By Justine Irish D. Tabile, Reporter
THE interim management contract awarded to Metro Pacific Investment Corp. (MPIC) unit Landco Pacific Corp. for Camp John Hay is a play on the leisure segment, where interest is currently high, analysts said.
“The MVP group has been pushing to boost its property and hospitality business through Landco Pacific Corp., and this potential Baguio deal looks like a good opportunity for expansion,” China Bank Capital Corp. Managing Director Juan Paolo E. Colet said via Viber, referring to the group run by MPIC Chairman and President Manuel V. Pangilinan (MVP).
“MVP clearly sees the growth potential of the tourism industry. We expect that he will turn Camp John Hay into a sustainable world-class destination,” he added.
Last week, the Bases Conversion and Development Authority named Landco the interim manager of the Manor and Forest Lodge at Camp John Hay.
Under the agreement, Landco will operate the two facilities for one year, extendable to two.
Asked to comment, Colliers Research Director Joey Roi H. Bondoc described Landco’s decision as a “strategic move.”
“Now is an opportune time to invest in leisure-themed developments, and Baguio is definitely one of the ideal locations that developers should further explore,” he said via Viber.
“Landco has always been known for these developments, and the focus on Baguio complements the launch of the Spinnaker, a beachside property in Batangas,” he added.
The Department of Tourism reported that visitors spending at least a night in Baguio City numbered 1.31 million in 2023, accounting for 2.37% of all overnight travelers during the period.
“I think the interim management of the Manor is a good opportunity for Landco to assess further expansion into similar developments that are resort- or leisure-themed developments, as these projects cater to a thriving domestic and foreign tourism market,” Mr. Bondoc said.
According to Mr. Bondoc, leisure-oriented developments in the Philippines are being buoyed by the tourism rebound.
“This kind of project is popular. One developer’s project in Makati had a slow take-up, but its condotel in Batangas is sold out,” he said.
“These projects also benefit from the rebound of tourism. Note that foreign ownership for vertical development is allowed up to 40%,” he added.
Colliers reported that The Spinnaker, Pico Terraces, and Solmera Coast in Batangas have sold over 50% of launched units, while Escana in Boracay has sold over 70%.
Launched units at Villas at Aruga of Cebu and the Dusit Thani Residences in Davao were sold out.
Meanwhile, Alpine Villas-Basel in Cavite had a take-up rate of 43%, and The Crown Residences and Bridgeport Park Sapphire Tower in Davao are at 69% and 81% sold, respectively.