Annual Report 2019

A N N UA L REP O RT | 2 0 19
CONTENTS
2 OUR BRANDS
4 OUR SUBSIDIARIES
6 WPI CHAIRMAN’S MESSAGE

Rising to the Challenge
11 APHC CHAIRMAN’S MESSAGE
Staying the Course
14 WHO WE ARE | OUR VISION | CORE VALUES | CORPORATE MOTTO
15 WPI DISPLAYS - REVENUE| REVPAR & ARR | OCCUPANCY | ASSETS
17 APHC DISPLAYS - REVENUE| REVPAR & ARR | OCCUPANCY | ASSETS
18 INDUSTRY OVERVIEW 2019
23 THE YEAR IN REVIEW. OUR COMPANY IN 2019
28 HOTEL PERFORMANCE
30 GUEST SATISFACTION
31 ROOMS
32 FOOD & BEVERAGE
32 OUR BRANDS - WCCH | WMHC | WAHC | WIHD
38 MARKETING HIGHLIGHTS
OUR BRANDS
A N N UA L REP ORT | 2 0 19
CHAIRMAN’S MESSAGE
Rising to the Challenge
“We continue to fight the challenges as best
we can, get involved and invest in
strengthening our brand. We continue to
change, pivot and innovate. As we pursue our
mission, we will eventually get stronger.
Inevitably, because we have chosen to adapt
rather than recede, we will transform into Fellow Shareholders, been nothing short of unprecedented.
something greater.” International and domestic travel has
Annual reports are an occasion to ground to an abrupt halt, carrying with it
chronicle, review and celebrate the all industries dependent on the free and
achievements of the year prior. That open movement of people across
would have been the case in every borders.
other scenario; however, as of this
writing, our company, our industry, our As a player in the hospitality industry,
country and the world are dealing with we are reliant on the entire network of
an exceptional circumstance that must travel and tourism players, as well as
not escape mention. government support, for our business
to continue to thrive. Domestic
This report is being published in the travelers—our top market based on
midst of a pandemic—a once-in-a- geographic origin (48% of revenue in
generation and rare-in-a-century event. 2019), have been unable to pursue their
This event has had a massive and plans due to the risks. International
wide-ranging impact on all types of travelers from countries such as Korea,
businesses and industries, and ours Japan, the US and China, our top
certainly has not been spared. In fact, international markets, have been
one could say that it was the first to be largely unable to visit the country for
heavily hit. what is now over half a year, dealing
with outbreaks and upheavals in their
The COVID-19 pandemic’s disruption of own territory. Ergo, in this time of
the travel and tourism industry has unpredictable change, there are many
6
factors beyond our control. experienced a remarkable increase of 7%. From the previous
year’s PHP 400.61 million, the hotel has generated PHP 430.14
Our organization, while resilient in dealing with many business million. F&B income this year is PHP 448.90 million, an increase
challenges through the years, has never faced one as massive of 12% compared to the previous year’s PHP 400.19 million. Rent
as this. This makes for crucial context as we relay the and related income has also experienced a double-digit
information in this publication. increase, from PHP 313.10 million in 2018 to PHP 348.29 million
in 2019—a growth of 11%. Other income has increased by 15%,
That being said, and context having been applied, I am no less from PHP 5.89 million in 2018 to PHP 6.77 million currently. GOP
delighted and proud to relay the news of a good performance in has gone up from PHP 420.29 million the previous year to PHP
2019. Consolidated figures are as follows: 450.02 million this year—a jump of 7%. Cost and expenses are
at PHP 784.09 million. Net income is PHP 229.77 million.
Gross revenue for the group in 2019 is PHP 1.94 billion. This is an
increase of 5% from the previous year’s PHP 1.85 billion. Rooms Our strategically located property Waterfront Airport Hotel
revenue is PHP 726.77 million, up 3% from PHP 704.25 million in and Casino (WAHC) continues to deliver positive growth this
2018. F&B revenue is PHP 666.39 million, up 6% from PHP year, with its gross revenue amounting to PHP 445.98 million—a
630.70 million in the previous year. Rent and related income has 5% increase from the previous year’s PHP 424.03 million.
also increased by 7%, from PHP 476.33 million in 2018 to PHP Rooms revenue is up by 8%, from PHP 170.73 million in 2018 to
510.65 million currently. Other income is at PHP 35.97 million. PHP 183.87 million in 2019. F&B revenue increased from PHP
80.44 million in 2018 to PHP 82.04 million in 2019—a rise of 2%.
Costs and expenses for the group have been reduced by 1.01%, Rent and related income is at PHP 165.12 million this year,
from PHP 1.39 billion in 2018 to PHP 1.38 billion in 2019. GOP is increasing by 5% in comparison to the previous year’s PHP
up double digits by 23%, from PHP 459.44 billion the previous 157.58 million. Other income is at PHP 14.94 million.
year to PHP 563.37 billion currently. Net income is at PHP
434.40 million in 2019, bouncing back 488% from a net loss of The property’s cost and expenses is at PHP 228.04 million,
PHP -111.93 million in the past year. which means the company has managed to keep a level expense
amount (0% growth rate in costs) compared to the previous
Our flagship property Waterfront Cebu City Hotel and year’s PHP 228.89 million. GOP is PHP 217.93 million, an
Casino (WCCHC), remains a leader in revenue and increase of 12% from PHP 195.15 million in 2018. Net income in
growth. For the third straight year, gross annual 2019 is PHP 140.79 million, an unprecedented double-digit
revenue has passed the PHP 1 billion mark. From growth of 40% versus the previous year’s PHP 100.61 million.
PHP 1.12 billion in 2018, WCCH gross revenue
has surged to PHP 1.23 billion in 2019—a The property remains one of our most strategic assets,
10% growth rate, increasing revenue by positioned adjacent to a major international airport and travel
PHP 114.33 million in a single year. This hub.
double-digit growth surpasses the
previous year’s growth rate of Waterfront Insular Hotel Davao (WIHD), our prime property
6.29%. in Davao City, continues to perform well. In 2019, gross revenue
is at PHP 253.81 million, a 5% growth from 2018’s PHP 240.88
Rooms revenue at the million. Rooms revenue has also increased at PHP 112.76
hotel has also million—up 10% this year from PHP 102.18 million the previous
7 FROM THE CHAIRMAN RISING TO THE CHALLENGE

year. F&B revenue has increased from PHP 132.70 million in 2018 to PHP 133.23 After assessing the various disruptions that the pandemic has done to our
million in 2019--representing a level growth rate (0%) but with an actual figure operations, we had to make the difficult decision to cut costs in our labor force.
increase of PHP 0.53 million. Other income is at PHP 7.82 million—a significant This we did, while doing our best to make sure that we preserve as much of our
increase of 30% from PHP 6 million in 2018. manpower as possible and help people stay employed as we all navigate the
difficult life changes that lie ahead.
Cost and expenses for the property is PHP 220.30 million. GOP for 2019 is PHP
33.51 million. NOP is PHP 19.73 million—a double-digit increase of 14% versus We unfortunately needed to let go of our seasonal workers. The total number of
last year’s PHP 17.33 million. displaced seasonal employees across our entire business is six hundred and
forty three (643) or approximately 84.72%. It was not an easy thing to do. We
The Manila Pavilion Hotel (MPH) is on track with its reconstruction, in reached out to them months later, and provided assistance in the form of food
keeping with our plans to bring our market an all-new and more captivating staples with a long storage life that would help sustain them in the crucial times
Waterfront experience. While 2018’s business interruption due to the ahead. We look forward to re-engaging them when times are better.
unforeseen fire incident early that year stalled our initial plans for a full
reopening, we have pivoted and decided to move forward full steam with fully Other labor cost-cutting efforts involved having to make certain adjustments in
revamped concept—a redesigned and revitalized hotel that exceeds all the compensation among our Peers. I must emphasize the fact that we made
standards in its class and is unlike any other hotel experience in Manila. sure we exhausted all means to preserve our people’s employment. In
accordance with the Department of Labor and Employment (DOLE) guidelines
The rebuilding of MPH proceeds to transform it into a modernized and updated and regulations, we implemented forced leave and work days reduction in
hotel while preserving its prestige as a historic landmark. It will have order to cut costs. We implemented the compressed work week or flexible
ultramodern room facilities, new dining experiences, luxurious common spaces work arrangement option not just to save on costs but also to minimize contact
and dynamic possibilities. This vision for MPH is a path towards the company’s rate, thus reducing the probability of virus transmission. We also set the
future, and paves the way for an expanded clientele, assuring new revenue guideline on no overtime or excess hours. One of our initial fiscal remedies was
streams for business through its one-of-a-kind offerings. to make adjustments to the cost of living allowance, which we later on needed
to suspend altogether in order to stay within budget. We also applied pay
These are the positive developments among our properties, a product of the reduction and provided the option of a special retirement package for those
hard work and dedication of our management and staff to keep Waterfront a employees who qualified or were interested. To protect our employees and
prosperous and enduring brand throughout the times. also to abide by the community quarantine requirements per local government
unit (LGU) where each property is located, we provided temporary
Overlapping with this success is the current pandemic, which brings us to a fork accommodations and shuttle service. We also provided financial assistance for
in the road. Uncertainty looms. It is incumbent upon us to make the necessary our displaced regular employees.
leadership decisions to make sure that we come out of this crisis better and
stronger. These measures were all decided while ensuring that the entire team was on
board, and in agreement that it was the best and most sustainable way to move
The most important considerations in our strategy are as follows: first, that the forward.
company and organization survive intact; second, that we protect shareholder
value as we navigate the uncertainties in the coming months; third, we adhere Power is one of our largest cost centers, so to manage, this we reduced
to a concrete, synchronized plan of action across our properties—that detailed operations and temporarily closed down some outlets and room floors to
and concrete steps be outlined and undertaken in the most timely and minimize utilization. The work week reductions we implemented helped reduce
coordinated manner. office electricity consumption in all our properties as well.

Dealing with the pandemic has also involved a lot of creativity adapting to these new trends and making sure that we maximize
and agility. We have to ensure that we utilize all possible revenue each new opportunity.
streams and be creative in our approach in attracting new
markets. Waterfront has adapted to accommodate all new We have begun to resume “new normal” operations by slowly
business in relation to the unique circumstances that COVID has rolling out our F&B outlets in accordance with the guidelines of
brought. Among these are the quarantine or isolation the DOH and other government agencies. We are also coming
requirements being imposed on newly arrived travelers, those up with enticing packages for our guests to re-acquaint
on layover, or special types of industries like Business Process themselves with our hotel experience, whether it’s recreation,
Outsourcing (BPOs). In the latest travel industry reports, long dining or city staycations. It is an ongoing and constant
stays are becoming the new norm, and hotels need to be open to adjustment, but we are determined to go through this and
adjusting their operations to seeing that there is an emerging succeed.
market for such needs. Waterfront has created special rates and
packages for such long stays. Since March of 2020, our company has rolled out CSR programs
to help our communities survive. We have made our medical
We have also complied with all the necessary Department of institutions and our front-liners as priorities. In March 2020, we
Health (DOH) standards to ensure proper biosafety protocols in distributed food packs and children’s healthcare packs for the
our establishments. The health and safety of our guests and front-liners and children’s ward of both public and private
Peers are paramount to us. We are proud to say that Waterfront hospitals in Cebu. We also donated personal protective
has passed all safety standards and is committed in doing equipment (PPE) to the front-liners of several designated local
business in accordance with the new health standards set for government units (LGUs) and anesthesia departments of
our industry. private hospitals, which were particularly in need of protective
gear due to the high risks of the specialization. We continued
Another revenue-generating trend that has been strengthened with distribution of food packs to nine (9) fire stations in Cebu
due to the pandemic is online food delivery or food pickup. Back City. In April, we distributed more food packs to the fire stations,
in the day, it would have been unlikely for hotels to get into the private and public hospitals, and checkpoint front-liners,
delivery service market, but these days things have including allocations for the Cebu Provincial Government to
obviously changed. Each of our F&B outlets has adapted distribute to provincial hospitals. The Department of Social
to cater to a growing market of online customers. We Welfare and Development (DSWD) Cebu was also given food
have put together attractive packages for our packs to support its volunteers who were assisting in assistance
market, with each product ensured to be programs for indigents, homeless people and displaced
meticulously branded as distinguishably workers.
Waterfront, and not compromising on
prestige, brand image and quality. As More such efforts continued in May to help quarantined
there has been a shift in spending barangays who were unable to fully support their residents. In
habits, with people preferring to May 11, 2020 our major shareholders representing WPI donated
stay at home and order in, medical supplies to the Province of Cebu—a total of over a
Waterfront brings its brand thousand pieces of PPEs, five thousand (5,000) pieces of
and its restaurants to their medical gloves, and more items like disposable masks, KN95
homes. With ears close to masks and goggles. (Please see CSR section of this report for
the ground, we are full details.)

Through this pandemic, we have discovered new strengths and a renewed

sense of purpose. The COVID-19 pandemic has shifted our mission to
dedicating ourselves as a company to our social responsibilities. As a business
organization, our solution to this crisis has not been to withdraw into our shell
and wait for it to be over; it has been to extend ourselves in service to the
community, and to ensure that we do our best to take care of our people.
Through our ongoing CSR efforts, Waterfront is taking a leadership position as
a member of our industry and of our community. Through showing leadership in
crisis, we build value. We strengthen relationships. We retain crucial ties in
solidarity with our community.
Brand-building is not just about advertising, public relations and other paid
content strategies to get one’s name out there; it is about getting involved in
the very lives of the community that sustains you, and is at the heart of your
business—our community comprises our patrons, and thus is the same
network that drives our business; in return, we have a duty towards our patrons
to communicate and serve in times of need. At Waterfront, we do not just
associate our brand with advertising, sales and guest satisfaction when they
experience our product. It is all about total community perception. It is about
service, and rising to the occasion.
The value we create these days, by paying it forward during the times when
such acts of care are needed most, playing an active role in society building
and community assistance, will stay with our brand. Our actions during this time
display our values, and define us as an organization, and they will be
remembered.
I am proud of how our entire organization has managed to respond to this

unique crisis. Actions transcend proclamations, and what we say in our mission
statements, are being demonstrated today. Through our actions, we
inadvertently build our brand of service as one that is outward-looking,
involved, concerned and committed to our patrons.
We continue to share what we have, to care for others, fight the challenges as
best we can, get involved and invest in strengthening our brand through these
uncertain times. We continue to change, pivot and innovate. As we pursue our
mission, we will eventually get stronger. Inevitably, because we have chosen to
adapt rather than recede, we will transform into something greater.

