BIZ BUZZ: Global hotel brand mulls over PH exit

MANILA, Philippines–It’s still a buyer’s market out there in the local property scene, and several skyscrapers—including those in the Makati central business district—are up for grabs.

For instance, this luxury hotel (not the one that you’ve already read about) that is part of a well-established global chain still has about 14 years more of leasehold to go.

But because of a global deleveraging, despite its enviable location in this part of the world, exiting the Philippines has become an option.

“They had issued bonds and it’s very expensive. They’ve got 10 to 12-percent (per annum) cost of money,” a well-placed source from the property industry told Biz Buzz.

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“Their global portfolio is affected. They built a lot of condo units in Hong Kong. They built a lot of hotels in China. Those are impacted heavily, so they want to look at selling assets to help pay down some of their debt.”

However, the only Philippine asset that they can sell is their hotel building, because the land is owned by the Ayala group.

“So if you don’t own the land and you only have 14 years left and you need to invest and fix the place, they (investors) don’t want that.”

Because there isn’t enough time in the leasehold terms to recoup their prospective investment, our sources say the most likely buyer will thus be Ayala Land Inc., which can eventually include this as part of their redevelopment plan, similar to how Hotel Intercontinental Manila had been knocked down (as will be decades-old Dusit Thani Manila in a few years) to give way to a new development.

If and when a deal is made, if Ayala isn’t in a hurry to redevelop this area, it can just bring in another hotel brand to take over operations.

In any case, it gives Ayala a chance to recover this valuable property, and plan something new, ahead of the original lease expiration. —Doris Dumlao-Abadilla

Marikina goes beyond shoes

Long known as the country’s shoe capital because of the presence of a multitude of local shoe makers, Marikina City wants to be also known for something else: a center of innovation.

This it seeks to achieve by unlocking the full potential of the recently launched Philippine Innovation Hub, a new facility at the Marikina Enterprise Center that will centralize support for entrepreneurs and realize the vision of a “Marikina Startup Valley.”

The hub led by the Department of Trade and Industry and National Development Co stems from the vision of Marikina Rep. Stella Quimbo to bring together government and the private sector under one roof to address challenges faced by small businesses and creatives.

The innovation hub will offer integrated services including technical assistance, startup incubation, streamlined regulations, digital onboarding, and investor matching—all in one place so that Filipino businesses can formalize, innovate, and compete without leaving Marikina.

NDC General Manager Saturnino Mejia called the Hub a model of cross-sector collaboration. “What we’re launching here is not just a space—it’s a mission,” Mejia said. “One that’s rooted in shared progress and built for real impact.”

The economist-lawmaker stressed Marikina’s competitive edge. “Marikina has always had the talent, the creativity, and the grit,” she said. “What we’re building now is the structure that will let that talent lead—not just locally, but globally. This is how we begin the future. This is how we build Marikina Startup Valley.” Tina Arceo-Dumlao