Megaworld earnings up 13% in 6 months

MANILA, Philippines — Andrew Tan’s Megaworld Corp. grew its net income by 13 percent to P7.25 billion in the first half.

The increase was driven by strong results from its different businesses, with the hotel segment posting record growth.

Megaworld said hotel  operations grew 10 percent to P715 million following the opening of Savoy Hotel Manila in Newport City, which added 684 hotel rooms to its total inventory of 1,744 rooms as of end-2017.

By the end of 2018, Megaworld will open two new hotels, the 126-room Twin Lakes Hotel in Tagaytay and the 94-room Lucky Chinatown Hotel in Binondo, Manila, bringing its total hotel inventory to 2,648 rooms by yearend.

 The new hotels will support the Duterte administration’s tourism program, said Francis Canuto, Megaworld senior vice president and treasurer. 

“We are ready to supply more rooms to support the government’s goal of 10 million tourist arrivals by 2020. We are in key tourism areas like Cebu, Boracay and Tagaytay,” he said. 

The company’s rental business from office, malls and commercial space leasing grew by 17 percent to P6.79 billion.

Megaworld’s office space inventory stood at 1.01 million square meters with more office towers in the pipeline.

The company’s residential business saw a nine percent growth year-on-year to P18.22 billion.

New residential projects launched during the first half include Park McKinley West in Fort Bonifacio, Chelsea Parkplace in Capital Town Pampanga,  Bayshore Residential Resorts Phase 2 and Gentry Manor in Westside City, Tulip Gardens in Southwoods City, and The Fifth in Ortigas.

 “Megaworld’s consistent growth across all business segments is a clear indicator of where the company is going, and we are continuously focusing on giving better value to our customers through our programs on innovation and design, digital technology, smart mobility and connectivity as well as environmental sustainability,” Canuto said.

To date, Megaworld has built over 660 residential developments, 54 office towers and 17 lifestyle malls across its 23 masterplanned developments, covering more than 4,000 hectares of land around the country.