Conglomerate banks on core units for sustained growth

A major Philippine conglomerate is leaning on its core businesses in banking, power, and real estate to drive sustained growth, while positioning its hospitality arm as an emerging fourth earnings pillar.

Filinvest Development Corp. (FDC), led by the Gotianun family, is targeting at least 20 percent average annual earnings growth over the next five years, supported by the performance of its key subsidiaries, according to the group’s chief finance officer Ven Christian Guce.

“The conglomerate is composed of three large legs in terms of earnings contribution — the bank, the power, and then real estate,” Guce said. “From those core businesses, we actually have the key drivers for growth that can sustain and deliver the 20 percent growth that we mention in terms of ambition.”

FDC’s banking arm, EastWest Bank, was described as being in a strong position for further expansion, with Guce citing its growth runway and potential improvements in return on equity.

On the energy side, the group plans to triple its power portfolio over the next seven to eight years. Half of that capacity is expected to come from renewable sources by 2033, in line with broader sustainability goals.

Meanwhile, its real estate business continues to focus on regional expansion beyond Metro Manila, where the residential sector remains competitive.

“Our real estate business is kind of low-key but we’ve been expanding into the regions, in fact, much earlier than our larger peers,” Guce said. “We’ve always had a strong presence in Visayas and Mindanao as well as large developments in Luzon.”

The group’s hospitality segment currently accounts for about five percent of overall earnings but is expected to become a more significant contributor in the coming years as Filinvest Hospitality Corp. embarks on expansion projects and signs new management agreements.

“We’re now starting to reap the benefits of having a strong brand by signing up hotel management services as well as the use of our brands with third-party developers,” Guce said.

Future growth is expected to come from both company-owned hotels and an asset-light model involving third-party management contracts and brand licensing. Filinvest aims to add 2,000 new hotel keys over the next five years, with Baguio, Clark, and Bohol identified as priority locations.

Upcoming projects include Crimson Clark Hotel, a five-star development offering over 300 rooms at the Mimosa Leisure Estate, and Grafik Baguio, a 256-room hotel built under the EDGE Green Building Program of the International Finance Corporation.

In addition to new builds, Filinvest is undertaking renovations across its hotel portfolio, which includes Crimson Resort and Spa Boracay, Crimson Resort and Spa Mactan, Crimson Hotel Filinvest City Manila, and Quest Hotels in Cebu, Clark, Pampanga, and Tagaytay.