WPI: Expansion decisions depend on infra availability

CEBU, Philippines - Although Waterfront Philippines Inc. (WPI) expressed optimismon the country's travel and hospitality industry, expansion plans in major tourism destinations in the country would still largely depend on the availability of proper infrastructure in the area.          

This according to WPI chairman Renato B. Magadia on the sidelines of the company’s Annual Stockholders Meeting held over the weekend at the Waterfront Cebu City Hotel and Casino.

According to Magadia, there are already parties who expressed interest to partner with WPI for hotel management deals, such as in Iloilo, Bacolod, and Palawan.

He said WPI owns a property in Palawan, that may be used for the expansion of hotel facility there, but he said what is important is the infrastructure, such as easy transportation access, road network, good toilets, among others, should be taken into serious consideration first by the government.

Meantime, the company is at present focusing on improving its existing facilities, as it is about to complete the three-phase, P300 million renovation program of its flagship hotel, the Waterfront Cebu City Hotel and Casino.

Both Waterfront Airport Hotel and Casino in Mactan, and the Waterfront Insular Hotel in Davao will have its renovation in the next few months, which will incur the company about P100 million of investments.

“The outlook is great but we need to ensure that infrastructure is there,” said Magadia.

In his report to stockholders, WPI president Kenneth Gatchalian reported that the company’s hotel operations generated positive revenue of P1.93 billion, an increase of 3.10 percent from 2009’s P1.87 billion.

Rooms (revenue) contributed 33 percent or P646.70 million. Food and beverage put in a share of 30 percent or P587.64 million.The group average room rate was at P2,051.00.

“These days we are seeing that new solutions we came up with during the 2009 crisis have proven to be timely and valuable to the company as it re-emerges alongside the travel and hospitality industry’s upswing,” Gatchalian said.

While keeping its traditional channels (travel agencies, and corporate accounts) strong, Gatchalian said the company also developed its non-traditional distribution channels aggressively, such as using the Internet to propel revenues through web page bookings, maximizing the potential of its fully-integrated 24/7 Central Reservations office—tapping alternative channels and markets.

“We also went into alternative markets, such as the Middle East, sending representatives to trade shows, developing key linkages and increasing promotion efforts,” said Gatchalian adding that the group continues to express genuine interest in developing these markets, as they comprise the future growth of the industry.

In the Global Distribution System (GDS), a growth rate of 131 percent in room nights and 94 percent in revenues were recorded, as the number of room nights generated in 2010 was 2,106 and revenues were at P5.8 million.

“In the coming months and years ahead, we sincerely believe that Waterfront will continue to cement its hold as the country’s premier first class hotel operator, and eventually evolve into the direction becoming a truly world-class hotel operator,” Gatchalian concluded.

WPI operates five hotel properties across the country, these include its largest property and flagship hotel the Waterfront Cebu City Hotel and Casino, the Waterfront Airport Hotel and Casino (Mactan), Manila Pavilion Hotel, Waterfront Insular Hotel Davao, and G Hotel Manila by Waterfront.