Alliance Global Group Inc., the holding company of tycoon Andrew Tan, said Thursday it will allocate P60 billion in capital expenditures this year, up 33 percent from P45 billion it spent last year to support the expansion of its real estate business.
AGI chief executive Kevin Tan said during the annual shareholders’ meeting property unit Megaworld Corp. would spend P50 billion with the launch of four township projects covering 500 hectares in Metro Manila, Calabarzon and Mindanao.
Megaworld would also launch 14 other projects with a total sales value of P30 billion, he said.
Hospitality unit Travellers International Holdings Inc. earmarked P4 billion in capital expenditures this year.
Tan expressed hope that Travellers would return to profitability this year amid easing quarantine restriction and increasing mobility which would boost its gaming and non-gaming revenues.
He said the group plans to add 2,600 hotel rooms from 2022 to 2023. AGI now has 6,900 hotel rooms across its portfolio.
“The tourism sector is a renewed bright spot as it rebounds from the standstill brought about by the pandemic. We continue to bet big on its recovery,” Tan said.
Liquor firm Emperador Inc., which is aggressively expanding its whisky and brandy businesses and its presence overseas, will spend P3 billion this year.
AGI earmarked the remaining P3 billion for the store rollout of Golden Arches Development Corp., which is the local franchise holder of fast-food chain McDonald’s.
GADC plans to open 45 new stores in 2022.
Tan said AGI was expected to sustain its growth momentum this year as the domestic economy continues to recover from the pandemic.
He said all business units, except for Emperador, were running at 70 percent to 80 percent of pre-pandemic performance.
“We believe the further reopening of the economy could provide an added boost in mobility and consumer spending, bringing our lifestyle malls, quick service restaurants and gaming operations to hit pre pandemic levels. Such improved mobility should also continue to support our real estate sales, liquor revenues and demand for office space,” Tan said.
Share price of AGI declined 3.7 percent Thursday to P9.43.