MAX’S Group, Inc. (MGI) has completely divested from its hotel venture as part of efforts to focus on its core restaurant business.
In a statement issued Tuesday, the listed casual dining restaurant operator said it has sold its entire equity interest in Room Ventures Corp. (RVC), the owner and operator of Meranti Hotel in Quezon City.
Meranti Hotel opened in 2015 with a total of 59 rooms. The 12-storey hotel was MGI’s only venture in the hospitality business.
“Our decision to divest from Room Ventures Corp. represents another step in our efforts to make MGI more streamlined, cost effective, and focused on its core business,” MGI President and Chief Executive Officer Robert F. Trota said in a statement.
MGI has been enhancing efficiencies in its operations to improve its profitability. It is also focusing on growing its store network with the addition of 80 stores this year. The company currently has 706 branches, 59 of which are located in North America, the Middle East, and Asia.
The group’s portfolio includes Max’s Restaurant, Yellow Cab Pizza, Pancake House, Krispy Kreme and Jamba Juice, among others.
The company is also constructing a P1-billion manufacturing and distribution center in Cavite to support its future expansion.
MGI grew its net income by 17.6% in the first quarter of 2019, as the company benefited from its strategic shift to franchising and other cost stabilization efforts. Net income reached P146 million in the first three months of the year following a 4.2% rise in revenues to P3.4 billion. — Arra B. Francia
