Listed company Roxas & Company Inc said it will spend P1.5 billion to finance real estate projects in the next two years.
RCI chairman Pedro Roxas said in an interview at the sidelines of the annual stockholders’ meeting the group was beefing up its real estate portfolio to balance revenue stream.
The group’s sugar business under Roxas Holdings Inc. accounts for 70 percent of RCI’s income, with 30 percent coming from real estate.
“However, we hope to have a more balanced revenue stream in the next two years as we focus more on hotels, mixed-use establishments and other projects in and outside of Metro Manila through our real estate subsidiary, Roxaco Land Corp.,” Roxas said.
Under the plan, RCI will spend up to P350 million to develop five Go Hotels in Metro Manila over the next two years. Most of these hotels are expected to be completed by the first quarter of 2016.
The Go-Hotels are located along Quirino Avenue in Parañaque City near the Ninoy Aquino International Airport; North Edsa, Timog Circle and Cubao in Quezon City; and in Malate, Manila.
The 900-room, five-hotel project is being undertaken by Roxaco-Vanguard Hotels Corp., a joint venture between Roxaco and Singapore-based Vanguard Hotels Corp.
The first Go Hotel in Parañaque City is scheduled to open by June this year.
Aside from Go-Hotels project, RCI also plans to put up a chain of businessman’s hotel in key cities in the country. This will be done through joint venture partnerships.
RCI said it was also on the look out for mixed-use developments.
“We want to replicate our concept for Anya Resort & Residences in Tagaytay City so we are looking at joint ventures for a couple of sites outside Manila as we recognise the growing market for mixed-use establishments in Cebu, Bacolod and Davao,” Roxas said.