A N N UA L REP
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CHAIRMAN’S MESSAGE
Staying the Course
“The year 2019 has been one of continued
building-of both our property assets and our
brand. Acesite, for the entire year, has been
focused on the transformation of Manila
Pavilion Hotel into one of the Philippines’
best, most innovative and most exciting
hotels. We are building a new future for the
Manila Pavilion Hotel-officialy renamed as
Waterfront Manila Hotel & Casino-and are When difficulties hit, it is important for are paramount. Therefore, for the first
reinventing it into something grander to businesses to go back to their core time, this message will encompass two
signal a new era for the Waterfront brand.” values in order to find their years at once—the one immediately
compass—in order to chart their past, and the one as of this writing.
course, and pivot, if necessary. While
this is the Annual Report of 2019, the The year 2019 has been one of contin-
actual year of publication, 2020, and ued building—of both our property
the exceptional circumstances we find assets and our brand. We are proudly
ourselves in today requires that we take on track with our plans to create a new
into consideration the events that are level of comfort and luxury for our
taking place as this report is published. patrons and guests. Acesite, for the
entire year, has been focused on the
We are in the middle of a pandemic transformation of Manila Pavilion Hotel
caused by COVID-19, a truly difficult and into one of the Philippines’ best, most
unprecedented global issue that is innovative and most exciting hotels.
causing massive upheaval and is
affecting our industry in particular. We are building a new future for the
Hence, we find it important, as Manila Pavilion Hotel—officially
management, to note both the renamed as Waterfront Manila Hotel &
milestones of the past year, and the Casino—and are reinventing it into
unique exigencies of the current one. something grander to signal a new era
for the Waterfront brand. As it turns out,
I believe that in crises, clear information 2019 has been the perfect time to
and open communication in business undergo such a transformation,
11
continuing construction work well into 2020, in the context of (90%); medium voltage switchgear (80%); mechanical risers
slowing demand as a result of the pandemic. Crisis is an (80%); hot water system (80%); cooling tower (90%). The
opportunity to build and reinvest—two things that make up the generator set, chiller equipment, air handling equipment,
hallmark of resilience. ventilating equipment, heating equipment, portable water
pumps and fire pumps have all been delivered and are set for
The soon-to-rise Waterfront Manila Hotel & Casino depicts installation.
our aspirations, and our evolution with the times. Having been an
important part of Manila’s historic district skyline for so long, All remaining civil works have already been started. Some of
one cannot deny that the hotel needs a refresh, to chart its path these include: additional slab extension, the new all-day dining
for the coming era. It is more than just a revered landmark and area, the additional function rooms at the sixth floor and the new
representative of culture and history. It embodies dynamic drive, swimming pool. So far, we have already created and recovered
prosperity, prestige and change. Our new property carries both approximately an additional 5,000 square meters of commercial
the historic beauty of the past and the promise of the future. This area with these works. Casino fit-out works have also been
current period is our transition point. started. The exterior architecture is also being continuously
worked on, and should see significant progress in the months
The move to rebuild represents Acesite’s commitment to ahead.
delivering an ever-evolving experience for our guests and
patrons. We are not a monolithic culture; we innovate and adapt. All of this is continuing into 2020 even with the pandemic. We
This rebuilding phase provides us with new opportunities to intend to achieve the timeline and targets as close as possible to
access future markets, and address the ever-changing needs of our original plans, even as the pandemic poses challenges to
our existing ones. It is a fresh start; a clean slate. With this new logistics, transport, labor and materials availability.
image comes many opportunities. We are priming ourselves for
a dynamic post-pandemic future. We recognize that this is a truly challenging time for our
economy, yet we remain positive in our future outlook, looking
Through this redesign and reconstruction effort, we reinforce forward to a better tourism climate next year. Scientific
our commitment to adding value to an already strong development of possible treatments and vaccines is going on at
portfolio. To update you with the latest developments, I a pace that has not been matched in history, and we are
am happy to inform you that the construction work on optimistic that once viable medical solutions are found, demand
our property has largely accomplished our will approach previous numbers.
intended targets. As of the end of 2019, most of
the construction work is at forty percent For the entire group, key figures in 2019 are up. The group’s
(40%) completion or over. The itemized consolidated gross revenue has reached PHP 1.94 billion, up 5%
status is as follows: elevators (90%); in comparison with PHP 1.85 billion in 2018. Consolidated rooms
escalators (80%); fire protection revenue has increased by 3%, from PHP 704.25 million in 2018 to
system tower from the seventh to PHP 726.77 million in 2019. Consolidated F&B revenue this year
twenty-third floor (40%); fire reached PHP 666.39 million, a 6% rise from the past year’s PHP
protection system podium 630.70 million. Rent and related income is at PHP 510.65
from the basement to the million—an increase of 7% versus PHP 476.33 million in 2018.
sixth floor (40%); high Other income is PHP 35.97 million. Consolidated costs and
voltage transformers expenses went down from PHP 1.39 billion in 2018 to PHP 1.38
billion in 2019—a reduction of 1.01%. Group GOP has increased
12 FROM THE CHAIRMAN STAYING THE COURSE
by double digits, up 23%, from PHP 459.44 billion in 2018 to PHP 563.37 billion We believe that by taking care of our assets and our people, we are
in the current year. Net income is reported at PHP 434.40 million in 2019. This well-positioned to survive this crisis. Our actions during these times uphold our
means that the group has recovered from a net loss of PHP -111.93 million in the reputation as an industry leader and add enduring value to our brand. Instead of
past year by 488%. closing ourselves off, we have decided to open up to our community in
solidarity. Brand-building is equal to social responsibility, in that we
Our Manila property is expected to bolster the stellar performance of our acknowledge that the same community we help and support is that which
provincial properties as we ease out of a global crisis and take advantage of the consists of our patrons, the lifeblood of our company. Thus the survival of our
opportunities related to tourism recovery. community—and of our country—is very much tied to the future of Waterfront.
We at Acesite believe in always being one step ahead, and there is no better It is all one ecosystem that needs to bond together in times of crisis. Today,
strategy to anticipate the future than to create it through asset-building. When Waterfront’s brand equates to more than just a great product, but to decisive,
we talk about building assets, we not only mean physical assets but also the socially responsible and compassionate leadership.
company’s intangible assets—meaning its goodwill and brand.
It is important never to lose sight of the big picture. We do not just look ahead,
Through our efforts during the COVID-19 pandemic, thankfully, we are able to but beyond. We believe in an industry rebound, that this challenge is
do both. Our CSR efforts in contributing to the community are worth surmountable, and that there are many lessons to be learned from this
mentioning. Despite the fact that we have had to lay off a significant portion of temporary downturn. Change is painful, but with it comes wisdom, strength and
our seasonal labor force, we have ensured that they would be sent off with resilience. This is why we continue to invest in your company’s future.
essentials to ease the transition. Each person received support in the form of a
food or necessities package. Our properties have contributed to their
respective communities and to the medical front-liners in this pandemic by
donating food, essentials and protective equipment.
Waterfront has been actively involved in community efforts and corporate

social responsibility (CSR) projects since March of 2020. The beneficiaries or
recipients of such efforts include public and private medical institutions in
Cebu, the front-liners of some localities and hospitals, fire stations, locked
down barangays and checkpoint front-liners. We have also allocated donations
for distribution under the Department of Social Welfare and Development
(DSWD) and the Provincial Government of Cebu. Efforts continued in May 2020
where WPI donated PPE and medical supplies to the Province of Cebu. (Refer
CSR section of this report for details.)
Internally, we have done our best to support and sustain our Peers during these
times. We have implemented cost-cutting measures to help retain employees
and bridge the gap until operations have normalized. Examples of such
measures are: pay cuts, trimming of allowances, utilization of sick leave, early
retirement options and other cost-cutting packages that will help our company
sustain our workforce, and thus continue to assist them as we navigate the
uncertain climate.
13 FROM THE CHAIRMAN STAYING THE COURSE

INDUSTRY OVERVIEW
Given the extraordinary circumstances Prior to the pandemic, 2019 tourism

we find ourselves in as of the time of projections were rosy, as the entire
publication of this annual report, this travel and tourism industry enjoyed a
year’s industry overview will rate of growth that exceeded those of
encompass reviews and projections for many other global industries. Travel
the years 2019 and 2020 for reference and tourism contributes massively to
made in any part of this Annual Report. global GDP. Its direct contributions
(meaning “internal” spending or
The dramatic change in the course of within-industry spending) accounted
international travel as a result of the for 3.3% of the total GDP worldwide as
COVID-19 pandemic—and all that it of 2019, a 0.1% increase over 2018. Its
implies—compels us to examine the indirect contribution, however,
record of the past, review our provides a total contribution of 10.4% of
expectations as brought by those global GDP as of 2019, reflecting how
times, and see how those expectations truly massive and important the sector
have been upended, in order to give is to the global economy today. This
way to a new, and perhaps more indirect figure is also the industry’s the
somber truth. Even then, we also highest percentage of total
consider this as a time to find contribution to GDP in nearly two
opportunities and pivot strategies that decades. 1
will lead to future improvements and
pave a new chapter for business in the According to UNWTO, 1.5 billion
post-pandemic world. international tourist arrivals were
recorded in 2019. The industry grew by
18
4% in comparison to 2018, and was supposedly geared for a guests coming from that country. We welcomed 1,989,322
similar growth rate in 2020. Tourism’s resilience compared to Koreans in 2019 showing a 22.48% growth rate compared to the
other industries has been reflected by this continuous growth previous year. Similarly, China retained its position as the
and by its higher growth rates over the past years. 2 second largest market, with 1,743,309 arrivals. China had the
largest growth rate at 38.58% compared to the 1,257,962 in
International arrivals increased in all regions as of 2019. There 2018. Completing the top 10 market are as follows the United
was a relative slowdown in some regions due to the Brexit States (1,064,440 tourist arrivals, 2.9% growth rate, 14.43%
uncertainty in the EU, and geopolitical and social tensions, market share), Japan (682,788 arrivals, 8.07% growth rate,
which resulted in relatively slower growth among advanced 8.27% share), Taiwan (327,273 arrivals, 35.01% growth rate,
economies in the EU and Asia-Pacific compared to 2017 and 3.96% share), Australia (286,170 arrivals, 2.27% growth rate,
2018. Four percent is still a robust figure, however, and the latest 3.46% share), Canada (238,850 arrivals, 5.48% growth rate,
UNWTO Confidence Index reflected cautious optimism, as 47% 2.89% share), United Kingdom (209,206 arrivals, 4.06% growth
of participants believed that tourism was going to perform rate, 1.92% share), Singapore (158,595 arrivals, -7.68% growth
better, and 43% were of the belief that its immediate future rate, 1.92% share), and Malaysia (139,882 arrivals, -3.69%
would at least be at par with 2019. growth rate, 1.69% share).
Philippines Outlook 2019 Tourism is a major contributor to the Philippine economy. In

2019, 12.7% of our GDP was attributed to the tourism sector.
Locally, the sector was also thriving. Philippine tourism reached Tourism direct gross value added (TDGVA) was at PHP 2.48
another milestone in 2019 when it breached the 8 million mark in trillion, 10.8% higher than the PHP 2.24 trillion TDGVA in 2018.
foreign tourist arrivals. The Department of Tourism (DOT)’s Foreign tourists and Filipinos who are permanent residents of
2019 target was 8.2 million foreign arrivals. We exceeded it with other countries poured in USD 9.31 billion or PHP 482.15 billion in
8,260,913 foreign tourists arriving in the country. 3 visitor receipts, 20.81% higher than the 2018 figure of USD 7.71
billion. Not to be outdone, domestic tourism expenditures also
The figure is 15.24% more than the 7,158,467 foreign tourists saw a double-digit growth, climbing by 10.4% to Php 3.14 trillion
who visited the Philippines in 2018. South Korea remains from Php 2.85 trillion in 2018. Last year, over 120 million
the Philippines’ number one source market with almost domestic tourists were recorded. Improved connectivity
one out of four tourists or 24.08% of all the foreign between islands and year-round promo fares have attracted the
growing middle class with expendable income to travel.
8,260,913
Twenty-two percent (22%) of the Filipino household final
7,168,467 consumption expenditure was allocated for domestic tourism.
6,620,908
5,967,005
5,360,682
The Philippines received several international awards and
recognition in 2019 such as the World’s Leading Dive
Destination at the 2019 World Travel Awards, Asia’s Leading
Tourism Board at the 2019 World Travel Awards and Excellent
2015 2016 2017 2018 2019
Partner Award (for Sustainable Efforts in Boracay, among
others).
Graph 1. Foreign Arrivals in the Philippines, 2015-2019. Source: DOT In 2019, DOT launched its refreshed branding campaign. It
19
sustained the “It’s More Fun in the Philippines” slogan but re-purposed it to At least 2,000 of these rooms will be located in Mactan.
advocate for sustainable tourism. To complement the new direction towards
sustainable tourism, the DOT launched a movement called “Save Our Spots” to
call for each individual to be a responsible tourist and encourage the same Table 1. Top Visitor Arrivals in Cebu based on Country of Origin. VISITOR
behavior towards others to preserve the country’s natural and man-made ARRIVALS IN CEBU (Data from DOT Final Report 2019)
wonders. The DOT’s vision is to include sustainability in its drive for
% 2018 2019 GROWTH
competitiveness; secondarily, tourism is to be a vehicle for employment
COUNTRY SHARE VOLUME VOLUME RATE
generation and equitable distribution of income.4
KOREA 43.07% 1,191,136 1,453,081 21.99%
JAPAN 15.10% 446,580 509,322 14.05%
Cebu and Mactan CHINA 11.51% 310,930 388,478 24.94%
USA 6.72% 181,164 226,615 25.09%
Cebu and Mactan are of special interest to Waterfront as two of our major
TAIWAN 3.04% 49,786 102,542 105.96%
properties are situated in these islands. In 2019, Cebu was the number 2 foreign
AUSTRALIA 1.94% 60,919 65,464 7.46%
tourists’ destination of choice in the Philippines. A total 3,373, 979 foreign
UNITED KINGDOM 1.45% 40,013 49,061 22.61%
guests visited the province last year. This is 21.44% more than the 2,778,407
GERMANY 1.15% 32,050 38,707 20.77%
foreign tourists in 2018. Over forty-three percent (43.07%) of these or 1,191,136
CANADA 1.10% 31,324 37,065 18.33%
tourists were from Korea; 15.1% or 509,322 came from Japan, and 11.51% or
310,930 came from China. FRANCE 0.97% 25,668 32,731 27.52%
OTHERS 13.96% 408,837 470,915 15.18%
The Mactan Cebu International Airport (MCIA), dubbed as the only "Resort TO TA L 100.00% 2,778,407 3,373,979 21.44%
Airport in Asia", recorded 12,662,055 passenger movements in 2019. A total of
8.37 million were domestic and 4.29 million are foreign passengers. It hosted
36 domestic and 37 international routes from 29 local and foreign airlines. Davao
Cebu City hosted three major international tourism-related conventions in Waterfront’s prime property, Waterfront Insular Hotel Davao, is a leading hotel
2019. First and the biggest was the 17th edition of Routes Asia with over 800 at the heart of this Southern city, which has positioned itself to be a leading
delegates including 100 airline executives, 20 airports representatives, and 30 MICE destination. The city, being the hometown of the current Philippine
tourism authorities. This was hosted in Waterfront Cebu City Hotel and Casino President, has become a top convention destination and has welcomed several
(WCCHC). national conventions in 2019. In 11 months of 2019, tourist receipts in the city
amounted to PHP 51 billion, generated from some 2.34 million arrivals. This
In 2019, the length of stay among tourists has also increased to a minimum of almost doubled in just four years, from PHP 26.2 billion in 2015. The bulk of this
three days due to expanded tourism packages, which includes visiting income came from the MICE segment. Foreign tourists visiting Davao City are
destinations in far flung towns, and even neighboring provinces. mainly from the United States, with 12,035 tourists, China (9,366), Japan
(6,647), Korea (4,601), and United Kingdom (4,566). Emerging foreign markets
To support the growth in tourist arrivals, MCIA is constructing a second parallel in the region include Australia, India, United Arab Emirates, Singapore, and
runway, expected to be completed in early 2022. This will increase the Canada.
efficiency of the airport and ensure that the airport operations will not come to
a stop even if an unfortunate incident may happen in the other runway. Over Aside from Tourism, Davao is actively promoting the city as a safe investment
5,000 brand new hotel rooms are also expected to open in the next few years. destination for businesses. In June, they held the 5th Davao Investment
20
Conference (Davao Icon) promoting investment opportunities in as the world was beginning to wake up to a new reality.
Tourism, Infrastructure and Real Estate, Information and
Communication Technology, and Halal Trade and Tourism. In the course of a few months, never has the modern world seen
such a dramatic turnaround of events, where a pandemic
The Davao City Investment Promotion Center (DCIPC) has brought travel and tourism to a sudden halt. A new report from
organized foreign trade missions to China, Japan, Malaysia, the UNWTO, published in May 7, 2020, stated a very different
Singapore, South Korea, and Taiwan primarily introduce Davao picture, where 2020 Q1 statistics showed a 22% drop in
City as both an investment and tourism destination. Travel and international tourist arrivals as a result of the COVID-19
trade missions to Qatar and Taiwan were also planned. pandemic.5
In 2019, Davao City had five international direct air Furthermore, UNWTO stated that the pandemic could cause a
links—Singapore, Hong Kong, Quanzhou, China, Qatar and 60 to 80% decline over the entire year in comparison to 2019
Manado, Indonesia. These routes are currently being served by figures. This means that millions of livelihoods are at risk, and
six airlines, namely, Cebu Pacific, SilkAir, XiamenAir, Qatar that the industry’s SDGs (Sustainable Development Goals) are
Airways, Cathay Dragon, and Garuda Indonesia. likely to suffer.
The UNWTO reports that Asia and the Pacific has shown the
Table 2. Davao’s Tourist Arrivals January 2019-January 2020. Source: 5
Data banking Section, Davao City Tourism Operations Office.
highest level of impact in relative and absolute terms, at about
-33 million arrivals. However, Europe, despite its lower
2019 2020 percentage, is also quite high in volume at -22 million.
COMPARATIVE
TOTAL TOTAL
OVERSEAS OVERSEAS MONTH TO
DOMESTIC FOREIGNERS ARRIVALS FOR DOMESTIC FOREIGNERS ARRIVALS FOR
FILIPINOS FILIPINOS MONTH
THE MONTH THE MONTH
INCREASE (%)
Graph 3. International Tourist Arrivals in 2019 vs Q1 2020 (% change)
JANUARY 169,434 13,123 4,645 187,202 183,888 13,458 2,299 199,645 6.65%
FEBRUARY 161,461 14,177 4,685 180,323 173,306 8,837 2,084 184,227 2.17%
Source: UNWTO
MARCH 174,596 17,742 4,174 196,512 29,021 2,325 585 31,931 -83.75%
APRIL 214,672 16,080 3,337 234,089 29,595 332 154 30,081 -87.15%
MAY 218,931 17,132 3,603 239,666 16,230 222 131 16,583 -93.08% World Europe Asia and the Pacific Americas Africa Middle East
+20
JUNE 210,458 16,683 2,866 230,007 14,146 43 - 14,189 -93.83%
TOTAL 720,163 61,122 16,841 798,126 446,186 446,186 5,253 897,625 -40.28%
Source: Databanking Section - City Tourism Operations Office +7

