Century Properties forms tourism unit

MANILA, Philippines - Century Properties Group Inc. has created a new unit to jumpstart its foray into the hotel and tourism sector.

In a regulatory filing, the listed property firm of the Antonio family said its board of directors approved the incorporation of Century Properties Hotel and Leisure Inc.

The wholly-owned subsidiary of Century Properties will handle the hotel business, which forms part of the company’s efforts to shore up its recurring income portfolio.

Century Properties co-chief operating officer Jose Marco Antonio said the real estate firm would collaborate with foreign brands as it introduces hotels and serviced apartments. It will launch one hotel project this year.

Outside of Metro Manila, Century Properties will roll out a hotel project in Palawan as it looks at prospects in southern Philippines like in Cebu.

An eight-hectare property in Pampanga will be developed into a mixed-use project with a residential segment for the middle income market, a hotel, some office buildings and a lifestyle retail concept to the tune of P20 billion.

The government is projecting that 7,000 new hotel rooms are needed this year given the record-breaking 37.5 million domestic trips in 2012. The Department of Tourism earlier estimated that more than 20,000 new rooms must be built by 2016 to serve the growing tourism market.

DoT targets 5.7 million visitors this year, up from 4.68 million last year.

Century Properties’ board also approved the resolution “to include the authority of the company to secure and guarantee loans.”

Century Properties will launch at least P17 billion worth of new projects this year while completing the construction of existing developments.

The property firm’s net income slipped 1.9 percent to P1.8 billion last year due to an increase in income taxes. Consolidated revenues hit a record-high P10.8 billion, up 12.5 percent from P9.6 billion in 2012 due to “strong sales and healthy collection levels across all its residential segments.”

With 28 years in the business of real estate development, marketing and property management, Century Properties has completed more than 20 condominium buildings, transforming 744,576 square meters of space into premier residential and office developments in and outside Metro Manila.