GOTIANUN-LED Filinvest Development Corp. (FDC) is consolidating its hotel subsidiaries under Filinvest Hospitality Corp. (FHC) as a part of an internal restructuring aimed toward streamlining the Filinvest group’s hospitality operations.
In a disclosure to the stock exchange on Tuesday, FDC said its board of directors approved the “plan of merger” and articles of merger” involving several wholly owned subsidiaries of the group’s hospitality business.
“The merger is an internal corporate restructuring initiative intended to streamline the organizational and operational structure of the Filinvest group’s hospitality business,” FDC said.
Firms covered by the merger include Boracay Seascapes, Inc., Dauin Seascapes, Inc., Duawon Seascapes Resort, Inc., Dumaguete Cityscapes, Inc., Gensan Cityscapes, Inc., Mactan Seascapes Services, Inc., Princesa Cityscapes, Inc., and Zamboanga Cityscapes, Inc.
“The transaction only involves the consolidation of unlisted subsidiaries and no recent shares of FDC will probably be issued consequently of the merger,” the corporate added.
FDC said the transaction is between entities under common control and shouldn’t be expected to have a financial impact on the consolidated group once accomplished.
“Given current trends within the hotel sector, akin to increasing travel demand post-pandemic, Filinvest could capitalize on this growth trajectory for expansion,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
“Yet, its success will rely upon addressing economic headwinds and maintaining a robust brand in a highly competitive market,” he added.
The merger of Filinvest’s hospital firms would enable its hospitality unit to higher capitalize on opportunities for growth within the tourism sector, said China Bank Capital Corp. Managing Director Juan Paolo E. Colet.
“The immediate advantages are operational efficiency and potentially improved profitability. The simpler structure also makes it easier to IPO (initial public offering) the hospitality business when the time is true,” he said in a Viber message.
FHC currently manages about 1,800 rooms across seven hotels and plans so as to add nearly 2,000 more rooms over the following five years.
Its portfolio includes brands akin to Quest, Crimson, and Timberland Highlands, and it also operates golf courses inside Mimosa Plus Leisure City in Clark, Pampanga.
FDC’s second-quarter attributable net income rose by 44% to P3.78 billion, supported by regular performances from its hospitality, banking, sugar, real estate, and power operations. — Beatriz Marie D. Cruz