+6
+4 +4 +4
+2
+0
New Outlook
All promising local and international -13
-11
projections have taken a different -15

-20
turn because of the pandemic. -22
-19
None of the UNWTO predictions

would come true past 2019 Jan-March 2020*
February of 2020, -35
-40
21
Scenarios A Recovery Seen in 2021
It is difficult to predict where the tourism sector will go from this point, due to The UNWTO Panel of Experts survey projects domestic demand to return
the high uncertainty surrounding key developments in the pandemic. The much faster than international demand. This is to be expected given that
UNWTO has created several projections based on the timeline of gradual gradual easing tends to happen within national borders before it reaches
reopening or easing of travel restrictions; one based on a highly optimistic international borders, with travel bubbles easier to implement within a country.
scenario with reopening in July, spelling a -58% downgrade; another based on
a September easing, with a -70% decline in arrivals; and a third based on an Leisure travel is also expected to recover more quickly over business travel.
early December easing of restrictions, with a -78% decline. The outlook for Europe and Asia is mixed, but more optimistic than that of the
Americas. 5
Graph 3. International Tourist Arrivals in 2020: Three Scenarios (YoY monthly change, %)
Source: UNWTO Graph 4. Survey on Tourism Demand Recovery, Domestic and International
Source: UNWTO
According to the report, “the impact of the loss of demand in international

travel could translate into: Loss of 850 million to 1.1 billion international tourists;
loss of US$910 billion to US$1.2 trillion in export revenues from tourism; 100 to
120 million direct tourism jobs at risk. “5
There is no doubt about the severity of this crisis, and the UNWTO states that
“its impact will be felt to varying degrees in the different global regions and at
overlapping times, with Asia and the Pacific expected to rebound first.“5
22
Graph 5. Survey on Tourism Demand Recovery per Region

Source: UNWTO
1 Statista https://www.statista.com/statistics/1099933/travel-and-tourism-share-of-gdp/
2 UNWTO https://www.unwto.org/international-tourism-growth-continues-to-outpace-the-economy
3 Philippinjes figures DOT http://tourism.gov.ph/#
4 Vision of DOT http://tourism.gov.ph/NTDP.aspx
5 UNTWO 2020 predictions https://www.unwto.org/news/covid-19-international-tourist-numbers-could-fall-60-80-in-2020
23
THE YEAR IN REVIEW
OUR COMPANY IN 2019 forward from a time of unique

challenges and unforeseen business
Waterfront has achieved many interruptions to reclaim growth for the
significant targets in 2019. Our second year in a row, hitting our growth
company has strived to improve and objectives in nearly all key metrics. We
optimize performance, having spent the have steered our company into a quick
last couple of years realigning rebound, optimizing our assets on all
operations so as to capitalize on the fronts. Our key strategy was to go back
strengths of our provincial to our core strengths and rely on those
properties—essential as we await the as a strong foundation to propel us
re-launch of our new Manila property, forward and overcome obstacles.
which is still under construction. The
realignment is deemed quite Our future Manila property will be
successful, because our provincial renamed the Waterfront Manila Hotel
properties have been able to maintain and Casino. It will be a standing symbol
impressive consolidated numbers, of our relentless innovation and our
despite the temporarily reduced strength. While respectful of the
number of operating facilities. property’s history and significance to
Old Manila, we move forward to
This achievement is proof of our showcase a rejuvenated brand that will
organization’s resilience, persistence, be our cornerstone for the future. . It will
determination and ability to pivot in be a building with all-new comforts and
such a short period. We have moved amenities, ultramodern technology,
exciting new experiences, a bold
24
facade, and will embody a vivid transformation that will delight managed to improve significantly on its previous performance.
any guest that walks through its doors. As travelers and guests
constantly seek new thrills and adventures, our property will The property’s gross annual revenue grew from PHP 1.12 billion
become their exciting haven in the Philippine capital, offering a in 2018 to PHP 1.23 billion in 2019—an increase of 10% or PHP
stay that’s well beyond the ordinary. 114.33 million. The hotel’s Rooms revenue is PHP 430.14
million—a growth of 7% versus the previous year’s PHP 400.61
Consolidated group figures in 2019 are optimistic and million. F&B revenue also grew by 12% to PHP 448.90 million
demonstrate our well-performing provincial properties as the versus last year’s PHP 400.19 million. Rent and related income
present anchors of our company. The group’s 2019 gross rose from PHP 313.10 million in 2018 to PHP 348.29 million in
revenue is PHP 1.94 billion. This figure signifies a jump of 5% in 2019—a remarkable 11% increase. The hotel’s other income is
comparison to 2018’s PHP 1.85 billion. Our total Rooms revenue also up by 15%, increasing from PHP 5.89 million in 2018 to PHP
this year is PHP 726.77 million, an increase of 3% versus PHP 6.77 million in 2019. GOP is up 7% from PHP 420.29 million in
704.25 million in 2018. Current revenue in F&B is PHP 666.39 2018 to PHP 450.02 million in the current year. Cost and
million. This is a 6% improvement over 2018's PHP 630.70 expenses is PHP 784.09 million. Net income for the property is
million. There has also been an increase of 7% in Rent and PHP 229.77 million. (For further information, see details per
related income—from PHP 476.33 million the previous year to hotel under “Our Brands”.)
PHP 510.65 million this year. The group’s other income for 2019
is PHP 35.97 million. Waterfront Airport Hotel and Casino (WAHC), a consistently
well-performing property, exhibits another growth streak this
While we continue to improve our revenue, costs and expenses year. Gross revenue is PHP 445.98 million in 2019 versus PHP
are another important consideration. The group’s cost & 424.03 million in 2018–a 5% increase. The hotel’s Rooms
expenses have been reduced this year by 1.01%, improving from revenue increased from PHP 170.73 million the previous year to
a total group figure of PHP 1.39 billion in 2018 to PHP 1.38 billion PHP 183.87 million in 2019—an 8% rise. Its F&B revenue also
in 2019. Group GOP has markedly improved by double demonstrated growth, increasing from PHP 80.44 million the
digits—up 23%. GOP rose from PHP 459.44 million in 2018 to previous year to PHP 82.04 million in 2019—a 2% growth rate.
PHP 563.37 million this year. This year’s net income is PHP Rent and related income is PHP 165.12 million, a growth of 5%
434.40 million, a 488% recovery from a net loss of PHP versus PHP 157.58 million in 2018. The property’s other income
-111.93 million in 2018. is PHP 14.94 million. Cost and expenses added up to PHP 228.04
million, reflecting a 0% growth rate versus the past year’s PHP
The unwavering dedication of our teams in each 228.89 million, which means the property has managed to
of our provincial properties, each having its control its costs effectively. This year’s GOP is PHP 217.93
own strengths and competitive advantage, million, rising by 12% from PHP 195.15 million the previous year.
is reflected in the figures of each hotel. Net income in 2019 is PHP 140.79 million, a remarkable
double-digit increase of 40% in comparison to PHP 100.61
Waterfront Cebu City Hotel and million generated the previous year. (For further information,
Casino (WCCHC) has see details per hotel under “Our Brands”.)
succeeded in delivering
revenues past a billion Our pride in Davao City, Waterfront Insular Hotel Davao
pesos for the third (WIHD), generated gross revenue of PHP 253.81 million. This
straight year, and has means a growth rate of 5% versus PHP 240.88 million in 2018.
25
. The hotel has also bolstered its Rooms revenue by 10%, from PHP 102.18 and are ever more assured in our capability to turn around any scenario into an
million in 2018 to PHP 112.76 million this year. F&B revenue grew from PHP opportunity. Through the years, we have proven that our organization has the
132.70 million the previous year to PHP 133.23 million this year—an increase of leadership skills to stay strong and deliver on commitments, as well as to thrive
PHP 0.53 million, even though the growth rate has been computed at a 0% or even as we navigate different industry climates.
level figure. The property’s other income grew by double digits at 30%, from
PHP 6 million in 2018 to is at PHP 7.82 million in the current reported year. Its Marketing and communications is another strong point of our organization. Our
cost and expenses is at PHP 220.30 million. GOP is PHP 33.51 million. NOP marketing campaigns in 2019 echoed the optimistic spirit that our hotels have
increased by 14% at PHP 19.73 million in comparison to PHP 17.33 million brought this year. WCCHC, for instance, started strong in January with the
recorded in 2018. (For further information, see details per hotel under “Our Philippine South’s grandest festival celebration, the Sinulog, by preparing a
Brands”.) month-long series of exciting and fun-filled promotional activities. For the
season, the hotel introduced traditional Sinulog dancing at its hobby as a
The Manila Pavilion Hotel (MPH), already renamed as Waterfront Manila cultural highlight, offered sumptuous event-aligned dining promos, and an
Hotel & Casino, is, as mentioned, currently being rebuilt, in keeping with our amazing Cebuano-themed feast at UNO. This continued auspiciously, as the
plans to bring our market an all-new and more captivating Waterfront hotel greeted Chinese New Year with exciting presentations and festivities,
experience. While last year’s business interruption due to the unforeseen fire whose photos landed on the front page of the top local newspapers.
incident stalled our initial plans for a full reopening, we have pivoted and Throughout the year, our flagship property featured fashion events, awards
decided to move forward full steam with an entirely new concept—a nights and other relevant themed activities that created interest and publicity.
redesigned and revitalized hotel that exceeds all standards in its class. Our other provincial properties, WAHC and WIHD, were similarly on track for
the entire year’s seasonal marketing and promotions goals as well as
The construction of the hotel proceeds to transform it into a modernized and CSR-related or community initiatives which have become the signature of our
updated historic landmark with ultramodern facilities, new dining experiences, hotels. (For more details per hotel, please see the section on Marketing
luxurious stays and dynamic possibilities. This vision for our Manila property Highlights.)
paves the way for an expanded clientele, assuring new revenue streams for
business through its exciting offerings being an all-new asset. Our brand messaging stays on track—conveying that Waterfront Hotels are “at
the center of it all”, whether it’s about luxurious stays at the heart of the
The Waterfront group remains committed, across all its properties, to its Philippines’ urban and resort capitals, major corporate events, entertainment,
signature Filipino brand of service. We are proud of our globally-oriented and conventions, personal celebrations and more.
world-class Filipino image, adding this unique touch to all of our hotels. We
have the ability to convey the local hospitality that is ingrained in Filipino Our on-the-ground events and marketing campaigns go hand in hand with
culture. At the same time, we balance it with our international flair—the ability online strategies, as we recognize the ever-increasing value of online content
to look outward, and be at par with the very best global standards. Through and presence. Through the synergy of new experiences linking campaigns and
this, we have earned a loyal following of both local and international guests. events with our online marketing efforts, we ensure that we expand our reach
and address our market effectively.
Each property is situated in a prime area and is dedicated to delivering the best
value to our guests, location-wise, price-wise and amenities-wise. This The group’s online channels are a vital part of our infrastructure and
dedication to an elevated standard with all the conveniences in place ensures distribution. Online engagement is the next frontier in terms of consumer
that our total product and service value offering is unmatched, priming each access—crucial in both marketing and expansion. Guest preferences are ever
property to be among the best in its class. increasingly shifting towards online-driven information gathering and
bookings. Our company makes sure to capitalize on this trend by investing
We remain confident in our ability to lead through all challenges and adversity, resources and diverting operations to cater to the new web-based influx of
26
inquiries and booking demand. airport infrastructure, aggressive international marketing via
various independent agencies, a political climate that favors
Our online performance reflects our company’s effectiveness in provincial growth and increased tourist engagement in these
tapping such platforms and programs to bring in more revenue destinations contribute to the success of these properties.
channels. Our website is one of our primary touch points for the
consumer and it is also one of our largest growth engines. It is an The re-selling and cross-selling strategies implemented among
efficient tool for providing easy information and for consumer our properties are reliable engines for growth as well. They are
activation, or receiving bookings. Our mobile app and various tested approaches that contribute to and maximize sales
other online distribution channels are other avenues for our opportunities. We have created an integrated marketing system
guests to reach us. Each platform contributes to our among our properties. This is designed to provide more options
ever-expanding online presence. (See Expanding Distribution for the guest, making travel more convenient in multiple cities or
for more data on online performance in 2019.) locations, and it benefits Waterfront with more opportunity for
revenue. Our re-selling and cross-selling integrates the best of a
Through recent years, technology-enabled booking facilities seamless experience for the customer, while ensuring that we
have proven their value in strengthening our company. They are adequately leverage all opportunities brought about by
showing the way with regards to innovation as a strategy for operating a nationwide hotel chain. This strategy also enhances
solidifying one’s leadership position. We remain dedicated to customer loyalty and increases their brand engagement.
enhancing our technology-driven strategies to ensure that we
continue to harness the power of online platforms to widen our In order to constantly enhance product quality, we consider the
consumer base and bring more people closer to the Waterfront training of our people—whom we call our Peers—a high priority.
brand. This is vital to maintaining our service above industry standard.
We consistently exceed annual required training hours for
In 2019 we continue to demonstrate our resilience and ability to nearly all key positions. The Waterfront brand value endures
bounce back from adversity. In the past year, we were able to through our people. Our service is the ultimate touch point to
leverage our talented pool of people, our expertise—having convey our Filipino heritage, alongside a global sensibility that
over twenty (20) years’ experience in the industry and encompasses the experience of convenience, practicality,
being highly adept in addressing the local market. We tech-savviness and luxurious modernity.
also leveraged our vast network of online and offline
partners—a foundation of strong relationships. In order to maintain our company’s health, cost control is
another vital priority, reflected in our decisions and operations.
We continue to be mindful of the opportunities We particularly focus on energy, sales and manning costs.
provided by the robust and growing global
tourism industry, which continues to Our energy-saving measures consists of our optimal thermostat
expand year on year, and is still setting, effective preventive maintenance, proper handling of
growing as of 2019 figures. equipment at function rooms, monitoring of electricity use and
avoidance of wasteful practices. The consistent implementation
Tourism interest continues to of these measures add up to significant energy cost savings.
be high in Waterfront’s
provincial hubs. For manning cost control, Waterfront’s Early Retirement
Improvements in Program continues to be implemented. Peers are given the
27
option to take advantage of an attractive package that enables them to retire and economic expansion. We strategically leverage our location advantage in
earlier. This is meant to be a win-win situation and a way of harmoniously order to increase customer loyalty and market share. We continue to envision
streamlining our workforce. expansion by reviewing opportunities and strategies to harness the true value
of our facilities and real estate assets. On-going efforts to improve our sites is
In order to reduce cost of sales, we leverage our suppliers, employ integrated still part of our priority as a group and organization.
bulk buying strategies, effectively negotiate long-term supply agreements,
strictly limit spoilage and wastage in all departments, conserve all aspects of Waterfront is a proud world-class hotel brand based in the Philippines, and we
our resources and engage in effective large-scale planning and resource lead the way in providing an integrated experience of beautiful
management. accommodations, entertainment, convention facilities, wellness, dining and
business convenience. As a strong Filipino hotel chain and trusted brand, we
Cost center management is high priority in our operations. Considering our rate contribute to the country’s economic growth by providing a unique
of growth, multi-city properties and scale of operations, our costs have been Filipino-inspired experience category for local and international guests.
consistently well-managed. As previously mentioned, consolidated costs and
expenses of our hotels is PHP 1.38 billion, a reduction of 1% versus the previous The Waterfront experience is something that is unique and a powerfully
year’s PHP 1.39 billion. This year’s total costs and expenses for our subsidiaries presence country-wide. We are able to provide our guests with a greater
is PHP 22.94 million. This is a 2.1% decrease from the previous year’s PHP number of services and options, all with the assurance of Waterfront’s
23.42 million. signature quality. Waterfront is, as our slogan states, the center of it all: a
business hub, an accessible meeting point, a recreation center, an
entertainment destination, a MICE-friendly institution and a wellness and
Overall energy costs for the group in 2019 is PHP 272.63 million, a double-digit dining destination in one, offering the best possible range of options for all
decrease of 11% from PHP 306.05 million in 2018, indicating efficient types of guests.
management. Personnel costs decreased from PHP 299.57 million in 2018 to
PHP 280.99 million in 2019, a drop of 6%. Hotel Performance
F&B costs for the year is at PHP 228.80 million, compared to PHP 231.06 million Our industry leadership and decades of experience in the hospitality sector
in 2018, a reduction of 1%. Repairs and maintenance cost is at PHP 76.39 contributes to our hotel chain’s resilience and ability to overcome challenges.
million. Other costs are at PHP 443.01 million, an increase of 7% vs. 2018 PHP We consistently implement industry best practices, as embodied in our
415.54 million. Consolidated rent costs are at PHP 33.65 million, a decrease of efficiency in resource management, aggressive and innovative online
23% versus PHP 43.68 million in 2018—a 23% reduction. Rooms costs for the expansion, targeted and creative marketing, and strategic cost control
group this year is at PHP 40.95 million. measures without sacrificing quality and dedication to keeping the excellence
of our product at all touch points. All this, and our ability to convey the signature
We balance our cost control objectives with marketing and efforts to enhance Filipino warmth and hospitality in every product we offer, have all contributed to
our product quality, both software and hardware. While we understand the our success in 2019.
importance of cost control, we also see to it that we invest sufficiently on
product improvements. For each property, we have ensured that all We have been keen to leverage our strong organization and talented people,
infrastructure is sufficiently maintained, connectivity (WiFi and bandwidth), and our foothold in key cities to cushion the impact of the interruptions that our
operational and call systems and other technologically-based systems are business has faced. Our hotels have done this successfully, and even managed
up-to-date and well maintained. to demonstrate unprecedented performance records in important areas. We
ended the year with impressive growth in many key indicators. thanks to our
Our well-known hotels are located in the Philippines’ principal hubs for tourism provincial properties.
28
In 2019, Waterfront posts remarkable growth and commendable billion in 2018. Our subsidiaries, Waterfront Wellness,
overall performance. The general growth trend of the previous Waterfront Food Concepts and Mayo Bonanza, Inc. generated a
year’s continues to reflect in the highlight results of our total gross revenue of PHP 15.51 million in 2019. Group GOP is at
provincial hotels. We credit this to the cumulative advantages PHP 563.37 million, a significant increase of 23% compared to
rendered by the long-term expertise in the field, proper PHP 459.44 million the previous year. Consolidated net income
management of our resources, and the optimization of our is PHP 434.40 million.
strengths and talents. These have enabled us to quickly bridge
gaps brought by unexpected events and allow a path to a Waterfront Cebu City Hotel and Casino (WCCHC) accounts
stronger organization with our talented Peers leading the way. for 64% of total hotel revenue this year. This reflects the
strength and dominance of our flagship property. It has since
As a constantly evolving organization, we place a high priority crossed the billion-peso mark and continues to build on its
on driving a culture of innovation. We constantly seek to provide success. Gross revenue is at PHP 1.23 billion, up 10% from PHP
fresh experiences and interesting new options that drive 1.12 billion in 2018.
interest and loyalty in our market. Every innovation effort is an
opportunity to re-energize our brand. Market share growth rate this year against direct competition is
12.93%.
The soon-to-rise Waterfront Manila Hotel & Casino, while still
undergoing its transformation, will pave the way for something Manila Pavilion Hotel—now Waterfront Manila Hotel and
better and grander. It will be a model for Waterfront’s continued Casino, temporarily suspended operations in early March of
evolution and innovation—its infrastructure a testament to our 2018. Today, the hotel is currently undergoing reconstruction
brand’s constant revival and renewal. with a completely new design and vision to take it forward. (See
details under Our Brands.)
We innovate not just through rebuilding structures, but also by
integrating new technology-driven channels to drive Waterfront Airport Hotel and Casino (WAHC) contributes the
productivity. Our management’s strong commitment to second highest share among our properties. This year the hotel
building an ever-increasingly efficient organization is an was responsible for 23% of hotel-generated revenue.
important component Waterfront’s strength and Consistent on its impressive growth trajectory, WAHC
enduring brand value. We are bridging traditional generated PHP 445.98 million in 2019, a growth of rate of 5%
channels with new, exponentially growing over PHP 424.03 million in 2018.
technological avenues, ensuring the extension of
our brand into the online space, and the The hotel’s growth in market share this year is 46.04%. Its
careful curation of our brand as we explore occupancy rate of 95.92% is the highest among its direct
digital platforms and assets. competition.
Our culture of resilience amid Waterfront Insular Hotel Davao (WIHD) has contributed 13%
change is refleced in our growing of total hotel revenue. Gross revenue in 2019 is at PHP 253.81
consolidated gross revenue million, versus PHP 240.88 million in 2018—up by 5%.
for our properties which at
PHP 1.94 billion, a rise of WIHD’s market share growth rate against its direct competition
5% versus PHP 1.85 is currently at 9.85%. Its occupancy rate is at 83.42%, the
29
highest in its class.

