The Gotianun-led Filinvest Development Corp. (FDC) on Monday said it has bought Thai firm Choeng Mon Real Estate Co. Ltd. for its expansion into Thailand, which has an economy double the size of the Philippines.
In its disclosure, FDC said it signed a share purchase agreement to buy all of the issued shares of the Thai firm, which is currently developing an international five-star luxury quality resort.
The company did not provide other details.
“The resort shall be operated by FDC’s subsidiary under the Crimson brand. Closing and completion of the transaction is subject to the satisfaction of certain conditions precedent and completion requirements by each of the parties,” it said in its disclosure.
FDC said in its web site that it owns a portfolio of hotels managed by Chroma Hospitality, a joint venture with Archipelago International of Singapore.
The company caters to various segments of the hospitality sector through the luxury brand Crimson Hotels and Resorts, the mid-market brand Quest Hotels, and Grafik—a lifestyle brand where integrated spaces merge style with practicality catering to the millennials’ preference for a customized experience.
The five hotels currently operated by Chroma Hospitality are: 290-key Crimson Resort and Spa in Mactan, Cebu; 345-key Crimson Hotel in Filinvest City, Manila; 192-key Crimson Resort and Spa at Station Zero in Boracay; 427-key Quest Hotel and Conference Center in Cebu City; and 303-key Quest Plus in Filinvest Mimosa+, Clark, Pampanga.
The company’s foray into Thailand is the first time that the Gotianun family has expanded its business overseas.
Choeng Mon Real Estate was registered in Thailand in October 2015 for the purpose of business investment and real-estate development.
Crimson Hotels and Resorts is the homegrown brand of the Gotianun group, which currently has three branches in the Philippines, Mactan in Cebu, Boracay and in Alabang, Muntinlupa.
FDC’s attributable net income for the nine months of the year ending September grew 16 percent to P9 billion, from the P7.7 billion, mainly on the strong performance of its property development, banking and power businesses.
Revenues grew 16 percent to P55.26 billion, from P47.38 billion last year.
“FDC believes that property, composed of the real estate and hospitality segments, continues to be a solid source of growth for the group, contributing more than half of FDC’s bottom line,” it said.
FDC’s banking arm East West Banking Corp. delivered a net income contribution to the group of P4.4 billion for the first nine months of 2019, growing by 44 percent. Power subsidiary, FDC Utilities Inc., contributed P2 billion in net income, rising by 9 percent from last year.