CEBU LANDMASTERS, Inc. (CLI) is boosting its presence in the hospitality sector with the development of its third project in partnership with international serviced residences operator The Ascott Limited.
The Cebu-based property developer said on Wednesday it inked its third serviced residence management agreement with Ascott for “lyf Cebu City.” The 153-room serviced residence is under “lyf,” Ascott’s brand that targets millennial travelers.
“The growth potential offered by tourism is very promising and we are happy to be teaming up for the third time with The Ascott Limited in this project set to introduce new industry benchmarks,” CLI Chairman and CEO Jose R. Soberano III was quoted as saying in a statement.
Lyf Cebu City will be the third tower in CLI’s Base Line Center. It will offer rooms sized 16 to 60 square meters, and have communal spaces and co-working areas, which CLI said would fit the needs of technopreneurs, those working in start-ups, and people from the media and fashion industry.
Prior to lyf Cebu City, CLI has already partnered with Ascott for two developments under the Citadines brand. The company targets to complete the 180-room Citadines Cebu City by 2018, while Citadines Riverside Davao offering 250 rooms is slated for completion in 2021.
“The Ascott Limited partners with Cebu Landmasters for its credibility. They have a deep understanding and knowledge of the real estate industry and a strong foothold in the Visayas and Mindanao. Partnering with CLI strengthens our brand,” Ascott General Manager Arthur G. Gindap said in a statement.
Mr. Soberano, meanwhile, noted the company is ramping up development in the hospitality sector to take advantage of the growing number of tourists in the Visayas and Mindanao regions. CLI cited a study by the Department of Tourism stating that Cebu-Mactan will have a room gap of 14,931 by 2022.
CLI said the completion of the Mactan Cebu International Airport will further increase tourist arrivals in Cebu, which already saw a 25% increase in tourist arrivals in 2016 to 4.17 million visitors.
“Our hotel properties will maximize opportunities offered by the country’s growing tourism momentum while ensuring the full development of our mixed-use projects in strategic VisMin areas,” Mr. Soberano said.
This new development will help support CLI’s growth plans in the future. In 2018, the company has already projected a net income of P1.7 billion, 42% higher than its P1.2-billion income target for 2017.
In the nine months ending September, CLI managed to grow earnings by 77% to P959 million, riding on the robust sales of residential properties.
Shares in CLI were up by three centavos or 0.63% to close at P4.79 each at the Philippine Stock Exchange on Wednesday. — Arra B. Francia