2 0 1 9 Y T D G S I S U M M A RY
All our provincial properties have increased their revenue compared to the past
Rooms F&B C&E Overall Hotel Experience
year. (See further details per property.)
4.64
4.63
4.62
4.61
4.57
4.43
4.42
4.34
4.12
4.02
3.80
Guest Satisfaction
3.59
The Guest Satisfaction Index (GSI) in 2019 shows an overall satisfactory
performance for each of our hotels. The system sets 4.00 as the passing mark,
with 5.00 as the highest possible rating.
WCCHC earned an average annual/YTD GSI of 4.60 for its overall hotel
experience—well above the standard passing scores and an improvement of
6.24% in comparison to 4.33 in 2018. Under the Rooms dimension, the hotel
was rated a 4.41 YTD average score for Efficiency of Service—an increase of W CCH W AHC W IHD
10.92% compared to the past year’s rating of 3.98. Staff Friendliness is at
4.43—an increase of 11.38% compared to 3.98 in 2018. Under the guest rooms
rating, the hotel scored 4.17. C&E is at 4.44—an improvement of 0.74% Under Revinate’s Online Reputation System, the properties’ GSI scores are as
compared to the previous rating of 4.41. F&B earned a 4.61 rating—improving follows: Overall rating YTD in 2019 for WCCHC is 4.11. WAHC garnered an
by 0.24% compared to 4.60 in 2018. overall review score of 4.14. WIHD got an overall review rating of 3.82.
WAHC also performs well with ratings above the standard passing level. Under
the Rooms dimension the hotel was rated by guests favorably. It garnered 4.71
2019 YTD ONLINE OVERALL REVIEW RATING
for Efficiency of Service, a remarkable increase of 12.30% over the past year’s
score of 4.19. Under Friendliness of Staff, it earned a high rating of 4.74–an
WCCH 4.11
increase of 11.38% over last year’s score of 4.26. Guest Rooms rating also
increased from 4.16 in the previous year to 4.42 in 2019—a 6.21% rating
WAHC 4.14
improvement. F&B GSI for this hotel remains is the highest in the group for a
third year in a row at 4.64, slightly higher by 0.31% versus the past year’s 4.63. WIHD 3.82
C&E is at 4.15. Overall hotel experience rating for 2019 is 4.66—a jump of 11.91%
in guest satisfaction versus last year’s rating of 4.16.
WIHD reports improved ratings under the Rooms dimension. GSI is at 3.90 for 2.00 2.50 3.00 3.50 4.00 4.50 5.00
Efficiency of Service—an improvement of 22.41% versus 3.19 in 2018. Under

