Waterfront to borrow new funds for debt payment, hotel renovation

Waterfront Philippines Inc., which claims to be the country’s leading hotel operator, will borrow new funds to settle obligations and renovate its properties. Some P2 billion will be borrowed by the Gatchalian-controlled company, Waterfront said in a disclosure to the Philippine Stock Exchange (PSE). Besides being used to restructure and refinance its loan from the Philippine National Bank (PNB), funds will also be used to redecorate its hotels in the cities of Cebu, Mactan, Davao, and Manila. In February, the company has already allotted P826 million for its PNB debt under a compromise agreement between both parties. Total payments have reached P2.9 billion over the last eight years, more than three times its original principal of P780 million. With the partial loan payment, the company can focus on improving its facilities and prepare for new and emerging tourist markets. The company, which has more than 2,000 rooms, expressed confidence that the Philippine tourism industry outlook will still remain bright. It is currently expanding its casino operations with the government-led Philippine Amusement and Gaming Corp. (Pagcor) in Waterfront Cebu City Hotel in Lahug, Cebu City and Manila Pavilion Hotel to attract more customers. - RJAB, Jr., GMANews.TV