Waterfront Philippines posts 4% net profit hike of P3.9M

From a net loss of P202 million in 2003, Waterfront Philippines Inc. (WPI) posted a four percent net profit increase of P3.9 million in 2004 as the company implemented cost cutting measures and aggressive market positioning.

Also, the country's strong tourism market specifically in Cebu, where two of WPI's four properties are located, buoyed WPI's sound financial revenue last year, said newly elected WPI president Rexlon T. Gatchalian, during the 2004 WPI Stockholders Meeting, held over the weekend at the Waterfront Cebu City Hotel and Casino (WCCHC) in Lahug.

"Working within our prescribed key result areas of increasing revenues, decreasing operating costs, and improving guest satisfaction indices across our hotel properties, your company was able to reverse its financial performance, etching out a net profit of four million pesos compared to the previous year's net loss of 202 million pesos," Gatchalian told WPI shareholders' in his report.

Gatchalian said the year 2004 was a very productive year for the company. WPI gross revenues increased by 64 percent at yearend, while gross receipts posted P1.5 billion compared to the previous year's P962 million.

He added that the company's marketing cross-selling strategy among its four properties in the country also helped in strengthening its hold, and attract revenue contributor channels like guests, events, conventions, diners, among others.

Its flagship hotel WCCHC was the company's top earner generating P227.7 million in room revenue.

Coupled with the company's improved financial position, Gatchalian said during the year 2004, Waterfront also formally assumed the management control of the Manila Pavilion Hotel.

"With the integration of the Manila based property into the Waterfront system, Waterfront cemented its hold on the title as the country's largest hotel owner and operator," said the new WPI president.

In his report, he also stressed that Waterfront is also holding on the distinction of being the only hotel chain in the country that operates properties located in key cities of the Philippines' three geographic regions of Luzon, Visayas, and Mindanao.

Despite the staggered renovation programs implemented by the company since last year to improve its services and products in all its four properties in the country, (including Manila Pavilion Hotel), Gatchalian said the company was able to turn around and make profit.

"Throughout the year, the management remained focused in achieving its key result areas. To enhance revenue stream, Waterfront continued to upgrade its products," he said.

Various hotel facilities in the four properties were upgraded and fitted to suit the needs of the chain's guests. He added that in Cebu hotels, the WCCHC, and the Waterfront Airport Hotel and Casino in Mactan, public areas and guest rooms were retrofitted with various modes of Internet connections such as WiFi (Wireless Fidelity) and broadband.

In its Davao Property, the Waterfront Insular Resort Hotel, local designers were commissioned to renovate the existing function rooms into modern state-of-the-art event spaces and suites.

Average occupancy of the four hotels combined leveled at an average of 63.5 percent, with average room rate of P1,564.

WPI's total assets now stand at P7.07 billion, a 45 percent growth from 2003's P4.88 billion. According to Gatchalian, significant to this increase is the company's acquisition of Acesite (Phil) Hotel Corporation, the former owner of Manila Pavilion.