Friendliness of Staff, the hotel’s rating is 3.98—increasing by 22.30% The properties’ online GSI summary for 2019 reflected an overall positive
compared to 3.25 the previous year. Guest room ratings also improved by result, mirrored by high rankings under Tripadvisor. WCCHC’s overall review
19.73%, garnering 3.52 YTD average compared to 2.94 in the previous year. rating from January to October 2019 is 4.11, among 3,611
F&B rating is at 4.43. C&E is at 4.12. Overall hotel experience is rated at 3.68, respondents/reviewers, with a 72% overall positive feedback. WAHC has
increasing by 22.43% compared to 3.01 in 2018. garnered 4.14 overall rating from a total of 2,166 reviews, with a 72% overall
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positive feedback. WIHD has an average rating of 3.82 from a Consolidated Rooms revenue in 2019 is PHP 726.77 million,
total of 1,575 reviews with a 60% overall positive feedback. reflecting a growth rate of 3% in comparison to the previous
Under Tripadvisor, WCCHC ranks 16th out of 144 properties, year’s PHP 704.25 million. Rooms have also contributed
WAHC ranks 9th out of 53 comparable properties, and WIHD substantially to gross revenue this year, providing 37% of our
ranks 13th out of 122 properties. consolidated gross income. Group occupancy rate for 2019 is
64%. Group ARR is PHP 2,069. Consolidated Revpar is PHP
Rooms 1,793.
Waterfront’s guest rooms combine the best of luxurious comfort Beyond convenience in location and ease of modern comfort,
and generous space. These, along with beautiful views that best Waterfront Hotels & Casinos prides itself in providing a room
capture the charm of each hotel’s locality, excellent amenities experience unlike any other. Our spacious suites—consistently
that provide every convenience and tasteful touches in larger than those in similar categories among hotels in our
craftsmanship, design and materials distinguish our guest class—and modern and well-designed amenities satisfy the
rooms as a cut above the rest. taste of the sophisticated leisure and business traveler.
We maintain our excellent standards by constantly updating our We continue to intensify our marketing efforts drive better
amenities and investing in our rooms’ upkeep and maintenance, rooms sales. We are constantly expanding our marketing
always keeping an eye on global trends in guest comfort. channels through online touch points while still exhausting
mainstream marketing avenues, in order to convey our message
We constantly look to make room enhancements and of quality, convenient and comfortable.
maintenance in all our properties, be it extensive or subtle, in
order to captivate our market, which should reflect in our guest Our guest rooms make our guests feel at home, while enjoying a
satisfaction outcomes. Each year, upgrades or subtle distinctly new level of relaxation. Generating consistent positive
refurbishments are distributed across our hotels to maintain a feedback, they are praised for their comfort and
fresh and exciting experience. Our Guest Rooms Assurance spaciousness—our notable large floor area offers far more than
Check for Excellence or GRACE Program works as a the usual space for any city hotel. For guests who desire larger
maintenance program designed to improve product floor areas, our rooms provide that added feeling of relaxation,
quality and guest satisfaction. Such maintenance freedom of movement and luxury. Waterfront gives its guests
program involves an itemized and systematic the rare experience of a home away from home, a private urban
inspection performed in all the hotels guest sanctuary that is generous in square footage.
rooms and hotel areas including the banquet,
dining outlets and public areas. This Our luxury suites stand out for their impeccable interiors. These
ensures that all our facilities and guest suites also boast of a large square footage. They exude an air of
rooms are well kept and maintained contemporary opulence. Their luxe contemporary design
ensuring guest satisfaction not to combines the perks that bring the best of modern relaxation
mention the program is a crucial with intricate details, interesting highlights and rich accents that
component to successful communicate exceptional taste.
hotel operations and
greater profitability. Our business floors and well-designed executive spaces offer
fast connectivity and convenience for elite business travelers,
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giving them a space to conduct work, while creating an environment of cozy source of pride, satisfying the most precarious of customers, and continually
luxury. Their exceptional quality and style—a mix of relaxed taste and serving them satisfactorily with flying colors. Thus, F&B has become one of the
sophisticated chic—makes for a memorable stay for the seasoned business highest contributors to overall revenue, which is a sign that our efforts are
guest. paying off.
Waterfront Hotels & Casinos is also in a position to provide more dedicated Our recently on-boarded chefs bring their respective culinary specialties. Their
room categories that address varied markets and clientele. Our facilities fully expertise has not only enhanced our offerings but also introduce variety and
maximize their spaces, being some of the largest hotels in the country. Whether innovation to our dining experience.
it is an Executive suite with access to the exclusive lounge floor with dedicated
all-day dining and office features, or a posh room at our entertainment area Our F&B, Banquet, and Convention & Events managers and sales deliver
situated conveniently in proximity to our gaming spaces, or an affordable room international caliber management capabilities to our outlets and banquet
category dedicated to our group bookings and MICE-related stays that provide function rooms ensuring quality service and guest experience.
well-appointed rooms at an accessible price point, our flexibility enables us to
address the varying needs of our guests. To promote our F&B outlets, we use a mix of traditional placements and new
media strategies that are becoming the source of increasing engagement and
Food and Beverage patronage. Waterfront employs influencer marketing by inviting prominent
social media ambassadors to spread the word about our themed dining
Our Food and Beverage department remains to be one of the more lucrative promotions and other activities.
area where dynamic programs are made combined with a formidable and
talented team bringing outstanding service. F&B remains an important component of operations and guest satisfaction. It
continues to perform well revenue-wise, generating PHP 666.39 million of
We ensure that our dining outlets constantly have something to offer our consolidated gross revenue for all properties. This figure is a 6% increase from
guests, as food and dining trends change constantly in a fast-paced, globalized the previous F&B gross revenue of PHP 630.70 million in 2018.
and internet-driven world. Our outlets are reinvigorated each year to introduce
new and exciting experiences to our clientele. We have recently refreshed our F&B this year contributes 34% of the entire group’s gross revenue, exactly the
chef’s roster to include more Filipino touches while maintaining the global same percentage as the previous year. We are committed to maintaining the
cuisines and feel for our international guests. Menus were likewise upgraded, quality and excellence of our F&B operations as they from an important
allowing guests even more diverse and unique options. Each professional chef backbone of our brand and guest experience.
lends his or her expertise in creating new ways to experience global as well as
local cuisine. Our Brands
We are also dedicated to continue investment in F&B training, which makes for Waterfront Cebu City Hotel and Casino. This stunning, sprawling and grand
a culture of constant improvement, leading to a dining experience that is property stands unrivaled at the heart of Cebu’s business hub. WCCHC as our
dynamic, distinctive and infused with the flavor of different tastes and cultures, flagship property is a standout choice when searching for the quintessential
yet grounded in Filipino authenticity. stay for both business and leisure in the city. Strategically located at the best
possible prime area—right across Asiatown IT Park and within minutes of Cebu
Our restaurant and lobby lounge menus, being responsive to trends and Business Park—it has an incomparable first-rate location with access to all
constantly reviewed for quality, pique guest interest as well as improve our F&B important city stops. The hotel stands out as an ideal choice for anyone who
revenue. Our Banquet packages, sales and service have been a constant values the best possible combination of a comfortable and luxurious city stay
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coupled with business prestige and convenient access to Net income for the year is PHP 229.77 million, increasing by
transport. approximately 50% over the previous year’s PHP 152.82 million.
The hotel is among the largest in the Philippines, and remains Against its competitors, WCCHC Market share has increased in
the most extensive facility with the highest number of rooms 2019 by 12.93% against its direct competition.
within the Visayas and Mindanao areas. It offers an unbeatable
package of sophisticated business amenities, round-the-clock Waterfront Manila Hotel and Casino (formerly Manila
entertainment facilities and unmatched variety of dining options. Pavilion Hotel and Casino). Approximately two years since the
WCCHC is also a convention hub, whose convention facilities property suffered a huge and unexpected setback as a fire in the
boast among the country’s highest capacities, able to host a property resulted in a suspension of operations, Waterfront
wide variety of MICE-related functions. pushes on with its reconstruction.
Rooms’ revenue for this property in 2019 is at PHP 430.14 As a resilient organization, we have a strong belief in finding
million, a 7% growth from last year’s PHP 400.61 million. opportunity in adversity, and are determined to turn this around
Occupancy in 2019 for this property is 78%—a 1% growth from by engineering a resurgence hotel, to rebuild it better than it
the similarly high rate of 77% in 2018. Revpar is currently at PHP ever was.
2,134—an increase of 9% in comparison to PHP 1,956 in 2018.
ARR likewise demonstrated growth, increasing by 2% from PHP The company has employed the very best teams to ensure that
2,674 in 2018 to PHP 2,719 in 2019. its revival would be nothing less than astounding and
world-class. We are on the path towards our vision of
F&B revenue for 2019 is at PHP 448.90 million, a substantial transforming it into a new structure befitting of its history and
increase of 12% from PHP 400.19 million in 2018. Rent and importance in the Waterfront portfolio—a stunning and powerful
related income is PHP 348.29 million, another growth area landmark in Manila’s cultural heart.
where income rose by 11% versus PHP 313.10 million in 2018.
Gross revenue from other operating departments is at PHP The property is poised for reinvention in the hands of a global
6.77 million, increasing by 15% from PHP 5.89 million in leader. We are working with the world’s top hospitality design
2018. firm, HBA. A multi-awarded firm, HBA brings its extensive global
expertise to the table by redesigning Manila Pavilion Hotel into a
The property’s gross revenue in 2019 is at PHP 1.23 building that is distinctive in form and much larger in scale, a
billion—a significant 10% leap from PHP 1.12 structure that is befitting of its importance among its
billion in 2018. The property has generated international clientele.
revenue past the billion peso threshold for
the third time—building on its The reimagined Waterfront Manila Hotel and Casino sits on its
remarkable milestones in previous prime location as a landmark ready to rise again and present its
years. new offerings to the world. It is designed to be the most
prominent building and most striking example of modern
GOP is PHP 450.02 million, a architecture in Manila’s historic district—a bustling area with a
7% increase from the rich storyline and tourist activity. This vibrant, eclectic tourism
previous year’s GOP of hub is the perfect backdrop to complement its magnificent
PHP 420.29 million. architectural presence.
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Steadfast is our goal for the re-constructed hotel to go beyond what has been versus the previous year’s PHP 2,818.
achieved before, to rise higher and create a brand new unexpected experience
that was not possible with an older property. Guests can expect much more Cost and expenses this year were effectively managed and amounted to PHP
from the hotel’s new features, connectivity systems, guest services, ambiance, 228.04 million, a level figure or 0% growth in costs in comparison to the
business centers, recreational areas, F&B, and others. previous year’s PHP 228.89 million. Personnel costs amounted to PHP 46.65
million. Energy costs 2019 amounted to PHP 54.59 million.
Now that the property has the chance to truly start fresh, Waterfront is taking
advantage of the opportunity to build a new magnum opus for the group—both The hotel’s growth in market share versus its direct competition is 46.04%. It
in architecture and guest experience—a dynamic showcase of its brand, has also achieved the highest occupancy rate in its class.
representing the best of Waterfront’s founding values, and a source of pride for
the Philippines’ hospitality industry in the country's busy capital. (See pictures Waterfront Insular Hotel Davao. WIHD is a beautiful property with stunning
on update of hotel’s construction 2019 under “Waterfront Manila Hotel & ocean-facing views. It is our pride in Southern Philippines, located in Davao
Casino Construction Update”.) City, an urban and business hub in commerce and resource-rich Mindanao. It is
a uniquely designed property that displays the beauty of its natural
Waterfront Airport Hotel and Casino. WAHC is one of the most strategically environment, indulging guests with relaxing landscapes and stunning views,
located hotel properties in the country. In proximity to the modern Mactan while being an oasis of convenience with all the modern amenities of an urban
Cebu International Airport (MCIA), it is the perfect complement to this new stay.
travel hub, the prime international gateway to the Southern Philippines.
The hotel demonstrated growth in several key figures in 2019. Gross revenue
MCIA’s massive improvements, expansion and modernization impact the hotel for the year is PHP 253.81 million, a 5% increase from PHP 240.88 million in
with increased tourist traffic from all over the world. This influx undoubtedly 2018. GOP is at PHP 33.51 million. NOP is at PHP 19.73 million, up 14% from the
requires the convenience of an airport hotel. The property also has the most previous year’s PHP 17.33 million.
number of rooms for a hotel in its class in the area, assuring its ability to cater
to larger bookings. Rooms revenue in 2019 is at PHP 112.76 million. This reflects a 10% growth from
PHP 102.18 million in 2018. F&B revenue this year is at PHP 133.23 million, up by
WAHC is consistently one of our best-performing properties. Gross revenue PHP 529,323 albeit with a growth rate of 0% versus the previous year’s PHP
for the year is PHP 445.98 million, reflecting a growth rate of 5% versus the 132.70 million. Other income for the hotel amounted to PHP 7.82 million in 2019,
previous year’s PHP 424.03 million. GOP in 2019 is PHP 217.93 million. This which means a significant increase of 30% in comparison to PHP 6 million in
signifies a double-digit increase of 12% from 2018’s PHP 195.15 million. NOP 2018.
(after tax) is PHP 140.79 million—a remarkable 40% leap from the previous
year’s PHP 100.61 million. Cost and expenses for 2019 amounted to PHP 220.30 million. Energy costs are
at PHP 30.82 million, an efficient reduction of 8% compared to the previous
Revenue from Rooms is at PHP 183.87 million, up 8% from PHP 170.73 million in year’s energy-related expenses of PHP 33.58 million. Personnel costs for the
2018. F&B income is PHP 82.04 million, reflecting 2% growth from PHP 80.44 property are at PHP 40.12 million.
million the previous year. Rent and related income rose from PHP 157.58 million
in 2018 to PHP 165.12 million in 2019—a 5% increase. Other income for the Occupancy rate in 2019 for this property is 83%—signifying a growth of 4%
property in 2019 is at PHP 14.94 million. versus 79% in 2018. ARR is at PHP 2,339, an increase of 1% compared to PHP
2,311 in 2018. Revpar increased from PHP 1,761 the previous year to PHP 1,951
The hotel’s occupancy rate in 2019 at 96%. ARR increased by 1%, from PHP this year, reflecting a growth rate of 11%.
3,181 in 2018 to PHP 3,217 in 2019. Revpar is PHP 3,086—a growth of 10%
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WIHD’s 2019 market share growth rate in comparison with event was graced by Cebu’s VIPs as well as by Chinese
directly competing hotels is at 9.88%. It also registered the diplomats. The annual grand fireworks display dubbed “Fire in
highest occupancy rate among hotels of its class. the Sky” is a much-awaited highlight to the hotel’s Chinese New
Year festivities, and this year’s show did not disappoint.
Marketing Highlights Waterfront is known for throwing one of the grandest Chinese
New Year festivals in the city. Each celebration is well-attended
Waterfront’s overall messaging embodies the company’s and prominently featured in print and online media.
slogan, “We’re at the center of it all.” Our strategy aims to
channel this message to our market in various innovative ways Easter 2019 at Waterfront was all about a transformation of its
and through different communications media and touch points. function rooms into magical worlds for children, filled with lots of
We as a hotel chain strategically communicate to the consumer treats for all partygoers. The annual Easter egg hunt featured
that we are a one-stop destination for our all guest and patrons’ chocolate-filled eggs hidden around the hotel, and an entire
needs. Each property has its own unique way of conveying this afternoon of activities and entertainment options tailored for
message, tailored to its own market and audience. walk-ins, guests and their families, such as face painting and
inflatable rides.
Our flagship property, Waterfront Cebu City Hotel and
Casino, stays true to its prominence in the industry by being a Having served as the preeminent venue of the grandest events
creative initiator of events and being a desired venue for many in Cebu, such as wedding receptions, debuts, corporate
culturally and socially relevant initiatives. It was hailed as Cebu’s conferences, brand launches, fashion shows, sold-out concerts
Best Events Venue of 2019 by the Sun.Star Best of Cebu and other red-letter events, the hotel continues to be the
Awards, an annual list of top places and products as compiled by beating heart of its lifestyle. Cebu Style Week 2019 was held in
one of the province’s most patronized newspapers and the WCCHC. In July, the celebration came with a back-to-back
Philippines’ top community paper, Sun.Star Daily. fashion show in celebration of two historic events: Pride Month
and American independence. The show featured the
WCCHC kicked off January with an exciting and fun-filled show-stopping designs of some of the Philippines’ most
lineup of month-long promotional activities. This series sought-after and talented designers.
included presentations like Cebu’s internationally
famous Sinulog dancing at the hotel lobby—a cultural The Cebu Wedding Expo, the city’s top bridal event, was taken
spectacle that entertained both patrons and to grander heights in 2019 when Waterfront again hosted the
guests. It also included unique dining themes event for the fifth straight year. Event highlights included
promoting local fare, with a well-reviewed exhibits and workshops, capped off by a Filipino-inspired
Cebuano cuisine feast at UNO as the fashion show that featured the country’s most acclaimed
month’s dining feature. up-and-coming designers. The wedding expo generates a
yearly buzz and markets the wedding packages of the hotel.
Chinese New Year 2019 was
greeted with a grand celebration WCCHC hosted the Best of Cebu Awards Night. Now on its sixth
featuring traditional lion and year, this annual awards event curated and organized by
dragon dances at the Sun.Star Publishing is one of the biggest gatherings of Cebu’s
hotel’s main lobby. The best brands, products and services. Waterfront’s Pacific Grand
Ballroom was transformed into an exciting expo, creatively
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showcasing the creative booths of the nominees and winners. Waterfront was Waterfront Airport Hotel and Casino keeps its dynamic atmosphere going
awarded 2019’s Best Events Venue as well as the second prize for the Best by introducing timely events during the year that attract interest and generate
Booth/Exhibit. engagement. Beginning in January, the hotel staged its own Sinulog
presentations by bringing in Sinulog dancers to provide cultural entertainment
WCCHC’s annual support of Pink October has become one of its charitable at the hotel lobby to signal the festival season.
traditions. The hotel created a campaign with the hashtag
#WaterfrontGoesPink, with promotions and packages benefiting breast cancer WAHC’s Chinese New Year celebration was heralded by inviting local media to
advocacies. The campaign partnered with local establishments, ICanServe witness the preparations and festivities. The hotel also took the opportunity to
Foundation and Clothes for Life to organize its annual charity ball, the Pink Ball. introduce its latest additions to its team: a new executive chef, F&B manager
The gala event featured the creations of renowned Filipino designer Jun and a new safety and security manager.
Escario, as worn by fashion icons, models and the brave cancer survivors of
ICanServe. Easter Sunday was a big celebration for the hotel as it hosted a party with
games and a grand Easter egg hunt.
As a show of appreciation for the hotel’s top partners in the past year, sister
properties Waterfront Cebu and Waterfront Mactan organized a lavish party One of the unique celebrations of Mactan Island is its famous Kadaugan sa
highlighted by a Venetian masquerade theme at WCCHC’s Mediterranean Hall. Mactan festival. WAHC supported this community celebration by sponsoring
The event paid homage to all partners who make Waterfront’s events, entertainment on one of the festival’s nights as well as by being the hotel
marketing and sales programs successful, including top Cebu and sponsor of the Kadaugan sa Mactan Golf Tournament.
Manila-based corporate accounts, travel agencies, event producers, wedding
planner and other business or collaborative partners. Waterfront Mactan also celebrated Halloween by putting together a fun Trick
or Treat event for over one hundred children beneficiaries from Gloria Maris.
On August of 2019, members and friends of the Cebu arm of prestigious
international gastronomic society, the Chaine des Rotisseurs, convened at the The Christmas celebration at WAHC was memorable and joyful as the hotel
Pacific Grand Ballroom of WHCCHC for a night of fellowship, music and dining. unveiled its golden Christmas tree setting to an exclusive group of VIP guests
With the night’s theme “Chocolat Decadence”, the talented culinary team of and media. The hotel continued its holiday celebrations by hosting 2019’s
Waterfront prepared a menu of exquisite dishes with chocolate as the focal “Tourism Night” alongside Lapu-Lapu City’s local government unit (LGU) and
point. other tourism stakeholders. It was a night of great food and entertainment in
praise of Cebu’s booming tourism industry. Christmas Day was celebrated at
Waterfront Cebu’s annual Christmas tree lighting has become a revered the hotel through its annual Santa gift-giving activities at the hotel lobby held
holiday tradition in Cebu. It kicks off the December festivities with its on December 24 and 25. This brought a joyous presence and merry ambiance
one-of-a-kind Christmas tree displays that are always a creative surprise, to the hotel, highlighting giving and generosity—the essence of the season.
transforming the hotel into a themed wonderland. The hotel’s magnificent
settings and decor have become an annual draw for onlookers, patrons and Waterfront Insular Hotel Davao showcased its magnificent property and
guests, who explore the lobby lounge and dining areas for their ingeniously hosting capabilities through the event “Beautiful Beginnings at the Waterfront
crafted tableaus and special settings. The 2019 tree lighting ceremony was 2019”, a wedding and celebrations fair. From May 30 to June 1, 2019, the fair
spearheaded by WCCHC’s General Manager, Anders Hallden, several VIP brought together thirty of Davao City’s most sought-after wedding and events
guests and representatives of the hotel’s chosen beneficiaries or charities. For suppliers to help couples prepare for their big day.
entertainment, the hotel brought in Idol Philippines 2019 winner Zephanie and
Westlife’s former member, international talent Brian McFadden. The admission-free event featured the latest trends in weddings, from bridal
floristry to destination wear, banquet themes and concept details. WIHD was
36
able to share its multifaceted options for wedding events, in

