Ayala expands footprint in tourism, consumer sectors

MANILA, Philippines - Property giant Ayala Land Inc. (ALI) is focusing on expanding its recurring income portfolio catering to the tourism and consumer sectors.

The new developments will ensure that ALI increases its footprint in growth sectors of the Philippine economy, company executives said.

“We are intent on making sure we take advantage of the very positive economic environment in the country,” ALI president and CEO Antonino T. Aquino said in a briefing.

For the hospitality business, the firm will open its own brand Seda in Arca South (formerly Food Terminal Inc.) Taguig, Circuit Makati, Quezon City and Nuvali in Laguna this year and next, said Jose Emmanuel Jalandoni, vice-president and group head of Ayala Hotels and Resorts.

ALI is also going into the affordable hotels segment offering rooms at P2,500 per night while introducing upscale brand Seda Suites.

“We plan to start development [of the affordable hotel] in Alabang and possibly in Bacolod,” Jalandoni said, adding that groundbreaking for the new hotel is scheduled in the fourth quarter.

“All our developments will really have a representation in each market. We aim to do that all over the country,” Aquino said.

So far, the hotel portfolio of Ayala Land Hotels and Resorts include Fairmont and Raffles Hotels, Intercontinental Manila, Cebu Marriott, El Nido Resorts, Raffles and Fairmont Makati, Holiday Inn and Seda Hotels.

By the end of 2013, the group will have 2,000 rooms, which will double to 4,000 rooms in 2015.

ALI is also looking to enter into more resort-type projects as it banks on the tourism sector.

“Tourism is one of the projects with a very good tailwind in terms of the Philippine economy is concerned,” Aquino said.

Aquino said ALI plans to venture into more tourism estates particularly in Luzon and Visayas where there is robust marine life and good beaches.

The Department of Tourism targets to attract 10 million foreign tourists by 2016 while encouraging investments in hotels and tourism-related infrastructure.

Aquino said township resort projects will cater to leisure home owners and retirees.

“The basic strategy ALI always does is to make sure we are aligned with positive economic indicators. We see tourism as a growth driver for the country and for ALI,” Aquino said.

A new industrial estate, which also another source of recurring income for ALI, is in the pipeline.

“We are looking for potential expansion,” Aquino said, adding that ALI and partner Mitsubishi are in talks to build a new industrial park in Southern Luzon.

ALI is the company behind the Laguna Technopark, a partnership with Mitsubishi that brought Japanese locators to the industrial park.

For the shopping centers, ALI is putting up 125,000 square meters of new retail gross leasing area particularly in UP Integrated School in Quezon City, Ayala Center Cebu and Fairview. It will also open community mall formats in Imus and Bacolod City.

The property arm of the Ayala conglomerate grew its profits by 27 percent to P9.04 billion last year from P7.14 billion in 2011 as consolidated revenues jumped 23 percent to P54.52 billion.

ALI allotted P65.5 billion in capital expenditures this year as it plans to launch 69 new projects worth P129 billion to ensure continuous growth in the coming years.