AGI eyes $2 billion in Boracay, Cebu resort projects
Alliance Global Group Inc. (AGI), the holding firm of Filipino tycoon Andrew Tan, confirmed plans to develop two boutique integrated resort (IR) projects in top Philippine tourist destinations, Boracay and Cebu.
“Alliance Global Group, Inc. (AGI) or the Group, inclusive of its subsidiaries, confirms that it has plans to construct a boutique integrated resort (‘IR’) project in Boracay Newcoast with an investment commitment of $300 million, as previously disclosed,” the Group said in a disclosure to the Philippine Stock Exchange.
The company also reaffirmed its investment commitment in Cebu. “The AGI Group also plans to construct another boutique integrated resort project in Mactan Newtown with an investment commitment of $300 million.”
Support infrastructure already underway
To complement the Boracay IR project, AGI stated that it has completed a major venue and is currently working on accommodation facilities.
“In support of the IR project in Boracay, the AGI Group is building new hotels and has already completed the Boracay Newcoast Convention Center with 1,200 seating capacity.”
Earlier, AGI President and CEO Kevin Andrew Tan emphasised that Boracay World Resorts would bring a unique blend of nature and modern luxury, appealing to global tourists. The resort’s focus will be on sustainability, ensuring that it complements the island’s size and environment.
Similarly, in Mactan, the Group is developing its own convention hub. “In support of the IR project in Mactan, the AGI Group is also building new hotels and the Mactan Expo Center with 2,500 seating capacity.”
$2 billion as possible long-term outlay
that while its committed investment totals $600 million, long-term growth plans could drive the total to $2 billion.
“There is a possibility that the AGI Group’s collective investment in the above-mentioned integrated resort projects could hit US$2 billion in view of its collective long-term growth plans, and could be considered as the Company’s indicative investment that is forward-looking in nature,” the company said.
The Group noted that only $600 million is firm at present, and the rest remains uncertain. “Except for the above-mentioned amount of committed investments, the remaining figure is subject to certain risks and uncertainties that could vary the actual amount of the investments.”
Clarifying news reports on Kevin Tan’s remarks
AGI’s disclosure was issued in response to a news article posted on local media Bilyonaryo.com on 25 July. In that article, Tan was quoted as saying: “In any integrated resort, one of the biggest requirements of PAGCOR is for us to build luxury hotel rooms. So, we’re committed to doing that.”
“Part of our investments will also be going to other components of tourism, like entertainment,” the local media quoted Tan.
While the article suggested a near-term $2 billion outlay, AGI’s clarification confirms that such a figure remains speculative at this stage.
Expansion aligned with AGI’s 2025 capex plan
The two IR projects are part of AGI’s wider expansion strategy for 2025. The company has earmarked PHP59 billion ($1 billion) in capital spending this year. Its leisure development firm, Travellers International, along with subsidiaries Megaworld and Emperador, is spearheading the efforts.
AGI’s diversified portfolio includes investments in real estate, hospitality, spirits manufacturing, and quick-service restaurants.
