Dusit International, one of Thailand’s leading hotel and property development companies, has signed an investment agreement with major Filipino infrastructure holding company Metro Pacific Investments Corporation (MPIC) to jointly develop and manage hospitality and residential properties in the Philippines. This joint investment is subject to approval from the Philippines Competition Commission, expected to be completed in June 2020.
MPIC, a listed company on the Philippines Stock Exchange, is a leading developer of power plants, toll roads, waterworks, light rail, and other infrastructure megaprojects in the Philippines. The investment agreement reflects MPIC’s plans to invest in real estate projects comprising hotels and condominiums, for which it required an experienced and trusted management partner, as well as Dusit’s plans to collaborate with leading industry partners to enhance its own capacity to create continuous and stable business growth.
As per the investment agreement, the structure of which is expected to be in place by December 2020, MPIC’s newest real estate, hospitality, and tourism subsidiary, Metro Vantage Properties, Inc. (MVPI), and Dusit Philippines Corporation, a newly formed, wholly-owned subsidiary of Dusit International, will jointly invest in two companies in the Philippines, namely Metro Dusit Inc. (MDI) and Dusit Hospitality Management Corporation (DHM).
MDI will operate as a developer of real estate projects in the Philippines, particularly hotel and residential condominium projects, while DHM will provide management services in relation to these projects as well as other projects developed in partnership with third-party business operators. DHM will also manage all of Dusit’s existing properties in the Philippines.
The investment partnership, initially worth a total of THB 979.05 million (PHP 1,605.00 million), is in line with Dusit’s three-pronged strategy for sustainable and profitable growth, which includes balance, expansion and diversification. As part of the strategy, Dusit aims to expand its presence in established and emerging markets to achieve a 50-50 balance between domestic and international revenue by 2025.
“While we recognise the novel coronavirus outbreak is currently impacting trade and business throughout Asia, our partnership with MPIC is a long-term investment scheduled to be in place at the end of the year, when we believe business as usual will be resumed,” said Ms Suphajee Suthumpun, Group Chief Executive Officer, Dusit International. “Last year, more than eight million foreign tourists visited the Philippines. Domestic travel is strong too, with 111.4 million domestic tourists recorded in 2018. Both of these figures are only expected to grow.
“By leveraging MPIC’s rich experience, and building on our existing presence in the Philippines, we will be perfectly positioned to tap into this rising demand and expedite our growth. And by delivering unique hospitality experiences inspired by our distinctive brand of Thai-inspired gracious hospitality, we will be perfectly placed to meet the needs of discerning travellers, contribute to the growth of new and existing destinations, and bring long-term value to the communities in which we operate.”
Mr Manuel V. Pangilinan, Chairman, MPIC, said, “Today, we commemorate another milestone for Metro Pacific as we enter the real estate, hospitality, and tourism industry. Through our partnership with Dusit International, a company with over seven decades of experience in delivering Thai-inspired gracious hospitality all over the world, we hope to play a significant role in changing the landscape of this thriving industry through meeting the evolving needs and lifestyles of both local and foreign travellers and contribute to the inclusive and sustainable development of our country.”
Dusit International’s property portfolio now comprises 307 properties (nine owned, 298 managed) operating under six brands across 14 countries. The company has also recently diversified into food business, with strategic investments designed to mitigate risk, expand its customer base, and generate revenue from adjacent lines of commerce.