Andrew Tan's AGI remains PH's biggest hotel developer, sets new expansion plans
Alliance Global Group, Inc. (AGI), the Andrew Tan-led premium lifestyle conglomerate, is cementing its leadership as the country’s biggest hotel developer and operator with close to 7,500 room keys spread across 19 international and home-grown operating hotel properties located all over the country.
Its subsidiary, Travelers International Hotel Group, is now operating six (6) international hotel brands, which include five hotels in Pasay City: Marriott Hotel (570 rooms), Hilton Hotel (352 rooms), Sheraton Hotel (350 rooms), Hotel Okura (190 rooms), and Holiday Inn Express (737 rooms), as well as Courtyard by Marriott in Iloilo City (326 rooms).
Its subsidiary Megaworld, on the other hand, is now operating 12 hotel properties across the country under the Megaworld Hotels & Resorts brands, which include the Richmonde Hotel Ortigas in Pasig City (210 rooms), Eastwood Richmonde Hotel in Quezon City (138 rooms), Richmonde Hotel in Iloilo City (149 rooms), Savoy Hotel in Pasay City (684 rooms), Savoy Hotel in Boracay, Aklan (559 rooms), Savoy Hotel Mactan Newtown in Lapu-Lapu City, Cebu (547 rooms), Belmont Hotel in Pasay City (470 rooms), Belmont Hotel in Boracay, Aklan (442 rooms), Belmont Hotel Mactan in Lapu-Lapu City, Cebu (550 rooms), Kingsford Hotel in Parañaque City (529 rooms), Twin Lakes Hotel in Laurel, Batangas near Tagaytay (122 rooms), and Hotel Lucky Chinatown in Binondo, Manila (93 rooms). Global-Estate Resorts, Inc. (GERI), which is part of the Megaworld Group, is also operating Fairways & Bluewater in Boracay, Aklan (250 rooms and villas).
By 2028, the Group will grow its hotel capacity to around 11,000 room keys with the addition of six (6) new big hotels to its portfolio under the Megaworld Hotels & Resorts brands located in various townships throughout the country as it aims to solidify its market dominance in the country’s fast-growing tourism sector being the largest hotel developer and operator in the Philippines.
These new hotels will be located in various cities and towns across the country, particularly in Parañaque City, Laguna, Bacolod City in Negros Occidental, City of San Fernando in Pampanga, Boracay Island in Malay, Aklan, and in San Vicente, Palawan.
“AGI remains to be the biggest player in the Philippine tourism sector, with the largest array of international and home-grown hotels at varying price points to cater to all types of tourists and visitors. With the surge in domestic and international tourism activities, all our hotels have been experiencing high occupancy rates and much-improved average daily room rates,” says Kevin L. Tan, chief executive officer, AGI.
The Philippine tourism industry has been in a strong recovery mode since last year after reeling from the impact of the global health crisis which started three years ago. As the Philippine economy continued to reopen alongside most economies around the globe, the sector saw increased discretionary spending for staycations, travel, leisure and entertainment, and the resurgence in MICE (meetings, incentives, conferences and exhibitions) activities throughout the country.
In 2022, revenues from AGI’s tourism segment reached an historic high of P38.6 billion in 2022, growing by 84% year-on-year and even exceeding pre-pandemic 2019 levels by 10%.
“This segment has grown its importance within the Group and now contributes over 20% of AGI’s business from its share of 15-16% about five years ago,” reveals Tan.