NEWS & EVENTS
TLDC and The Ascott Limited share insights on the industry’s positive growth with aspiring investors of The Suites at Torre Lorenzo Malate
Posted September 19, 2023
By: Torre Lorenzo
Torre Lorenzo Development Corporation (TLDC) and The Ascott Limited (Ascott) point to the flourishing real estate sector and the economy's positive growth as good reasons to start investing in the hospitality sector.
Seasoned investors gathered at the Sky Lounge of Torre Lorenzo Malate (TLM) for an Investor's Night organized by TLDC and Ascott. Alongside talks from TLDC CEO Tomas P. Lorenzo and COO Cathy Casares-Ko, guest speakers at the event included Colliers Philippines Director of Research Joey Roi Bondoc, and The Ascott Limited Philippines Country General Manager Philip Barnes and Residence Manager Joyce Agsaway, who spoke about the industry's exciting trends.
The night focused on the opening of The Suites at Torre Lorenzo Malate, a unique collaboration between TLDC and Ascott, showcasing a world-class serviced residence at the heart of Malate that serves as an exciting way to diversify the investment portfolio.
Travel and occupancy are on the rise
According to Bondoc, the quick pace of air travel recovery includes the resumption of business travel and MICE (meetings, incentives, conferences, and exhibitions) and the growing inflows of foreign investments. All these will positively impact hotel investors and operators.
Arrivals to the Philippines are up by 1,519%, far exceeding the Department of Tourism's target, with 2.65 million visits from abroad in 2022. Bondoc shares that several high-paying visitors from the United States, Europe, South Korea, and China plan to invest in the Philippines and stay in residences for long-term stays, including 70-85% corporate visits for serviced residences, according to Barnes.
People are on the move now that restrictions have relaxed and "revenge" spending and travel have become more frequent, positively impacting the hospitality sector such as hotels and residences since people are now more willing to travel and invest.
With locals that are now willing to travel and spend, occupancies have increased. With more demand, there are more developments rising, from modernized airports to tourist destinations to retirement places for foreigners. With all these developments happening, now is the best time to invest in the tourism industry.
Now is the right time to invest
"Now is the right time to invest. If not now, then when?" said Bondoc, who shared his report on the Philippine economy and the property market in general to the hospitality sector. The economy grew by 7.6% in 2022, which marked the fastest pace of economic growth in forty-six years and a great uptick following the early lockdown years, with forecasts predicting a growth of 5.5 to 7% in 2023. Inflation is reportedly on track to decrease, with an interest rate cut being likely according to the central bank.
In the past year, more foreign companies and manufacturers have set up shop and have invested in the Philippines due to demand. Foreign direct investments (FDIs) that have arrived in the Philippines included manufacturing, real estate, BPOs, retail, and construction., for a total inflow of $1.5 billion USD.
With the imminent arrival of more people visiting and spending in the Philippines, Bondoc recommends the following to hotel or residence investors: flexible packages for leisure and business travelers, gradual reopening of MICE facilities, tie-ups with airline offerings, maximized opportunities from initiatives of both private and public sectors, and taking advantage of pickups in business travels. And they have just the right investment to pitch to the visiting audience.
The "suite" collaboration - a worthy investment
"We like showing Torre Lorenzo Malate because this building encapsulates what we are as a developer." says Ko, adding, "Torre Lorenzo Malate is proof that we are able to deliver top-notch property management that ensures long-term value for your investments." With its serviced residences, The Suites at Torre Lorenzo Malate offers a unique investment opportunity in the hospitality industry that captures both leisure and business travelers who may be staying for a night or two longer. "A service residence provides the comfort of home with actually everything that you would get from a hotel stay," explained Barnes.
The Suites in Torre Lorenzo Malate, which opened in June 2023, serves as a unique collaboration between Torre Lorenzo Development Corporation and The Ascott Limited that grants aspiring investors a hassle-free opportunity to expand their portfolio and earn over time through their own serviced residence while being part of Ascott's global network.
As the lodging arm of CapitaLand, The Ascott Limited has grown to be one of the leading international lodging owner-operators. Based in Singapore, Ascott's portfolio spans over 220 cities across more than 40 countries in Asia Pacific, Central Asia, Europe, the Middle East, Africa, and the USA.
"In terms of an investment aspect, with a service residence, you look at consistency of income, so your income is consistently recurring as compared to when you're in the leisure side and it has drastic dips," says Barnes. Barnes showcased Ascott's loyalty program, the Ascott Star Rewards, which boasts 3 million repeat customers, as well as the several accolades the Ascott Limited has won as a brand. "What is more important to the corporates? Efficiency and recognition," Barnes says, which the Ascott Limited has in spades.
Agsaway also highlighted TLDC's appeal to universities, hospital sectors, and travel agencies with its signature residences as an advantage for The Suites. She also noted a healthy 50/50 ratio for short-term and long-term stays, with 70% of travel coming from the corporate industry.
With the positive developments in the hospitality industry and continual growth of the local economy, attending investors were encouraged to expand their portfolio and engage in the exciting opportunity that is The Suites at Torre Lorenzo Malate.
To know more about investing and purchasing units in The Suites at Torre Lorenzo Malate, please contact (+632) 8889-8532, visit torrelorenzo.com, or message us on Facebook at www.fb.com/TorreLorenzoOfficial. For booking a stay in The Suites at Torre Lorenzo Malate, kindly visit The Ascott Limited's official website.
