The Discovery Group is adopting a “wait and see” stance on its expansion plans following the onset of a global recession.
According to hotelier Annabella Santos-Wisniewski who heads HSAI Raintree, a hotel management firm which is a partnership between the Tiu family and Wisniewski, the tourism and leisure industry is expecting a contraction next year as a consequence of the global recession.
In an interview with The STAR, Wisniewski, expressed “cautious optimism” that the Discovery Group would not be severely affected by the expected slowdown in the tourism and leisure industry as the hotel and resort group concentrates on the high-end market.
Wisniewski said the Discovery Group may hold off on its earlier announced expansion plans for additional hotels even though work on the Discovery Primea property along Ayala Avenue is proceeding.
He said the Tiu Family continues to negotiate with the banks for a loan of P3 billion to P5 billion.
“We’re surprised that while foreign banks have tightened credit, local banks are still accommodating,” Wisniewski said.
Wisniewski said the Discovery Group continues to remain on the lookout for “opportunistic investments.”
But with the expected recession, Wisniewski said the Discovery Group would “concentrate on internal matters.”
The Discovery Group had earlier announced plans of putting up a hotel in China next year aside from redeveloping the former Gilarmi Apartments into a high-end residential project to be known as Discovery Primea.
The group was also eyeing additional resort/hotel developments in Palawan and Bohol.
The Gilarmi Apartments was acquired by the Tiu family from the family of widowed former beauty queen Armi Kuusela-Hilario in 1990.
The Tiu family also owns the Mansion Group of hotels which include the Dakota Mansion in Malate, the Amorsolo Mansion, Mabini Mansion and Boulevard Mansion.