collaboration with local events businesses.
WIHD also celebrated the thirty-fourth Kadayawan Festival

featuring local cuisine and arts. On August 8, 2019 the hotel
officially launched its Visual and Wearable Art Exhibition curated
by local visual artists, designers and florists.
WIHD’s celebration of Pink October was in partnership with the

Municipality of Loreto, Agusan del Sur and Carousel
Productions, through which it brought the candidates of the
2019 Miss Earth pageant as the special guests of an exclusive
charity gala. The Miss Earth candidates were there to support
the charity event and help raise awareness for breast cancer.
The event featured a pink-themed art exhibit portraying
different images of women created by the BaiHinang group of
women artists.
Each property’s marketing efforts is tied with extensive public

relations strategies through multiple media channels to
strengthen and effectively direct their impact to the desired
target audiences. Waterfront’s marketing programs also
highlight its strong community ties and involvement in local
culture, and its prominence as a hub and fulcrum of activity,
staying true to its mantra of being the destination “at the
center of it all”.
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MARKETING HIGHLIGHTS
Waterfront Cebu City Hotel & Casino
Sinulog 2019
One of the grandest and most awaited festivals in the
country- Sinulog 2019 was celebrated by the Hotel with an
exciting and fun-filled lineup of promo and activities whole
month-long including the traditional Sinulog dancing at the
lobby, sumptuous dining promos, and an amazing Cebuano
feast at UNO.
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Chinese New Year

Waterfront Cebu City Hotel & Casino ushered in the Chinese
New Year in style with traditional Lion and Dragon dance held at
the hotel’s main lobby led by the hotel’s general manager
Anders Hallden, together with Chinese Deputy Consul General
Wu Xiaomin. The celebration was capped with a grand fireworks
display at the hotel’s main entrance dubbed “Fire in the Sky”,
which has become one of the city’s annually anticipated
highlights in celebrating the coming of the New Lunar Year.
39
Cebu Style Week - Pride and

4th of July Celebration.
July 2019 came with a back-to-tack fashion show extravaganza in
celebration of two historic events: Pride Month and American
Independence. All roads lead to the two-part fashion as it
featured the show-stoppong and over-the-top designs of the
best talented designers in Cebu including Rei Escario, Philipp
Tampus, Mike Yapching, and many more.
40
Best of Cebu Awards Night

On its 6th year, SunStar Cebu’s annual Best
of Cebu party, which is one of the biggest
gatherings of Cebu’s best brands, products
and services, took place in the Pacific Grand
Ballroom of Waterfront Cebu. Adorned with
highly creative booths of the contest winners
including Waterfront Cebu, the Hotel not only
bagged the Best Events Venue but won the
second prize for the Best Booth/Exhibit as
well.
41
Top Accounts Party
To celebrate, honor and recognize its top

partners of the past year, the two sister
properties, Waterfront Cebu and Waterfront
Mactan, organized a lavish party with a classic
Venetian masquerade theme at its
Mediterranean Hall.
42
Chaine Des Rotisseurs

Cebu’s gastronomic sociey, the Chaine des Rotisseurs,
convened at the Pacific Grand Ballroom of Waterfront Cebu City
Hotel & Casino for a night of fellowship, music, and food with the
night’s theme “Chocolat Decadence”, the talented culinary team
of the premier city hotel curated a course of exquisite dishes
with chocolate as its main ingredient.
43
Mooncake Festival
In celebration of 2019’s Mid-Autumn Festival, Waterfront Cebu offered a wonderful

and delectably array of moon cakes that guests may relish.
Traditionally launched with the hotel inviting friends from media for a preview of the
mooncakes that come in five different flavors: coffee, red bean, black sesame, green
tea and lotus.
44
Wedding Expo
On its 5th year, the Cebu Wedding Expo has been taken to
grander heights than ever before. The 2-day expo featured a
more inclusive and interactive line-up of exhibits and workshops
that aim to help future brides-to-be and grooms-to-be achieve
their dream wedding. The expo capped off with a
Filipino-inspired fashion show that featured designs of the
country’s up-and-coming designers such as Mak Tumang,
Cheetah Rivera, and many more.
45
Pink October
The premier city hotel, Waterfront Cebu City Hotel &
Casino, kicked off its month-long
#WaterfrontGoesPink campaign with its annual
charity ball, dubbed as the Pink Ball at the hotel’s
Pacific Grand Ballroom. The event, which was in
partnership with Oro China, I Can Serve Foundation
and Clothes for Life Inc., featured the designs of
renowned Filipino designer, Jun Escario, and the
outstanding women of I Can Serve.
46
Christmas Tree Lighting

To usher in the Yuletide season, Waterfront Cebu prepared an extravagant tree
lighting that unveiled its one-of-a-kind tree display that featured an exceptional
22-Christmas tree display where guests surely enjoyed making their way through the
hotel’s magical forest.
The annual tree lighting ceremony was headed by Waterfront Cebu General Manager
Anders Hallden and celebrated with distinguished guests and top class entertainers.
47
New Year’s Eve Party

The Hotel kicked off the New Year festivities with a
lavish and epic countdown party that got everyone
dancing the whole night long. With a 70’s-inspired
party, dubbed as “Blast from the Past”, the party-goers
surely had the time of their lives as they enjoyed the
night’s free-flowing cocktails, fun-filled activities, and
show-stopping performances.
48
Waterfront Airport Hotel & Casino
Sinulog Celebration 2019

Waterfront Mactan celebrated Sinulog weekend by
bringing in Sinulog dancers at the Waterfront Mactan
lobby.
49
Chinese New Year

Waterfront Mactan celebrated Chinese New Year (Year of the
Earth Pig) with media friends. Waterfront Mactan has also
introduced the new additions to WAHC family: Executive Chef
Tristan Encarnacion, Food & Beverage Manager April Pinay,
and Safety and Security Manager Pancho Ramirez.
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Earth Hour
Lights were turned off in support of the world’s biggest
climate change campaign.
51
Easter Egg Hunt

A special day for the kids for Easter Sunday! Waterfront
Mactan hosted a special Easter Sunday party, complete
with games and Easter Egg Hunt!
52
Kadaugan sa Mactan
Celebrating the Victory of Mactan with Kadaugan sa Mactan Golf Tournament.
53
Top Accounts Party

Waterfront Mactan and Waterfront Cebu in a joint party,
celebrated the Top Accounts.
54
Halloween Party
Waterfront Mactan hosted a Halloween party! Trick-or-treat,
costumes and games were organized for more than 100 kids at
Gloria Maris.
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Christmas
Tree
Lighting
Waterfront Mactan unveiled the glorious golden Christmas Tree to the exclusive guests and
media. A night of good food, entertainment and laughter were shared by Waterfront Heads
and guests.
56
Tourism Night
Waterfront Mactan celebrated with Lapu-Lapu City in a
night of celebration. Together with LLC LGU and other
LLC Tourism stakeholders, Waterfront Mactan
celebrated a night of food and laughter in celebration of
the City’s booming Tourism industry.
57
Christmas Nightly Entertainment

Annual Santa gift-giving at the Hotel lobby on December 24-25, 2019.
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New Year’s Eve Countdown Party

Guests flocked the Hotel lobby for the Annual NYE Countdown Party attended by
influencers, Hotels’ Department Heads, peers, and guests.
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Waterfront Insular Hotel Davao
Kadayawan Fete
Waterfront Insular Hotel Davao celebrated the 34th
Kadayawan Festival with a tribal fusion of local cuisine and an
appreciation of the local arts officially launching its Visual and
Wearable Art Exhibition curated by visual artist Elenita
Dumlao, accessory designer Kathryn Fanlo and florist Jade
Polizon.
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Beautiful Beginnings at the

