Makati—(PHStocks)—Roxaco Land Corp., the property arm of listed Roxas and Co. Inc. (PSE: RCI), is banking on the promising prospects of the tourism industry as it eyes a bigger market share of the inbound and domestic traveler market.
RCI Chairman and President/CEO Pedro E. Roxas said Roxaco is focused on building new hotels in various categories that will contribute to meeting the Department of Tourism’s estimated requirement of over 20,000 new rooms needed by 2016.
“Roxaco is committed to building hotels in the next few years that will cater to the approximately 35 million local travelers,” Roxas said. He added that in answer to the new room requirement driven by the estimated increase in the number of local travellers, Roxaco started work on the first of the five Go Hotels committed under a joint venture (JV) agreement with Vanguard Hotels of Singapore.
“Recently, we broke ground for the first hotel under this JV. We are moving quickly to build and open our commitment for five ‘Go Hotels’ before the end of 2016,” Roxas said.
He added that the immediate construction work on the JV’s maiden Go Hotel, located near the Ninoy Aquino International Airport (NAIA) along Quirino Avenue in Paranaque City, signifies Roxaco’s commitment to completing the five hotels within the three-year timeframe. Go Hotel is the value hotel brand of the Gokongweis’ Robinsons Land Corp. (PSE: RLC).
“We are eyeing to breaking ground on another hotel property in North Edsa, Quezon City within the year and are in the process of identifying additional sites within the metropolis,” Roxas added, emphasizing that Roxaco’s focus for the “Go Hotel” projects is Metro Manila.
Santiago R. Elizalde, Senior Vice President of Roxaco Land Corporation, said the hotel in Paranaque is estimated to be completed and operational before year-end 2014. “Work on the project has started and we hope to have our first hotel for this brand up and running by December 2014,” Elizalde said.
Under the JV signed in December last year, Roxaco will initially build and operate a minimum of five Go Hotel properties over the next two to three years. Each of the hotels, envisioned to be up by 2016, will have approximately 180 to 200 keys.
“The commitment of Roxaco is that together with our partners we will be building and opening the Go Hotel properties within the committed timeframe. While our focus is Metro Manila, we are also exploring a number of provincial locations,” Elizalde said.