Urban developer Megaworld intends to spend 8.5 billion Philippine pesos ($177 million) to build hotels in vacation destinations and invest 180 billion pesos over the next decade in rural areas, taking advantage of President Rodrigo Duterte’s economic priorities.
The real estate giant plans to construct three hotels under its new Savoy brand by 2018, information presented to the Philippine Stock Exchange shows. Two of them will be on the popular resort islands of Mactan and Boracay. These hotels will feature 500-700 rooms each and cost a total of 5 billion pesos.
Megaworld also will open two hotels under the Belmont brand in resort areas by 2019 at a cost of 3.5 billion pesos.
The Philippine company’s plans fit with the government’s commitment to develop tourism into an economic growth engine.
Megaworld, an anchor unit of conglomerate Alliance Global Group, has engaged in development in Manila with expertise in office buildings and facilities for business process outsourcing companies, including call centers. Now, along with the hotel business, the company is taking the urban development operations beyond the capital city.
After focusing on development in Manila for 27 years, Megaworld will broaden the business to rural areas, which boast growth potential, said Kingson Sian, a company director.
Duterte’s government is promoting economic growth outside of Manila. Duterte, the first Philippine leader from Mindanao island and the former long-serving mayor of the island’s city of Davao, has called for closing the gap between the capital and regional cities. He has drawn key policies centered on industrializing and bringing foreign businesses to areas outside the capital.
These areas are attracting business process outsourcing companies seeking lower wages. Tapping into this trend, Megaworld plans to invest 180 billion pesos to develop integrated townships, which include office buildings, commercial facilities and residences.
Source and image: Nikkei