Waterfront 2019
The Hotel hosted its wedding and celebrations fair from bringing
together 30 of Davao City’s most sought after wedding and
event providers to help couples prepare for their big day
featuring latest trends in the wedding and events scene from
bridal floristry to destination wear, banquet themes and concept
details. It also gave away exclusive hotel perks for the whole
duration of the fair.
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Our Subsidiaries are valued at PHP 6.54 million.
Waterfront’s subsidiary companies form a veritable support network and Waterfront Hotel Management Corporation was established to oversee the
complement to its hotels by providing essential services and products that thrust of instituting an all-Filipino chain of hotels in the country and to manage
enhance our main brand offerings. They are independent brands in themselves local and independent hotels. The company is currently seeking new
too on the consumer-facing side, and are sources of important streams of investment and expansion opportunities.
brand value and revenue.
Waterfront Horizon Corporation (WHC) successfully established the
These companies make the Waterfront organization much more dynamic and country’s first ever integrated hotel reservations and booking system featuring
agile, able to innovate and unlock more business opportunities. Total revenue a full-service, round-the-clock, 7-days-a-week Central Reservations Office.
from our subsidiaries in 2019 is PHP 15.51 million, up 13.96% from PHP 13.61 This centralized automated system with full contact center support offers a
million in 2018. better way of servicing our wide global clientele, giving them ultra-convenient
booking while assuring us of better ability to track our business.
Waterfront Wellness Group, Inc. (WWGI) offers a sports and recreation
facility in our Cebu City property with top-of-the-line equipment and 24-hour Mayo Bonanza, Inc. In partnership with Philippine Amusement and Gaming
fitness with in-house spa and wellness services. In 2019, Citigym achieved a Corporation (PAGCOR) aggressively taps into slot machine segment
gross revenue of PHP 13.30 million, up 16% from PHP 11.42 million in 2018. GOP potentials in the gaming market. Under contract with Atlantic Dynamo of the
is PHP -0.86 million. NOP is PHP -1.08 million. Costs and expenses are at PHP British Virgin Islands, it leases space and VIP slot machine arcades for
14.16 million, a reduction of 25% from the previous year’s PHP 18.90 million. PAGCOR. It owns a 1,200 square meter VIP arcade housing 240 slot machines
in Sta. Cruz, Manila.
Gym membership revenue is at PHP 10.06 million, an increase of 24% versus
2018’s PHP 8.11 million. Our wellness facility generated revenue of PHP 1.87 Waterfront Promotions LTD and its wholly-owned subsidiary Club
million. Pool revenue is at PHP 0.87 million, growing by 11% compared to the Waterfront International Limited, Inc. was founded to focus on the international
previous year’s PHP 0.78 million. Other income generated by WWGI is PHP 0.51 gaming market, promote Philippine casinos and organize special groups to
million. participate in PAGCOR’s Foreign High Roller Marketing Program.
We intend to innovate further and create enticing packages for gym Our Strengths
memberships, introducing wellness programs that are on-trend and offer great
value. Waterfront capitalizes on its strengths to create a strong and stable foundation
on which to ground its culture and guide its operations, as well as to serve as
Waterfront Food Concepts, Inc. (WFC) streamlines sourcing and production the driving force to propel the company forward and keep it a notch above the
for our food outlets, creating fresh, scalable, high-quality culinary products and competition. The Waterfront brand offers a unique value proposition: the
improving the efficiency of our dining options. It is the largest industrial supplier integrated experience of luxury, leisure, comfort, convenience, service
of fine baked goods in Cebu with a loyal base of institutional customers. In 2019, excellence and an unsurpassed national presence.
WFC posted gross revenues of PHP 2.21 million, an increase of 1% versus PHP
2.19 million in 2018. GOP is at PHP -3.84 million. Net income is at PHP -3.90 Leading operator of first class Filipino hotels in the country.
million.
We are the largest Filipino-owned group of top-rated hotels and convention
Costs and expenses are at PHP 6.05 million. Total assets under the company facilities in the Philippines. We provide the biggest gaming space to PAGCOR
62
in our country’s prime locations. Our positions in key cities in the at the same time a benchmark of value and quality.
Philippines give us leverage to market our brand locally and
internationally, plus cross-sell our hotel services to travelers in We cater to both local and international guests, providing the
the local market. best hotel experience to our various markets and maintaining
internationally competitive rates. We value and nurture our
Unfaltering hotel performance. Filipino customer base as well. Locals are our top market,
contributing 56% of our total patronage. This means a
Our consistent operating record and integrity speaks for our consolidated 149,133 room nights in 2019 for all Waterfront
brand. We make sure that all our profitability markers are at par properties. PHP 371.60 million out of our total revenue in all our
with our targets. We aim to serve our shareholders with properties is from Filipino guests, with an average room rate of
conscientious effort to maintain top value through top PHP 2,491.77. Per property, Filipinos comprise 48% of our
performance, navigating industry and economic factors. Our guests at WCCHC, 54% of guests at WAHC, and 85% of WIHD’s
growth is evidenced by profitable figures and the upkeep of our guests.
reputable brand image.
Our second biggest market is Japan, contributing 60,299 room
Proven and experienced management team. nights, PHP 167.90 million in revenue at an average room rate of
PHP 2,784.53. Japan makes up 23% of our guest profile based
Our top management is passionate and highly driven. We have on geographic origin. Korea (12%), USA (5%), China (4%),
an experienced and qualified team with successful track Australia (1%), Great Britain (1%), Canada (1%), Singapore (<1%)
records, spread across our different departments. This team has and India (<1%) round up the other nationalities in our top ten
successfully developed and enriched our business through patronage based on country of origin.
consistent performance, innovation and the establishment of
strategic alliances that enable us to weather difficult times in the We also have a solid network base of corporate clients and local
industry. and international travel agencies. We strive to achieve
continuous growth through nurturing our Manila Sales and
We continually improve our capacities by participating in Reservations Office teams who sell our Cebu and Davao
international trainings and seminars, keeping pace with properties and also facilitate the cross-selling of services
new trends and applying these locally. Such practices between hotels.
result in a global outlook, which is incorporated in
our operations. To further grow our customer base, we have entered into
profitable agreements with domestic corporate clients to
Wide customer base. provide rooms for their employees at customized rates during
special booking periods. Through our ability to provide flexible
Our brand appeals to a broad market, terms, we intend to develop brand loyalty and create a strong
whether it is tour groups or premium referral network.
leisure travelers. This is because
we are able to integrate many Our company continues to optimize technology as a means to
types of experiences into reach a wider range of customers. We set up an e-commerce
our hotels. We are flexible system that allows us to develop and reach out to new market
and convenient, while segments and makes bookings and payment fast, convenient
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and easy. In addition, we are in partnership with several alternative distribution services catering to the needs of our hotel operations.
systems and a global distribution system to expand our marketing reach.
Our systems, procedures, and activities are supported by a complete and
Responsive to dynamic market change. comprehensive set of operating manuals that are strictly adhered to by all our
companies.
Our competitive position is strengthened by our dynamic organizational
philosophy, as well as our ownership structure. We are flexible and highly Strategic locations.
responsive to market factors, able to make critical decisions and interventions
at a quicker pace. Our facilities and wide range of services as well as the Our properties are centrally located in the central business districts of the
independence of our subsidiaries provide us with many tools for adjustment of three prime Philippine regions, namely: Manila, Cebu and Davao.
the guest experience, which aids in customization and responsiveness to our
market’s needs. These are the key cities of the country with the highest tourism traffic. As such,
our location gives us access to a greater number of foreign and local travelers
Opportunity to benefit from economies of scale. as well as enables us to attract ideal markets.
Our size and market leadership allows us to benefit from economies of scale. Capable acquisition strategies.
Through the use of our bulk purchasing policy, we are able to secure contracts
and services, and procure supplies on favorable terms and prices. This helps us Our management team has substantial management experience in the
efficiently manage our operating costs in relation to linen products and acquisition of equity interests in hotels in the Philippines. We have enjoyed
consumables, such as paper products, food and beverages. Profitability is considerable success in formulating and implementing clear acquisition
maximized. strategies, and seizing opportunities to explore market potential of the hotel
industry.
Competent management and operating systems.
Our acquisition strategy remains sound as it takes half the time to acquire and
We have streamlined our operations to make it more efficient. Marketing and renovate properties as it does to conceptualize, construct and pre-open new
room reservations are managed through our central reservation system and properties. With our expertise in hotel management, and our partnership with
our real-time reservation system online. We make use of the latest advances in an investment group that is premised on the transfer of clean properties with
technology to facilitate higher efficiency. We are the first hotel chain in the minimal business risks, we are confident in our ability to improve operations
country to implement a Corporate Fidelio shell and use OPERA for our Property and enhance the value of acquired assets.
Management System (Front Office) and Marketing (Sales and Catering). Micros
Materials Control, Sun System for financial standards and HRTS or Human Dynamic growth approach.
Resource Total Solution are some systems used throughout the Hotel which
provides efficiency in the different departments of the Hotel is caters to. We see our revenue to grow further from the expanding opportunities in the
gaming industry and by consolidating our partnership with the Philippine
Through a centralized procurement and bulk purchasing policy, we ensure a Amusement and Gaming Corporation. We believe the gaming industry is poised
consistent quality standard of goods supplied to us. Moreover, standardizing to become a major contributor to the Philippine economy and the growth
the products used in our hotels provides guests with confidence in the quality impetus ascribed to tourism by the national government. We intend to continue
of each hotel and helps us efficiently manage our operating costs. Our strong looking for opportunities to expand and diversify our business.
presence in the Philippine hospitality industry has been able to develop
procurement channels that allow us to obtain value-for-money goods and ntegrated company support services.
64
Our company stretches across several subsidiaries that provide today conducts its annual facility improvements to assure the
important support services for our properties. (See Our quality of its product.
Subsidiaries section for details.)
The major update to our portfolio is still undergoing
Growth Strategies reconstruction from the ground up. The Waterfront Manila Hotel
and Casino will soon rise, bringing with it an entirely new
Waterfront believes in constant evolution and improvement. We experience that will excite and draw guests for years to come.
are passionate about developing our people, processes and
infrastructure to boost the overall quality of our product. We Our provincial properties, meanwhile, are being maintained to
believe this is essential for continued growth, expansion and ensure that they deliver only a topnotch guest experience that
sustainability. We focus on strengthening our product to improve has come to be expected of our brand. In 2019, the properties
guest satisfaction and ensure our profitability and staying power. have focused on the maintenance and repair of equipments and
upgrade of systems, both hardware and software. WCCH has an
The facility upgrades in recent years have served to pique on-going upgrade of its function room(s) and convention
consumer interest in our hotel experience. Our on-going facilities including upgrade of its IT network and solutions.
renovation of our Manila property will soon be our most exciting WAHC also made improvements in its room amenities and in the
addition to the Waterfront experience, and we expect to emerge last two years, added more space to accommodate increasing
even stronger as a group upon its completion. demand for various hotel services. WIHD also makes regular
improvements and in the past years has invested consistently in
The year 2019 has been about optimization of our strengths, transport, amenities and equipment.
consolidation of efforts and efficient management of our properties
to achieve or exceed our targets. It has been about aiming high and Peer Development.
expecting the best performance among our peers, and ensuring
that they receive our full support. Because of this, we have Waterfront’s service and management excellence stems from
maintained our lead as one of the top Filipino-owned hotel our ability to continually nurture and maintain high professional
chains catering to travelers and guests who wish for the standards among our people, whom we call our “peers”. We do
ultimate convenience in the Philippines’ key cities. this through continuous learning and training.
Apart from property improvements and peer We are mindful of the highly competitive standards within the
development, we believe that the vital elements to hospitality industry, and thus focus on imprinting valuable
growth reside in strategic acquisition and knowledge and new skills that our peers to perform
diversification strategies, and the constant exceptionally, and up to the highest industry standards. This
improvement and expansion of our continuous upgrading process in service competency is
distribution channels. reinforced by our own local passion to convey the signature
warmth of the Filipino hospitality.
Facility Upgrades.
In 2019, the group achieved a total Training Index of 110.58
Each property has undergone housrs per person, exceeding the target of hours per person by
necessary upgrades over 20%. WAHC secured the highest training index with 163.15
the years. Waterfront hours, followed by WCCHC with 138.4 hours and WIHD with
65
125.88 hours. Waterfront believes in employee engagement and involvement in Corporate

Social Responsibility (CSR) activities. Through company-wide CSR activities,
Operating in a highly competitive industry, the Waterfront group aims to peers participate in a holistic developmental program. Our company considers
consistently provide a program whereby our peers have the opportunity for its CSR programs as instrumental in helping employees feel more involved and
continuous education. One of the high-impact programs given to the key aligned with the company's mission, vision and core values. Engaging peers in
performers across our various properties is the American Hotel and Lodging the CSR programs is a means towards realizing the hotel’s thrust in being a
Educational Institute (AHLEI) Certification Course. A new batch of peers from leader and taking part in community-based projects that help in the
our different properties was enrolled in AHLEI’s self-paced Professional development of the tourism industry. (See CSR section “Giving Back” for
Certification Designation. details.)
As part of Waterfront’s Leadership Development Program, managers and Peers are embraced as the group’s strategic partner throughout our
supervisors from our different properties attended the Level Up Leadership operations. The program is key to the development of effective and
seminar conducted by one of the Philippine’s most respected business result-driven interventions and initiatives aligned with the ongoing
speakers, Francis Kong. The two-day seminar-workshop is a comprehensive transformations that all the hotels are undergoing in order to uphold our
course of leadership training designed to equip high-potential leaders with competitive and distinctive advantage in the hospitality industry.
effective and proven principles, behaviors and applications with the objective
to develop the business organization’s most important asset—its valued Business Diversification. Waterfront continuously looks for opportunities to
employees. expand and diversify its business. This business decision has been embarked
on in recent years, and is expected to reshape the direction of Waterfront as a
The Hospitality Supervisory Program is also part of Waterfront’s Leadership group as we decide on more strategic transformations in the future. It will
Development Program, and was completed by WCCHC supervisors in 2019. influence our management strategies and guide our decision-making as we
The five-day certification program provided information and learning activities, strive to ensure our sustainability today and in the future.
training supervisors about best practices in carrying out their responsibilities
to both management and to subordinates or fellow employees. Several approaches are being considered, including the determination of best
use capacity, setting up of diversified revenue streams, and multiple ways of
Waterfronts‘ human resource managers attended the People Management complementing, enhancing and improving on our core business. This is a
Association of the Philippines’ (PMAP’s) Annual Conference held in WCCHC. necessary undertaking in order to maximize the value of our locations, being
The conference content focused on technological advancements and the most situated in prime properties in the key cities in the Philippines.
up-to-date HR tools that can be used for faster and leaner operations. The
coverage included e-learning platforms for employee training and This is part of our commitment to constantly find ways to enhance shareholder
development, as well as ensuring that despite the new software that is being value and to remain dynamic as a company, constantly moving from strength to
proffered to HR professionals, the human touch and personalized management strength.
remains at the heart of the profession.
Expanding Distribution. In 2019, we have relied on our online channels even
The company also conducted safety and security training programs that more to bring continued growth and expansion to our company. Our
included ERT training, a disaster risk reduction management seminar and an profitability is anchored on our innovative and bold efforts in marketing and
HIV/AIDS awareness seminar given across all properties. This is to ensure that distribution, ensuring that we reach and joined programs which tremendously
all peers are equipped with skills and the latest information required to keep a elevated our distribution and thereby increased revenue production.
high level of security in Waterfront’s premises, ensuring the safety of all guests
and employees.
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Total online production has successfully remained robust robust. WCCHC room nights booked online rose from 58,798 in
among all our properties—this is an aggregate of production 2018 to 68,271 in 2019—a 16% growth rate. WAHC
rates from our Global Distribution Service (GDS), Online Travel online-booked room nights in 2019 is at 22,606. WIHD room
Agencies (OTA’s), website and mobile app. nights via online channels increased from 13,965 in 2018 to
17,153 in 2019—a growth rate of 23%.
Online production continues to contribute significantly to total
revenue year on year. Online revenue in 2019 remains strong For the entire group, online segment average room rate (ARR) in
among all our properties. Through combined online channels, 2019 is 3,258.41. Data per property shows that WCCHC online
the group (WHC) generated a consolidated online gross segment ARR is at PHP 3,308.31 in 2019—up 4% from PHP
revenue of PHP 352 million in 2019, which, compared to PHP 303 3,175.27 in 2018. WAHC online ARR is PHP 3,819.05. This
million in 2018, reflects a 16% growth rate. This figure is signifies an increase of 6% versus 2018’s rate of PHP 3,605.81.
computed as a total of GDS, OTA, Website and Mobile App WIHD online ARR in 2019 is PHP 2,320.91.
revenue.
Online channels have become a strong avenue for growth and
Per property data reveals that WCCHC generated PHP 225.86 continue to gain relevance as customer behaviors and
million in total online segment revenue in 2019—an increase of preferences change with popular technology. Their substantial
21% against PHP 186.70 million in 2018. WAHC total online contribution to overall revenue, and their significance to
segment revenue in 2019 is PHP 86.33 million, which means a company expansion make them an important segment for
5% increase versus PHP 82.36 million in 2018. WIHD reports a continuous enhancement.
total online revenue of PHP 39.81 million, increasing by 18%
ahead of last year’s PHP 33.72 million. The total online revenue The Waterfront website enjoys a continued stream of
per hotel is also computed as a total of GDS, OTA, Website and patronage. The site is well-maintained and constantly updated
Mobile App revenue. to improve user experience and ensure current information. We
enjoy visits from countries such as the Philippines, USA, Japan,
In terms of Rooms revenue contribution, online market Australia, South Korea, Australia, Singapore, Canada, UK, India
revenue contributed 48.43% of total gross Rooms revenue and UAE. These are our top countries with the highest sessions
for the entire Waterfront group in 2019. Per property and visits with over 185 countries visiting our site.
Hotel, online revenue contributed 52.51% of gross
Rooms revenue for WCCH, 46.95% for WAHC and
35.31% for WIHD.
Online-generated room nights for the entire

Waterfront group in 2019 is at 108,030,
increasing by 13% versus 95,605
online-generated room nights the
previous year.
Per property, room night’s

production from online
channels remains
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JANUARY - DECEMBER 2019

