Alliance Global investing P96.7b
Alliance Global Group Inc., the holding company of tycoon Andrew Tan, is investing P96.7 billion this year to expand its property, liquor, resort and food businesses.
AGI executive director Kingson Sian said during the annual stockholders meeting the conglomerate allocated P65 billion in capital expenditures for property arm Megaworld Corp., P21 billion for liquor company Emperador Inc., P8 billion for casino and resort developer Travellers International Hotel Group Inc. and P2.7 billion for quick service restaurant unit Golden Arches Development Corp.
Sian said the conglomerate would primarily use internal fund to finance this year’s capital expenditures.
Sian said Megaworld’s reservation sales were on track to hit P90 billion to P95 billion in reservation sales this year, up from P85 billion posted in 2014.
“We are on slightly ahead of the reservation sales target because first-half reservation sales stood at P48 billion,” Sian said.
Travellers aims to have 5,000 hotel rooms by 2020, including 4,200 at Resorts World Manila and 800 in the planned Westside City Resorts World at Pagcor Entertainment City in Parañaque.
Sian said phase 1 of Westside City Resorts World was expected to be completed by 2018 to 2019.
Sian said Emperador would launch next month Andy Player whiskey, a personal blend of Tan, after a 25 year-absence in the Philippine market. A 500-ml bottle of Andy Player will be priced at P150.
Golden Arches, the local franchise holder of fast-food chain McDonalds, will likely miss the 500 stores target by the end of 2015 due to construction delays, according to Sian.
“We will likely end the year with about 480 stores, but will achieve the 500 stores target by the first half of 2016,” Sian said. As of end June 2015, there were 464 McDonalds stores nationwide.
About 60 percent of McDonalds outlets are company-owned while the remaining 40 percent are franchise stores.
Tan said he remained confident about the prospects for the company amid challenges.
“We look forward with utmost confidence and optimism that the years ahead will bring us to a new level of growth on a global scale. We are leveraging on a significant measure of success to pursue greater goals, made more reassuring by a highly consumer-centric portfolio, contributing to the country’s economy,” Tan said.