Century Properties Group Inc. on Wednesday said it took in four-star hotel operator Novotel as partner to develop a travel and leisure business as a viable source of P1 billion in recurring income by 2019.
The move is part of a strategy the developer of mostly branded condominium towers has adopted to diversify into commercial leasing, chairman Jose E.B. Antonio said during the company’s annual shareholder’s meeting in Makati City Wednesday.
The partnership with Novotel is being carried out through newly established subsidiary Century Properties Hotel and Leisure Inc., the firm that will carry the once purely real еstatе developer through to its goal of becoming a diversified company.
During the stockholders’ meeting, investors approved to have CPHLI incorporated.
“The company is now evolving from being a top residential developer in Metro Manila to a leading well-diversi?ed real еstatе developer with signi?cant recurring and predictable revenue streams,” Antonio said.
The partnership with Novotel, a member of French group Accor S.A., paves the way for developing a hotel within the Acqua Residences along Pasig River in Mandaluyong City, said Kristina Garcia, Century Properties director for investor relations.
The Novotel site in Acqua Residences is the first in a series, and the company is on the prowl for other locations, CFO Jose Carlo Antonio told reporters on the sidelines of the meeting.
“At this point, we’re still getting the infrastructure. For Novotel, we’re looking at sites but nothing firm yet,” he said.
The hotel business can either be part of an existing development or can be a separate one, he said. “Hotel business is different because it can be done outside and as resort types so it may not be necessarily part of a development.
“If it’s in a city it will be beneficial (within development),” he added.
The Novotel project is part of a 150,000 square meter leasing portfolio Century Properties is aiming for to generate up to P1 billion in recurring revenues, CFO Antonio said.
Source: GMA News Online | July 23, 2014