By Beatriz Marie D. Cruz, reporter
Ayala Land Hospitality (ALH) is on track to open its 276-room Mandarin Oriental Makati this year despite low tourism arrivals, a company official said.
“Mandarin [will open] Certainly this year, it will depend on market conditions,” ALH marketing and commercial head Roshan Nandwani told reporters on the sidelines of an event on Wednesday.
Ayala Land, Inc. The hotel, developed through a partnership between (ALI) and international hospitality company Mandarin Oriental Hotel Group, is located within Ayala Triangle Gardens at the corner of Paseo de Roxas and Makati Avenue.
Ms Nandwani said the upcoming Mandarin Oriental Makati will offer leisure amenities to business and corporate guests.
“Mandarin will be more leisure, but we are also expecting a heavy global business traveller, like big corporates and multinationals,” he said.
The opening of the hotel marks the return of the Mandarin Oriental brand to the Philippine market, following the closure of the original Makati property in 2014.
According to the Immigration Bureau, tourism arrivals are projected to reach 6.48 million in 2025, significantly lower than neighboring Southeast Asian markets such as Malaysia (38.2 million), Thailand (32.9 million), and Vietnam (21.1 million).
Other hotels in ALH's pipeline include the 400-room Canopy by Hilton and the 260-room Moxy Hotel in partnership with Marriott International.
Ms. Nandwani said ALI's Seda hotels, including its properties in Cebu, Iloilo and Bacolod, are performing well.
ALH said it plans to invest $500 million (about P28.63 billion) over the next five years to double its room portfolio to 8,000 by 2030.
The company currently has over 4,000 rooms across domestic brands such as Seda Hotels, El Nido Resorts and Huni Leo, as well as foreign luxury brands such as Raffles and Fairmont.
Meanwhile, according to ALI Chief Financial Officer Jose Eduardo A. Quimpo II, ALI is eyeing two government properties scheduled for auction by the Finance Department's Privatization and Management Office.
These include Food Terminal, Inc. in Taguig City. Part of the complex and includes the Atrium Condominiums in Makati City.
Mr Quimpo said ALI had raised $1 billion in sustainability-linked financing in response to strong demand from investors and customers.
“[Our] The sustainability program is good for us. We're starting to see that there are really solid benefits for us, especially when we do financing,” he said.
The company has a maturity date of about P20 billion this year. ALI posted P21.4 billion in nine-month earnings, with revenues from its leasing and hospitality portfolio contributing P35.1 billion.
At the local stock market on Wednesday, ALI shares fell 0.92% or 20 centavos to close at P21.60.