Ayala Land invests $500m for hotel expansion

The capital expenditure will cover Makati, Cebu, and Clark.

Ayala Land, Inc. (ALI) has allotted more than $500m to fund its hotel expansion as it seeks to double its 4,000-room inventory by 2030.

The publicly listed Philippine property giant announced the plan as it relaunched its hotel and resort arm Ayala Land Hospitality (ALH), which manages brands such as Seda Hotels, El Nido Resorts, and Huni Lio.

“We feel that just Seda and El Nido Resorts alone won't cover all of the opportunities in the tourism market today, so part of what we're launching are new brands and products that will serve the markets that we feel are underserved today,” Mariana Zobel de Ayala, senior vice president for leasing and hospitality at Ayala Land, told Real Estate Asia on the sidelines of the launch in March.

The $500m investment will be used for both existing and new brands and will be financed by debt and equity in the next five years.

Ayala Land would focus on cities where it already has a presence, including Makati, and areas with direct international flights such as Clark and Cebu, Mariana told a news briefing in Manila.

She noted that many of their new projects appeal to the leisure traveller or the longer-staying, higher-spending foreign tourists.

To support the expansion, George Aquino, president and CEO of ALH, said the company would align its projects with major government infrastructure developments to ensure accessibility and long-term viability.

Another major factor in ALH’s expansion strategy is its people.

“Any developer can build a beautiful hotel, but it comes down to the people who are serving our guests, the people who are leading our teams, and that is where our main focus is going to be, making sure we have the talent,” he told Real Estate Asia during the launch.

Paloma Urquijo Zobel de Ayala, creative officer at ALH, said what differentiates the company’s developments is “how they synthesise what it truly means to be Filipino.”

The company tapped local artisans and craftsmen to upgrade Lagen Island Resort in El Nido, Palawan province. The resort is set to reopen in the third quarter after renovation started in June 2024.

The property will have an arrival hall inspired by a traditional fishing boat, and a spa and fitness centre with Filipino wood carvings and patterns.

Mariana said they expect a significant jump in ALH revenue through increased room rates after the renovation. For Lagen and Seda alone, fees are expected to increase by about 20% and 80%, respectively.

ALH would look at opportunities in its parent company’s portfolio, including club management and residential property development, Aquino said.