Waterfront sets aside P250M for renovation

Waterfront Philippines Inc. is spending another P250 million this year for the second phase of its renovation program, aimed at capturing more clients and further cementing its hold as the largest Filipino-owned hotel chain in the country.

The second phase will cover the refurbishment of the guest rooms and suites of Waterfront’s four hotels, namely the Manila Pavillion Hotel and Casino, Cebu City Hotel and Casino, Mactan Airport Hotel and Casino, and the Davao Insular Hotel.

All the guest rooms will be designed by world-class Filipino designers such as Anton Mendoza and Michelle Illustre and will have the latest technological amenities.

The first phase of the renovation program, completed last year, covered restaurants and public areas.

Of the programmed capital budget, P100 million will go to the Manila Pavilion Hotel and Casino to finish close to 150 deluxe rooms and suites.

Last year, the company spent P60 million to renovate 150 superior rooms in Manila Pavillion.

Company officials are optimistic that by the end of the year, all of the Manila Pavilion Hotel’s guest rooms will be fully renovated in time for its formal re-branding as a Waterfront Hotel.

For the firm’s flagship Cebu City Hotel, Waterfront intends to invest another P100 million to give 150 superior rooms, executive suites, deluxe rooms and suites a facelift. The renovation is expected to be finished in time for the ASEAN Summit this December which will be held in Cebu.

Waterfront said the remaining P50 million will be divided equally between the smaller hotels in the group located in Mactan Island and Davao City. All funds for this year‚s renovation program will be sourced internally from operating funds.

With all these renovations in place, Waterfront expects to sustain its gains this year. In 2005, the company reported a net profit of P43 million, a reversal of the P132-million net loss incurred the previous year. Consolidated group revenues increased to P1.8 billion from only P1.4 billion, 44 percent of which came from the group’s flagship hotel, the 562 room Waterfront Cebu City Hotel and Casino.

Manila Pavilion, on the other hand, accounted for 35 percent of revenues while hotels In Mactan and Davao turned in 13 percent and eight percent of revenues, respectively.

WPI is the only hotel chain in the country that has a presence in the key cities of the country. It operates close to 1,500 rooms,employs 1,500 employees, and has over 41,000 square meters of convention and gaming space.

The company also houses the country’s largest gaming facilities.