By VG Cabuag
BOULEVARD Holdings Inc. (BHI), the property development arm of the Panlilio family, said it continues to pare down its losses during its fiscal first half ending November 2015, months after it regained control of its Friday’s Boracay island resort.
The company said its losses for the period narrowed to P1.59 million from last year’s P8.46 million, or an 81-percent improvement.
The company said its losses were partly a result of the decline of tourist arrivals during the period.
For its fiscal second quarter alone, the company recorded losses of P3.53 million, lower than last year’s P5.18 million.
Sales for the six-month period dropped 11 percent to P31.45 million, from last year’s P35.24 million.
In a separate disclosure, however, the company said it was able to recover its sales for the seven-month period ending December, which saw its sales rise to P44.19 million from last year’s P33.84 million, a 31-percent increase. In December alone, sales rose 62 percent to P12.74 million.
The company did not provide profits for the seven-month period.
Its main business was contributed by its hotel, leisure and tourism segment, Friday’s Holdings Inc. (FHI), the operator of its Boracay resort. For 13 months, the resort was taken over by the former landowners Mila Yap and Datu Yap due to a land dispute that involved a 1,500-square meter beachfront.
Boulevard regained control of Friday’s Boracay resort in March 2015.
“The management has continued to take actions that will further improve this segment,” it said.
“BHI management believes that FHI hotel operations will gradually improve in the next few months after the hotel rooms and other facilities are rehabilitated, together with the continued patronage of the loyal customers of the resort,” it said in a report.
At the moment, only the Boracay resort is operational, but Boulevard also has another called Friday’s Puerto Galera Inc. in Boquete Island in Puerto Galera in Mindoro. The resort still has to open.
The company said it also resurrected the efforts to organize its planned third resort to be in its property in Cavite. The operator of the resort will be called Friday’s Paniman Inc.
Boulevard also said it is planning to acquire all of Cala Paniman Inc., through a share-sale purchase agreement.
“BHI is purchasing Cala as a vehicle for prospective joint ventures in the resort property sector, with the right partners and compelling synergies,” it said.
In September last year the company said it is selling a 30-percent stake in Friday’s Holdings, appointing Jones Lang LaSalle (JLL) as its market agent to seek interested investors.
“The strategic change in equity structure is in connection with the planned expansion and development of its beach resort to improve its facilities by constructing up to 100 keys to 120 keys to service the increasing 30,000 repeat guests from all over the world who have enjoyed their stay at [Friday’s]” the company said.
The expansion costs are estimated at P600 million.
“The offer to JLL as market advisory agent was approved during the Boulevard Holdings’s special board meeting on August 26, 2015, and was just acknowledged by JLL,” the company said earlier.