RLC remains bullish on hospitality sector

CEBU, Philippines — Robinsons Group remains bullish on the hospitality sector in the Philippines despite the current challenges in the tourism industry.

“Heading into 2021, we expect to sustain the gradual recovery of our businesses as quarantine restrictions ease and consumer confidence starts to bounce back. We will continue to provide relevant real estate solutions, while prioritizing health and safety”, said Robinsons Land Corporation (RLC) President and CEO, Frederick Go.

The Robinsons Hotels and Resorts Division achieved a quarter-on-quarter revenue growth of 16 percent as Dusit Thani Mactan Cebu re-opened in November and as quarantine business improved in the 4th quarter.

Mainly catering to the essential business sectors and serving the need for temporary accommodation, the Hotels & Resorts Division ended 2020 with revenues of P1.08 billion.

As a group, RLC, exhibited resilience and agility with recorded quarter-on-quarter improvements in key operating indicators across its business units.

The company reported a net income in the 4th quarter of 2020 grew by 20 percent versus Q3 2020 to end at P863 million.

RLC closed the full year of 2020 with EBITDA of P13.68 billion and Net Income of P5.26 billion. Consolidated revenues registered at P25.40 billion, down 17 percent.

The Company’s Development Portfolio, accounting for 49 percent of consolidated revenues, increased by 30 percent to P12.28 billion to partially offset the decline from the Investment Portfolio which ended at Php13.15 billion, 38 percent lower versus the same period last year.

Despite significant reduction in revenues, cash generation remained strong with total cash and cash equivalents ending at P13.78 billion. All business units generated positive EBITDA, displaying the healthy state of the Company’s diversified portfolio. Net gearing ratio remains low at 0.39x. Total assets stood robust at P215.15 billion, and Shareholders’ Equity at P102.85 billion.

“Amid the challenges of 2020, we adopted new ways of working and embraced a mindset of innovation to continue serving our customers. We capitalized on new opportunities for growth and accelerated our digital transformation initiatives to become more agile. As the business gradually recovers from the impact of community quarantines, we will continue to support our employees, business partners, and stakeholders,” Go said.

RLC spent P22.15 billion in capital expenditure in 2020. This was utilized for land acquisitions, development of malls, offices, hotels and warehouse facilities, and construction of residential projects for its local operations.