AGI eyes higher hotel goals on tourism optimism

ALLIANCE Global Group, Inc. (AGI) is eyeing to increase its hotel room expansion goals, driven by the anticipated growth in Philippine tourism and the privatization of the country’s main airport, the company’s president said.

“Originally, we aim 12,000 (hotel) rooms by 2028, 2029. We’re looking now to launch more hotel projects to support the government’s thrust to promote tourism,” AGI President and Chief Executive Officer Kevin Andrew L. Tan said on the sidelines of the Inside Asian Gaming Summit in Pasay City on Wednesday.

“It’s still about 12,000 (rooms), but we might be adding more because some of the new townships that we will be launching will be very tourism-focused,” he added.

AGI’s initial target is to have 12,000 room keys across 27 properties by 2030.

The conglomerate currently has more than 8,000 room keys across 19 international and homegrown hotel brands such as Belmont, Savoy, Richmonde.

Mr. Tan said the move to revise the hotel room expansion target is also influenced by the privatization of the country’s main airport.

“The privatization of Ninoy Aquino International Airport (NAIA) is a game-changer for the industry. Because of that, we are very encouraged,” Mr. Tan said.

The New NAIA Infrastructure Corp., led by Ramon S. Ang’s San Miguel Corp., will take over the operations and maintenance of the Philippines’ main airport starting Sept. 14.

Meanwhile, Mr. Tan said that AGI supports the move to privatize all state-owned casinos as it would help the growth of the country’s gaming sector.

“We fully support the privatization of all government-operated casinos, as this will promote fairness among industry players and ensure a long-term viability and growth for the gaming sector,” he said.

The Philippine Amusement Gaming Corp. has said that it plans to begin privatizing government-operated casinos by May 2025. Some 45 Casino Filipino properties will be included in the sale.

AGI has a presence in the gaming sector via its travel and leisure subsidiary Travellers International Hotel Group, Inc., the developer and operator of the Newport World Resorts in Pasay City.

The conglomerate also has business interests in spirits manufacturing via Emperador, Inc. as well as quick service restaurants through Golden Arches Development Corp., which operates McDonald’s Philippines.

On Wednesday, AGI shares gained by 0.22% or two centavos to P8.92 per share. — Revin Mikhael D. Ochave