SMIC hotel units seek BOI perks

MANILA, Philippines -  Hotel Specialist (Tagaytay) Inc., a subsidiary of SM Investments Corp. (SMIC) is seeking incentives for a project which will involve modernizing a hotel in Tagaytay City.

“Notice is hereby given that Hotel Specialist (Tagaytay), Inc.,...is applying for registration with the Board of Investments (BOI) as a modernizing operator of tourist accommodation facility on a non-pioneer status,” a published notice of the BOI read.

Hotel Specialist’s application is for the Mountain Wing of Taal Vista Hotel located in Brgy. Kaybagal, Aguinaldo Highway, Tagaytay City.

The Taal Vista Hotel, which is known for offering a breathtaking view of the Taal Volcano, attracts a large number of tourists.

If its application is approved by the BOI, Hotel Specialist will be entitled to incentives such as exemption from the payment of income tax for three years as well as other perks.

The establishment and operation of tourism enterprises such as hotels and tourist inns is among the activities that can qualify for government incentives.

Tourism is listed as one of the preferred activities of the 2011 Investment Priorities Plan (IPP).

Under the 2012 IPP, tourism was placed under the mandatory list or activities requiring their inclusion in the investment promotions blueprint as provided for under existing laws.

SMIC is the holding company of the SM Group of Companies.

SM is engaged in five core businesses such as shopping mall development and management (SM Prime Holdings, Inc.), retail (SM Department Stores, SM Supermarket, SM Hypermarket and SaveMore Stores), financial services (BDO Unibank Inc. and China Banking Corporation), real estate development and tourism (SM Land, Inc., SM Development Corporation, Costa Del Hamilo, Inc. Highlands Prime, Inc. and Belle Corporation) and hotels and conventions (SM Hotels, SMX Convention Specialists, Hotel Specialists – Tagaytay, Cebu and Pico).

As of the first-half, SMIC’s net profit grew 13 percent to P10.9 billion from last year.

SMIC, which recently raised $150 million from an overnight top-up placement of shares said last week is planning to hold another fund-raising program through the issuance of seven- and 10-year dollar bonds.

The funds to be raised from the planned bond issuance are intended for the prepayment of some of the company’s debt to further lengthen its debt profile.