Alliance Global Group Inc., the diversified investment holding company of tycoon Andrew Tan, on Monday moved to cement its role as the Philippines’ biggest hotel developer and operator, with room keys expected to increase by 47 percent to 11,000 within five years.
The move is aimed at taking advantage of the recovery from the pandemic and future growth of the tourism industry, which in 2019 already contributed 12.9 to the economy. Even with the gains in 2022, the tourism industry only added 6.2 percent to the economy.
AGI already operates 7,500 room keys across 19 international and home-grown brands across the country under Megaworld and Travelers International Hotel Group . By 2028, it will have added six new big hotels under the portfolio of Hotels & Resorts brans located in various townships the
The company said that by opening more hotels, particularly in major tourist destinations, it expects “to solidify its market dominance in the country’s fast-growing tourism sector.”
AGI budgeted P70 billion for capital expenditures this year, with most going to property unit Megaworld which has set aside P50 billion for capex to bankroll its aggressive plan to expand its office, mall and hotel business segments.
The new hotels will be located in various cities and towns across the country, particularly in Parañaque City, Laguna, Bacolod City in Negros Occidental, City of San Fernando in Pampanga, Boracay Island in Malay, Aklan, and in San Vicente, Palawan.
“AGI remains to be the biggest player in the Philippine tourism sector, with the largest array of international and home-grown hotels at varying price points to cater to all types of tourists and visitors. With the surge in domestic and international tourism activities, all our hotels have been experiencing high occupancy rates and much improved average daily room rates,” said Kevin Tan, chief executive officer of AGI.
