Filinvest Development Corp. (FDC) of the Gotianun family is bullish on the sustained growth of its three core businesses of banking, power and real estate, with hospitality expected to become a strong fourth leg for the conglomerate in the coming years.
“The conglomerate is composed of three large legs in terms of earnings contribution. The bank, the power and then real estate,” FDC chief finance officer Ven Christian Guce said.
“From those three legs, from those core businesses, we actually have in itself the key drivers for growth for the group that can sustain and deliver the at least 20 percent growth that we mention in terms of ambition,” he said.
FDC is aiming to deliver at least 20 percent average annual growth in earnings for the next five years.
Guce said that EastWest Bank is in a very unique position with a very long runway of growth in terms of the market as well as in terms of further improvements on return on equity.
He said the group is also aspiring to boost its power portfolio by threefold in the next seven to eight years, of which 50 percent is going to be renewables by 2033.
“A threefold growth is going to be a source of the growth of the conglomerate,” Guce said.
For real estate, the group’s regional strategy has put it in a position to grow despite the residential challenges in Metro Manila.
“Our real estate business is kind of low-key but we’ve been expanding into the regions, in fact, much earlier than our larger peers. We’ve always had a strong presence in Visayas and Mindanao as well as large developments in Luzon,” Guce said.
Guce said that while the group’s hospitality business only contributes to five percent of earnings at present, it is seen to become a strong driver of growth in the coming years as the group embarks on further expansion of its portfolio.
He said that FDC’s hospitality portfolio has a strong broad-based growth in terms of its segments.
“We’re now starting to reap the benefits of having a strong brand by signing up hotel management services as well as the use of our brands with third party developers,” Guce said.
“So on hospitality, other than a growth coming from expansion in terms of number of keys from our own developments, we anticipate there is going to be growth coming as well from service management or use of the brand revenues such as royalties in an asset-light model,” he said.
Filinvest Hospitality Corp., FDC’s hospitality arm, has set a goal of adding 2,000 additional keys in its portfolio over the next five years, with key tourist destinations such as Baguio, Clark and Bohol identified as sites for its expansion.
The company is targeting to commence construction later this year of Crimson Clark Hotel, a five-star hotel within the Mimosa Leisure Estate, offering over 300 rooms.
It also intends to launch by the end of the year Grafik Baguio, a 256-room full-service hotel being constructed in accordance with the EDGE Green Building Program of the International Finance Corp.
Filinvest Hospitality is also undertaking a lot of renovations across its properties on top of its new projects.
Its roster of hotels includes Crimson Resort and Spa Boracay, Crimson Resort and Spa Mactan, Crimson Hotel Filinvest City Manila, The Quest Hotels & Resorts in Cebu, Clark Pampanga and Tagaytay.
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