Corporate News

Discovery World to pour P730M in El Nido resort

Posted on April 14, 2016

DISCOVERY WORLD Corp. of the Tiu family started on Tuesday the development of its third tourism estate to capitalize on the country’s growing tourism industry.

The upscale resort developer is investing around P730 million to develop Vanilla Beach El Nido, a 120-key hotel in Palawan with 3,400 square meters of retail space for lease and a beach club, Discovery World Chief Finance Officer Anna May B. Nieva said in a telephone interview yesterday.

Discovery World is in the process of securing financing for the project, Ms. Nieva said.

Vanilla Beach El Nido is targeted to be completed towards the end of 2017, the company said in a disclosure to the stock exchange yesterday. The succeeding phases will focus on the expansion of the commercial area for lease.

The resort is owned and operated by Cay Islands Corp., a subsidiary of the listed company.

“With the development of Vanilla Beach El Nido, Discovery World aims to ride on the booming tourism industry,” Ms. Nieva said.

Vanilla Beach El Nido is Discovery World’s third resort in the country after Discovery Shores Boracay in Aklan and Club Paradise in Coron, Palawan.

Through its various subsidiaries, Discovery World is preparing other properties for future development. It owns a 24-hectare beachfront property in San Vicente, Palawan; another 5-ha property in El Nido and 5.7-ha property in La Trinidad, Benguet.

Discovery World, which made its stock market debut in 2013 with a P551-million initial public offering, is engaged in the hotel and resort business. It also owns Discovery Fleet Corp., which operates two cruise boats.

Discovery World halved its net profit to P24.43 million in the nine months through September from P48.04 million in the previous year on higher operating expenses and finance costs.

Shares in Discovery World added 10 centavos or 5.56% to close at P1.90 each on Wednesday. -- Krista Angela M. Montealegre