CEBU Landmasters, Inc. (CLI) is planning to start construction of its first hotel in Bacolod City by the fourth quarter of the year, which is expected to bring its total hotel portfolio to 969 rooms.
In a disclosure to the stock exchange, the property developer said CLI Bacolod Hotels, Inc. — its joint venture firm with Capitaine, Inc. — signed on Tuesday a service management deal with international serviced residences operator The Ascott Limited for the development of Citadines Bacolod.
CLI President and Chief Executive Officer Jose R. Soberano III said the company is seeing a lot of opportunities in Bacolod, banking on tourism and the information technology-business process management (IT-BPM) industry for its growth.
“There is so much potential to cater not only to the tourism industry but also the M.I.C.E. (Meetings, Incentives, Conventions and Exhibits) market in Bacolod,” Mr. Soberano said.
CLI aims to open the Citadines Bacolod by 2021. It will have 200 serviced residential units, ranging from 25 to 60 square meters (sq.m.) each.
Citadines Bacolod will rise on a 4,501-sq.m. lot along Lacson Street, fronting MesaVirre Garden Residences, CLI’s P1.5-billion residential condominium project.
The Citadines brand looks to cater to young professionals, business and leisure travelers. Among the hotel’s amenities are a swimming pool, gym, and game room.
Mr. Soberano added business travelers linked to the IT-BPM industry will also boost hotel occupancy.
This is the fourth time CLI has partnered with The Ascott, following Citadines Cebu City, Citadines Paragon Davao, and lyf Cebu City.
“Cebu Landmasters is very credible. With its track record and deep knowledge of the VisMin market, we are happy to partner with them again for our fourth service residence project, and our first in Bacolod City,” CLI quoted The Ascott Regional General Manager for the Philippines and Thailand Arthur G. Gindap as saying in a statement.
Aside from The Ascott, CLI also has a partnership with the Radisson Hotel Group to build a Radisson Red hotel in Mandaue City.
Citadines Bacolod is part of the 20 projects CLI has lined up for 2018, for a target of 66 projects in different stages of construction by the end of the year. With this, the company has committed to spend P8.8 billion in capital expenditures.
CLI realized a 17% profit growth to P498.7 million during the first quarter of 2018, following a 14% jump in revenues to P1.26 billion. The company targets to book a net income of P1.7 billion for the year, and alongside revenues of P5.3 billion.
Shares in CLI were unchanged at P4.67 apiece at the stock exchange on Tuesday. — Arra B. Francia