SM goes into tourism, pours P2.5B for resort dev't in '07

SM Investments Corp., the holding firm of the country's richest man Henry Sy, is expanding into the tourism industry and will pour in roughly P2.5 billion to finance the construction of its first resort in Batangas. As of now, SM Investments' core businesses are retail, mall operations, banking, and property development. "We're committed to the tourism industry," SM Investments president Harley T. Sy said. SM Investments' resort development in Nasugubu Batangas, which has yet to be named, will be launched in March next year. The resort is part of Hamilo Coast, SM Investments' integrated ecotourism project. SM Investments finance officer Jose T. Sio said the P2 billion would go into the development of the resort clubhouse, and various residential developments within the area. All in all, the holding firm has set aside P20 billion for expansion projects in 2007. This already includes a P4 billion-tranche of its buyout of Equitable PCI Bank shareholders. Equitable will be merged with SM banking unit Banco de Oro. SM officials also said the group is refurbishing their Taal Vista Hotel, adding roughly 150 more rooms to its existing 140. Sy said the SM group would be spending P600-P700 million for the renovation. Taal Vista Hotel, although owned by the SM group, is managed by local hotel operator Fuego Hotels. Sy said that another sign of their bullishness on the tourism industry would be their plan to build at least two hotels to support their SMX Convention Center in their development along Manila Bay, dubbed SM Bay City. SM Investments is currently looking for a foreign partner to help them build and manage the hotels. "We're looking a foreign partner for this because this is another level already," Sy said. He said they expect to break ground on the first hotel before the end of 2007. - GMANews.TV