Alliance Global boost tourism portfolio

ALLIANCE Global, Inc. is boosting its tourism portfolio of property development.

Andrew Tan, chairman of Alliance Global, has expressed interest in the potential privatization of the Philippines’ premier airport complex in Pasay City which would fit to the company’s focus on tourism.

The company will jumpstart the development of its Resorts World Bayshore project by next year which will herald the group’s single-biggest tourism-related business in the Philippines.

Recently-acquired Global Estate Resources, Inc. is busy preparing the development of its huge landbank bulk of which is located in the tourist-destination island of Boracay.

Unit Travellers International Hotel Group, Inc. (Travellers) meanwhile is busy developing the 10-hectare Resorts World Manila complex in front of the Ninoy Aquino international airport (NAIA) terminal 3 and which is fast becoming a gaming hub in Metro Manila.

Kingson Sian, president of Alliance Global, said the group is "committed to invest on tourism projects" with a minimum of $1.1- billion investment for the 31-hectare project in PAGCOR City which is being groomed by the government to be the country’s premier gaming district in the country.

While details of the project remain under wraps, Alliance Global through Travellers plans to put up two to three hotels with a combined capacity of 2,800 rooms. The development also includes a casino component.

In Global Estate, the group has committed to spend as much as P20 billion to develop properties like Boracay New Coast in Boracay and Twin Lakes near Metro Tagaytay.

Boracay New Coast is estimated to cost P15 billion while Tagaytay Twin Lakes will cost P5 billion.

Both projects will feature an integrated, master-planned layout and world-class resort offerings and amenities.

Global Estate said it is positioning Boracay Newcoast as a "catalyst" for the area’s tourism growth. The project is eyed "to redefine the leisure and holiday experience of visitors in the area and help attract 350,000 more tourist each year."

Boracay Newcoast encompasses 14 percent of Boracay and boasts of a kilometer-long white beach, the first and only golf course in the island and an entertainment center being positioned as the new nightlife hub of Boracay.Four world-class hotels with a total of 1,500 rooms will be built in Boracay Newcoast, tapping three international brands plus AllianceGlobal’s own to manage the hotels.

Alain Sebastian, assistant vice president of Global Estate, said they plan to complete Boracay New Cost in five years.The 1,149-hectare Twin Lakes is being positioned to be a medical and educational tourism destination.

Twin Lakes will be accomplished in phases, with the initial one overlooking the Taal Lake. It will feature a vineyard and chateau, a hotel and spa, a shopping village, residential villas and condominiums, and a sports and country club, the company said.

Succeeding phases will include a golf course, a diverse set of residential communities, international hotels, plantation estate, botanical gardens, lake view manor, mountain-inspired lodging and facilities, health and wellness centers, boarding schools and retirement villages complete with modern medical amenities.

Sian said they expect to recognize contributions from Global Estate as the company starts selling lots in Boracay New Coast.Expectations are very high for Travellers’ Resorts World due to the growing number of visitors.

Sian said prospects of the Resorts World business are so great that in terms of growth, Travellers could overtake the property development unit Megaworld Corp. Sian is also senior vice president and executive director of Megaworld.

Travellers is a joint-venture between Alliance Global and Malaysia-based Genting Malaysia Berhad.Travellers is seen to double its profit this year to P6.4 billion from P3.2 billion last year as the company’s operation goes into full swing.

The first integrated entertainment hub to be operated by a single entity in the Philippines, Resorts World Manila boasts of three hotels, a mall and casino complex, with the casino component the biggest casino to be granted license by the Philippine Gaming and Amusement Corp. in the country so far.

Sian is confident of a spike in average foot traffic in the whole complex as new projects are completed in the area. Currently foot traffic hits 30,000 on a good day while average traffic stands between 18,000 and 20,000 per day. Of these numbers, 15,000 to 16,000 visit the complex’s casino daily.The casino has 1,000 slot machines and 300 tables.

For now, the group has put up three hotels --- six-star Maxim’s Tower, five-star Marriot Hotel, and Remington --- and the casino/mall complex with plans to put up two to four more hotels, and a convention center/ballroom as succeeding projects.

The planned ballroom is expected to be operational by 2014, while the additional hotels will bring Resorts World’s total rooms to 2,800 in five years. There are 1,200 rooms at present.Of the new hotels, one will be a Megaworld Brand --- Belmont. Resorts World was originally planned to have five hotels.

But Sian said plans are afoot to add a five-star hotel and a four-star hotel.Travellers is set to sign a management contract for the next five-star hotel this week, while another contract will be signed by January next year.Sian said they target to be the largest hotel chain in the Philippines.

Sian said that should all projects push through, the group’s investments could reach $1 billion from the current $650 million.

Sian said Travellers may expand its landholdings in the Resorts World area from the original plan, depending on the need of the business. Resorts World anchors the township project Newport City of Megaworld which has a combined area of 25 hectares, including that of the 10 hectares allocated for Resorts World.

Source - malaya.com.ph