Filinvest Development Corporation is budgeting P45 billion for capital expenditures in 2018, mainly for the expansion of its property business as well as potential investments. “After reaching a record net income of P10.3 billion in 2017, we plan to build on our strengths by investing in new projects and expanding current projects within the group,” said FDC Chairman Jonathan T. Gotianun.
More than three-fourths of the capex will be allocated to property segment while P10 billion will be reserved for other potential investments.
Within the property segment, P5 billion will be allocated to the hotel group. This will allow the group to further expand its hospitality portfolio.
FDC currently has 1,591 rooms run by FDC subsidiary Filinvest Hospitality Corporation (FHC) and managed by Chroma Hospitality, Inc., a joint venture with Archipelago International.
Opening in 2018, the newest property in the hotel’s portfolio is the Crimson Resort and Spa Boracay, which adds another 192 rooms.
Including two additional properties in Tagaytay and San Mateo that are opening in 2018, FHC now has eight new hotels in the planning and construction stages for a total of 1,700 additional rooms.
FDC’s financial services subsidiary EastWest Bank (EW) recently increased its authorized capital stock to P50 billion in preparation for its planned stock rights offering.
EW needs the additional capital to pursue its growth plans. FDC will participate in the EW’s stock right offering scheduled in the second half of 2018.