peña