FDC consolidates hotel units under Filinvest Hospitality Corp.
GOTIANUN-LED Filinvest Development Corp. (FDC) is consolidating its hotel subsidiaries under Filinvest Hospitality Corp. (FHC) as part of an internal restructuring aimed at streamlining the Filinvest group’s hospitality operations.
In a disclosure to the stock exchange on Tuesday, FDC said its board of directors approved the “plan of merger” and articles of merger” involving several wholly owned subsidiaries of the group’s hospitality business.
“The merger is an internal corporate restructuring initiative intended to streamline the organizational and operational structure of the Filinvest group’s hospitality business,” FDC said.
Firms covered by the merger include Boracay Seascapes, Inc., Dauin Seascapes, Inc., Duawon Seascapes Resort, Inc., Dumaguete Cityscapes, Inc., Gensan Cityscapes, Inc., Mactan Seascapes Services, Inc., Princesa Cityscapes, Inc., and Zamboanga Cityscapes, Inc.
“The transaction only involves the consolidation of unlisted subsidiaries and no new shares of FDC will be issued as a result of the merger,” the company added.
FDC said the transaction is between entities under common control and is not expected to have a financial impact on the consolidated group once completed.
“Given current trends in the hotel sector, such as increasing travel demand post-pandemic, Filinvest could capitalize on this growth trajectory for expansion,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
“Yet, its success will depend on addressing economic headwinds and maintaining a strong brand in a highly competitive market,” he added.
The merger of Filinvest’s hospital companies would enable its hospitality unit to better capitalize on opportunities for growth in the tourism sector, said China Bank Capital Corp. Managing Director Juan Paolo E. Colet.
“The immediate benefits are operational efficiency and potentially improved profitability. The simpler structure also makes it easier to IPO (initial public offering) the hospitality business when the time is right,” he said in a Viber message.
FHC currently manages about 1,800 rooms across seven hotels and plans to add nearly 2,000 more rooms over the next five years.
Its portfolio includes brands such as Quest, Crimson, and Timberland Highlands, and it also operates golf courses within Mimosa Plus Leisure City in Clark, Pampanga.
FDC’s second-quarter attributable net income rose by 44% to P3.78 billion, supported by steady performances from its hospitality, banking, sugar, real estate, and power operations. — Beatriz Marie D. Cruz
