Boracay will have its reopening on Friday thanks to Boulevard Holdings
June 30, 2022
In order to compete in the premium market of the island resort of Boracay, Boulevard Holdings Inc., which is owned by Panlilio, reopening on Fridays Boracay as a new high-end boutique hotel on the island.
Yesterday, in a letter to shareholders, BHI stated that the company is shooting for September as the opening month for the newest hotel.
“We won’t open up Fridays Boracay if BHI is just going to earn a run-of-the-mill return based on cutthroat room rates between P5,000 and P8,000 a night,” said the owner of the company. “We won’t open up Fridays Boracay.” According to Jose Marcel Panlilio, chairman of BHI, “We are throwing in a lot of capital from the recent sales proceeds to reposition our market segment to within the P12,000 to P20,000 a night clientele.” The recent sales proceeds came from the sale of a property.
According to what he said, this indicates that BHI will be demolishing all fifty of the rooms and spending money on new fittings, furniture, and fixtures. These will include brand new vaults, television sets, marble features, air-conditioning, sprinklers, and new elevators to accommodate customers.
To put it another way, the assumption behind BHI’s decision to spend money is that it will eventually produce a new high-end boutique hotel product that can compete in the Boracay super premium market. As a result of these activities, BHI anticipates a free cash flow of more than P9 million per month, even after taking into account the reinvestment of fixed and working capital, as Panlilio explained so Boracay will have its reopening on Friday.
He stated that the brand new five-star hotel would open at the end of September of this year under the management of BHI.
The company has a positive outlook on the future of Boracay, particularly considering the fact that the tourism industry is on the mend.
Boracay brought in a total of 914,928 domestic visitors and 827,531 tourists from other countries in 2019, resulting in a revenue of P49 billion.
According to BHI, which cited data from the Malay Tourism Office in Aklan, a record number of 150,597 mostly domestic tourists visited the island in March 2022 alone. This is in comparison to the monthly combined number of foreign and domestic visitors for that month in the normal year 2019, which was 145,204.
