8990 plans 3-4 leisure projects in next 5 years

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HOUSING developer 8990 Holdings, Inc. is planning to launch three to four leisure properties every year within the next five years.

“We recognize the fact that tourism is really a permanent fixture already in the Philippine landscape and secondly, we want to build up on our recurring income and we feel that the subsidiary we are going to embark in — this company which handle the resorts and hotels — we will be able derive in five years, at least 20%-25% of our gross income from this company,” Mariano D. Martinez, Jr., 8990 Holdings chairman told reporters on the sidelines of the subsidiary’s launch on Nov. 14 at the Green Sun hotel in Makati City.

The newly formed unit 8990 Leisure and Resorts has earmarked P5 billion for the development of three hotel brands: Adama, a five-star luxury family resort; Kura, a luxury hotel; and Argo, an urban hotel.

During the event, the company said it will launch the Adama resort brand in Puerto Princesa, Siargao, Lapu-Lapu City, Baguio, Boracay and Siquijor.

The Argo brand will be introduced in Cebu, Iloilo, Manila, Makati, Alabang, Legazpi and Clark.

Kura, described as a luxury hotel “a notch lower than a Mandarin Oriental,” will be in the same locations as the Argo hotel except in Legazpi and Clark.

Mr. Martinez said the company plans to open the first Argo hotel in December. Located along EDSA, the hotel will offer 250 rooms with sizes ranging from 13 square meters (sq.m.) to 30 sq.m.

8990 is also planning to open the first Adama resort in Siquijor by the first quarter of 2020. The resort will have 22 family villas.

“Some of the locations [we chose] was because we already owned [the land]… but [in the case of] Siargao, it’s because we really like the place,” said Willibaldo J. Uy, president and CEO of 8990 Holdings, Inc., during the same event.

Mr. Uy said the launch of the Adama Siquijor resort will be timed with the opening of the new passenger terminal building of the Siquijor airport.

Mr. Martinez said they will continue to have construction company Megawide Construction Corp., as their preferred builder because of their technology.

Despite creating 8990 Leisure and Resorts, this isn’t the first time 8990 has entered the hospitality business, as it already owns two properties in Boracay and Baguio under the Azalea brand.

The good performance of the Azalea properties gave 8990 the confidence to build its hospitality portfolio, Mr. Martinez said. The Azalea brand will not be folded into 8990 Leisure and Resorts.

“We’re happy with what Azalea was able to give right now, but we’re going to develop already Adama, Kura and Argo,” Mr. Martinez said.

“Azalea started as a timeshare [property] and we’re not going to do timeshare anymore. That’s why we cannot weld the two together,” he added. — Zsarlene B. Chua