Rockwell Land Inc., the property unit of the Lopez Group, will spend P7 billion to develop hotel and leisure projects as it remains upbeat about the growth of the tourism industry in the country.
Rockwell Land president and chief executive Nestor Padilla during the annual stockholders’ meeting announced the company’s first resort development called Punta Engano in Mactan, Cebu.
Punta Engano is 300-room resort with private villas and a mix of retail developments. Capital spending is estimated to reach between P3 billion and P4 billion.
“The strong interest from our roster of investors and partners to roll out new ventures outside Metro Manila is evidence of not only the strength of Rockwell’s hotel and leisure business but also reflects our collective vision to develop prime tourist locations like Mactan Island as the country’s experiences a tourism renaissance,” Padilla said.
Construction is slated by the third quarter of 2017, with completion set by 2021.
Rockwell Land is also spending another P3 billion to build the 280-room Aruga Hotel in Makati.
Aruga Hotel, which will be built on top of the expansion phase of the Rockwell Power Plant mall, is the company’s first urban themed-hotel. It is scheduled for completion by 2019.
Rockwell Land is managing over 300 hotel keys under the Aruga and Edades serviced-apartment brands.
On the office development business, Rockwell Land plans to add 54,000 square meters of leasable space by the end of 2017 from the current 100,000 sq. m.
The new office spaces will come from two projects that the company is building in Santolan, San Juan City and Sheridan St. in Mandaluyong.
These projects are expected to boost the company’s recurring income over the next few years.
Rockwell Land is also expanding its residential portfolio with the launching of its first residential township development in Lipa, Batangas.
Phase one of this project involves offering 300 to 400 housing units targeting the affordable and middle income markets.
Two other residential projects are slated for launching this month,
Rockwell Land plans to increase its net income and revenues by double digits this year.
It will spend as much as P12 billion in capital expenditures in 2016 from the actual spending of P7.4 billion in 2015.