Waterfront mulls expanding chain

Publicly listed Waterfront Philippines Inc. (WPI) is going to expand its network chain in the next few years, following the approval of the company’s board of directors to acquire more hotel, resort and leisure properties.

In the Visayas, WPI is looking closely at making presence in Bohol, to complement its two properties here, the Waterfront Cebu City Hotel and Casino and the Waterfront Airport Hotel and Casino.

“We are expanding our business through acquiring hotels that will enhance our revenue stream,” said WPI chairman Renato B. Magadia.

Although there are initial talks of acquiring or purchasing good properties in other areas in Luzon and Visayas, nothing has come to a formal negotiation yet, aside from the ongoing deal to buy the 175-hectare Mimosa Leisure Estate in Clark.

WPI president Sherwin T. Gatchalian said that the company is open to varied options of acquisition deals, may it be acquiring existing hotel or resort facility, or buying a property and construct a hotel or resort project.

Aside from Luzon, WPI is also actively looking at setting a resort or hotel business in key tourism destinations, like Palawan.

Gatchalian however refused to divulge the company’s timetable to set up a resort business either in Bohol or Palawan, he said it will depend on the success of initial business discussions.

WPI’s major shareholder, the Wellex Group, will have to fund the future property or hotel acquisitions to expand the company’s chain network, in exchange of WPI shares. This means that WPI will not shell out investment money for any acquisition as it will be funded by the Wellex Group.

During the WPI’s stockholders meeting held over the weekend, Gatchalian reported the company posted a 791.6 percent increase in overall net performance in 2007 at P162.65 million over the P18.24 million in 2006.

Hotel operations continue to be the main driver of the company’s growth. At the close of 2007, it generated revenue totaling to almost P1.89 billion, accounting for 96 percent of the company’s total income.

Of the total revenues, Waterfront Cebu City Hotel and Casino, its flagship property, accounts for 39 percent with P732.4 million, while Manila Pavilion Hotel contributed 37 percent of the company’s revenue with P706.19 million.

Waterfront Airport Hotel and Casino generated P253.21 million or 13 percent contribution for the year, while Waterfront Insular Hotel in Davao puts in P50.22 million to the company’s over-all revenue.