Agencies (OTA’s) across strong markets such as Korea, Japan, China, and
Europe/US. The local market, Philippines, still remains to be the strongest
LOCATION - COUTNRY TOP 10
Country Users New Users Sessions among our online geographics. We are currently working with Sabre as our
185 COUNTRIES 158101 154600 204925 global distribution partner. It is the world’s largest online sales, marketing and
Philippines 93644 91359 123366 distribution service for hotel groups. This system provides the best and
United States 17808 17477 22346
Japan 13371 13052 16829 comprehensive search facilities for agents in the hotel and resort industry,
South Korea 3816 3758 4669 assisting them in making thousands of customized searches and generating
Australia 3655 3604 4894
instant confirmations. These partnerships support a strong distribution
Singapore 2725 2662 3573
Canada 2389 2352 3079 network for the company, ensuring solid growth infrastructure.
United Kingdom 2225 2182 3049
Taiwan 1918 1878 2334
GDS data in 2019 proves that it continues to benefit our group. GDS-generated
United Arab Emirates 1684 1669 2163
TOP 10 PAGES room nights in 2019 for the entire Waterfront group is at 2,485. ARR from GDS
PAGEVIEWS UNIQUE PAGEVIEWS production grew from PHP 3,047.56 in 2018 to PHP 3,232.38 in 2019—an
Homepage - Waterfront Hotels & Casino
Waterfront Cebu City Hotel & Casino - Waterfront Hotels & Casino
132701
60969
93830
42336
annual growth rate of 6%. Total GDS-contributed revenue for the group in 2019
Waterfront Insular Hotel Davao - Waterfront Hotels & Casino 42842 28021 is PHP 8.03 million.
Waterfront Airport Hotel & Casino - Waterfront Hotels & Casino 25183 17617
Contact - Waterfront Hotels & Casino 18592 13187
Events and Entertainment - Waterfront Hotels & Casino 15062 11206
Online travel agencies or OTAs have continued to produce an important
Superior Room - Waterfront Hotels & Casino 12548 9845 source of growth for the group. OTA-generated revenue for the group is PHP
Manila Pavilion Hotel & Casino - Waterfront Hotels & Casino 11840 8467 329.20 million in 2019. Compared to PHP 276.31 million in 2018, this signifies a
WIHD - Standard Room - Waterfront Hotels & Casino 7497 5733
Events & Ac�vi�es - Waterfront Hotels & Casino 6031 3856
19% growth in the category. OTAs generated a total of 101,586 room nights for
TOTAL ALL PAGES 514317 380190 the group in 2019, growing by 15% versus 88,136 the previous year. ARR under
OTAs is PHP 3,240.64 in 2019 for the entire group—a 3% increase versus PHP
The hotel engaged Compass Edge to develop a simplified site in Chinese to 3,135.06 in 2018.
cater to the Mainland market. The page is published under the hotel’s
sub-domain, www.waterfrontcebucityhotel.com.cn. The site was translated by Our marketing, sales and reservations offices make up an important backbone
Mainland Chinese professionals, and used Search Engine Optimization via of our operations and revenue, representing our properties and facilitating
Baidu, where it was submitted for indexing. The site is mobile-friendly and is cross-selling of our hotels and services. We ensure that our sales service is
responsive in order to cater to various displays on desktop, tablet and mobile. integrated, flexible, efficient and always accentuated with that Filipino touch of
Marketing is also expanded through social media channels, as the site is linked excellence.
to Chinese social media accounts on Weibo, with promotional posts in
Simplified Chinese. In 2019, the number of calls received through our Central Reservations Office
(CRO) amounted to 50, 625 calls while emails received was at 449,316.
Waterfront continues to generate steady sales volume through its central
reservations office, which makes us the only integrated network of hotels in the Overall we continue to expand in innovative ways, using technology and new
country with a powerful presence through our 24/7 toll-free number. Anyone media to our advantage as a cost-effective way to expand our market share,
can book using a single 1-800 number, 1-800-WFRONT8 (9376688), for all explore new markets and ensure the strength of our brand presence locally
Waterfront Hotels nationwide. This channel caters to guests who prefer and internationally.
booking by phone.
We maintain a partnership with our B2B and B2C Online Travel Agencies
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FOCUS ON THE BUSINESS TRAVELER hotels, we maintain a consistent focus on travelers with the
MICE objective. We are flexible and efficient, able to provide all
Waterfront gives a wide range of business-related technical equipment and assistance necessary for business
conveniences to ensure that our guests enjoy a productive stay. functions of any scale.
Our special attention to detail, well-equipped business centers,
accessibility, unrivaled facilities and presence in major cities of Urban recreational facilities. We have all the facilities that a
the Philippines make us best positioned to cater to the business business traveler requires to relax and unwind. Throughout our
traveler’s needs. hotels, we maintain wellness facilities: gyms, spas, swimming
pools and gaming areas that put the business traveler at ease.
We are located throughout the country's major cities, in We know how important it is for guests to find an oasis in the city,
proximity to international airports. No other hotel chain in the and Waterfront, throughout its urban locations, provides
Philippines has the reach and presence of Waterfront Hotels. sophisticated facilities for wellness, exercise and relaxation.
Our hotels are located ideally within a short distance from major
international airports, the Ninoy Aquino International Airport Connectivity. Waterfront Cebu City Hotel and Casino offers
(NAIA) and the Mactan Cebu International Airport (MCIA). fast and free WiFi in-room and in its public areas. Our
Whether it is in Manila, the country's biggest tourism hub and its widespread connectivity service, whether in our rooms or our
political, social and economic center, or in Cebu, considered the public spaces has been praised by many guests as generous
gateway of tourism in Southern Philippines and the and highly efficient. Nothing satisfies a business traveler more
fastest-growing destination in the country, or Davao, a major than a reliable, readily available Internet connection that
city in the Mindanao area and an ideal base for business in the enables him to work anytime, anyplace.
area, Waterfront is able to provide business travelers with first
class accommodations and convenience expected of a Fully equipped business centers. Our business centers are
business-savvy hotel. equipped to accommodate the business traveler's needs for
Internet access, secretarial functions, copying services and
Our capability to accommodate large numbers of travelers communication. We take pride in being able to provide an "office
for all types of business gatherings. We provide the best away from the office", while maintaining that relaxed hotel
range of venues for all types of meetings and ambience.
conventions. No other hotel chain can boast of
having the facilities to handle small, medium and International gaming facilities. We provide gaming options to
large-scale gatherings with ease. the international traveler. Our hotels give you the enticing option
to discover the unique thrills of gaming while on your business
Our unrivaled facilities for MICE. We trip.
have the largest international
convention center in the Visayas- A wide range of dining options. Being able to cater to a wide
Mindanao area, unparalleled for its range of tastes and food preferences is a source of pride for our
size and available facilities. The hotels. Business travelers who have unique preferences will find
convention center readily themselves at home in our dining outlets which serve
accommodates over 4,000 international cuisine, from Chinese to Italian to Japanese. Menu
people. Throughout our customization for those with special dining requirements is done
by our highly competent F&B staff. We provide a wide range of
69
menu options for business functions to suit your preference and budget.
Affordability and competitiveness. We have successfully remained within

the business traveler's reach by staying true to our commitment of value for
money. We continue to be highly competitive and best in class, giving our
guests luxurious stays that are reasonably priced and appealing to our target
market. This is especially relevant in today’s business climate, where
companies are adjusting their budgets and looking to find the best value for
business travel.
Online ubiquity. Waterfront Hotels & Casinos boasts of an expanded online

presence. We touch base with our clientele through our web and mobile tools
that are designed to capture our market through well-strategized user
interfaces. Bookings and payments are made secure and easy through
constant improvements in our software. Our online booking facility also allows
convenient reservations 24/7, enabling the global traveler ease in planning his
stays. We are progressively increasing our online presence so we can serve the
business traveler better.
Furthermore, we add priceless touches to the business traveler's stay. Our

rooms and suites are specially furnished to please the jet set with sophisticated
taste. The contemporary design aesthetic is prevalent throughout our hotels,
adding an element of freshness, modernity and style that contributes to an
unmatched experience.
The Ambassador Lounge is a highlight of our business stay. It offers the

privilege of a top-floor location with splendid city views ideal for the corporate
guest. Furnished with modern office equipment, state-of-the-art computers,
audio polycom service, high-speed WiFi access, exclusive buffet breakfast,
light afternoon snacks and full convention & secretariat support, the
experience is perfect for on-the-go business executives.
Fresh new touches from our recent renovations convey our commitment to
guest satisfaction. Whether it is the stunning, expansive new lobby at our Cebu
flagship hotel or the progressive improvements in all of our properties, you are
assured of a warm touch that cares for your every whim.
The unique combination of sensible sophistication, convenience, expanded

F&B options, integrated gaming, wellness facilities, excellent service &
attention to detail all adds to the signature touch that is unmistakably by
Waterfront
70
AWARDS
Nominations, Awards and Citations Year Organization Property
Best Events Venue 2019 Sun.Star Publications WCCHC

Gold Circle Award Winner 2019 Agoda WCCHC
Top Taxpayers Award - Top 10 2019 Cebu City WCCHC
Cebu City Real Property Taxpayers Government
Asia’s Best Airport Hotel 2019 Haute Grandeur WAHC

Global Awards
Philippines’ Best City Hotel 2019 Haute Grandeur WAHC
Global Awards
Best Business Hotel 2019 Haute Grandeur WAHC
Global Awards
Partner Hotel Award 2019 GMCAC WAHC
Top 10 Taxpayers Recognition for 2019 Lapu-Lapu City LGU WAHC
Company-Realty Category
1st MICE Venue Standard Award, 2018 ASEAN WCCHC

in a Hotel Category Setting
Best Events Venue 2018 Sun.Star Publications’ WCCHC

Best of Cebu Awards
Token of Appreciation 2018 iCanServe WCCHC
Foundation Cebu
Grand Champion 2018 Davao Culinary Cup WIHD
Loved by Guests 2018 Hotels.com WIHD
Bronze Award, Gross Sales 2017 Rakuten Travel WAHC
Bronze Award, Customer Review 2017 Rakuten Travel WAHC
Scores
Best Events Venue 2017 Sun.Star Publications’ WCCHC
Best of Cebu Awards
Token of Appreciation for Corporate 2017 iCanServe WCCHC
Social Responsibility Foundation Cebu
71
AWARDS
Agoda Gold Circle Award 2019

Waterfront Cebu was named by Agoda as one of the 30
hotels in Cebu awarded the Golden Circle Award in
recognition of the hotels’ superior service quality, globally
recognized by its customers.
72
SunStar Best of Cebu 2019 - Best

Events Venue 2019
For the 3rd year in a row, the City’s premier hotel was
awarded Cebu’s Best Events Venue 2019, making the hotel a
grand slam winner in the said category.
73
Cebu City Top Taxpayer Award 2019
Waterfront Cebu City Hotel & Casino was recognized by the Cebu City Government for being one of
the city’s Top 10 Real Property Taxpayers in 2019 during the 83rd Cebu City Charter Day
Anniversary Testimonial Dinner and Awarding Ceremony.
74
AWARDS
Haute Grandeur Award

Waterfront Cebu awarded as Asia’s Best Airport
Hotel, Philippines’ Best City Hotel and Best Business
Hotel by Haute Grandeur Global Awards.
75
GMCAC Partner Awards

Waterfront Mactan received partner hotel awards
from GMCAC.
76
Taxpayer’s Night
Waterfront Mactan is part of the Top 10 Taxpayers for “Company-Realty” category for 2018.
77
AWARDS
Agoda Gold Circle Award 2019

Waterfront Davao was awarded with Agoda Gold Cicle Award 2019, honouring Agoda’s
hotel partners’ superior service, high scoring peer-to-peer reviews on Agoda, pricing and
availability excellence.
78
CORPORATE SOCIAL RESPONSIBILITY activities. The ceremony was attended by foundation representatives and staff,
physicians, members of the Arts Council of Cebu, and the children who
arecurrently the beneficiaries of the foundation.
Giving Back
As part of its commitment to serve and give back to partner-communities,
Our Corporate Social Responsibility (CSR) program remains an important part WCCHC held a CSR activity at Barangay Kang-atis Elementary school.
of our mission and core values as a company. Waterfront helped fund the repainting of the school and WCCHC staff
participated in the repainting activity.
We are compelled to give back to our communities, recognizing that it is these
same communities that allow our business to thrive and serve our society. As a Ecological preservation has always been an important priority for the hotel.
company, we believe that giving back is not just about developing local Every year, the hotel reevaluates its energy efficiency and finds ways to
business and providing employment, but also getting involved in community improve its environmental footprint, never ceasing in its effort to cut carbon
improvement and upliftment. Each of our hotels regularly selects relevant emissions and reduce energy use. Not only does this make sound business
causes to include in our CSR agenda—projects that reflect our corporate sense—more importantly, it contributes to lesser human impact on the
values and respond to the exigencies of the time. We update our CSR priorities environment.
according to the changing needs of the community.
The hotel continues to use its recently-installed heat pump units were installed
For the first time in our Annual Report, we will be including our 2020 CSR efforts to save on fuel cost. The technology uses reverse refrigeration in order to heat
during the pandemic alongside our 2019 updates, as we deem it important to water and utilizes an eco-friendly refrigerant known as R-143-A. While it keeps
provide relevant information on the company’s community work during such an diesel fuel consumption at a minimum, it also reduces carbon emissions year on
exceptionally arduous time. year. We also installed a 40 BHp Logic Heat Vertical Steam Boiler to further
save on fuel consumption and produce zero carbon emissions. The system
Waterfront Cebu City Hotel & Casino (WCCHC). In 2019, our flagship uses electricity to convert water to steam. These two projects continue to
property sponsored various events supporting widely-espoused causes, such generate substantial savings while they reduce the hotel’s carbon footprint.
as breast cancer awareness, as well as local causes of great relevance to its
surrounding community. The hotel leaves subtle "Save the Environment" cards in all rooms. It is both an
information drive to raise environmental awareness among guests,
The Pink October Ball, in partnership with the ICanServe Foundation, was the encouraging them to reuse towels and linens to limit water consumption and a
grandest October breast cancer benefit in the city, featuring world-class program to limit the use of detergents that cause water pollution.
fashion and creativity for a cause. The month-long Pink October awareness
and fundraising drive dubbed #WaterfrontGoesPink was kicked off by this The property participates in Earth Hour this year, as it has committed to doing
charity gala, held in October 12, 2019. The event featured the stunning and every year, turning off exterior lights and dimming the lights at the Grand Lobby
elegant designs of renowned Filipino designer, June Escario, worn by the brave during the designated period. In-house guests were encouraged to participate
and outstanding women cancer survivors of ICanServe. Proceeds of the event in energy-saving by switching off lights and other electronic devices in the
benefited iCanServe Foundation. rooms. Earth Hour’s successful adoption lowers energy cost for the
establishment and more importantly, through collective participation of
WCCHC continues to work with Kapwa ko Mahal ko Foundation-Cebu to help commercial establishments and private volunteerism, diminishes energy
develop a healthy community by reaching out and awarding financial consumption worldwide. It is also a program that teaches people globally to be
assistance to families in need. The hotel presented a certificate of recognition aware of energy-saving practices.
to Kapwa Ko Mahal Ko Foundation, Inc. for its active support of the hotel’s
79
The hotel’s annual tree lighting ceremony is a much-anticipated The Department of Social Welfare and Development (DSWD)
event, gathering Waterfront’s valued patrons and guests to Cebu also received support from WCCHC in the form of food
welcome the holiday season. The 2019 Christmas Tree Lighting donations, to assist them in their work of packing relief goods for
Ceremony was held on November 15. This particular event was ingredients, the homeless and for displaced workers.
dedicated to the recognition of the hotel’s partners and
beneficiaries, among them the ICanServe Foundation, its On Easter Sunday 2020, the hotel distributed over a hundred
various event corporate sponsors, designers and creatives who food packs to checkpoint front-liners in about twelve (12)
participated in the Pink October Ball, and representatives of checkpoints across the city, recognizing their sacrifice and
Kang-atis Elementary School, the hotel’s community increased risk during this uncertain time.
partner-beneficiary for the year.
The hotel donated hundreds of sacks of rice and thousands of
Following the unprecedented change brought by the COVID-19 pieces of canned food to Barangay Lahug, Cebu City for
pandemic in 2020, WCCHC decided to help its neighboring distribution to residents in need, especially those who were
communities and medical centers cope with the many quarantined or unable to work.
challenges. Many have had to endure sudden displacement and
shortage of essential goods. Hospitals were short of personal In May of 2020, Waterfront (WPI), as represented by its major
protective equipment (PPE), especially at the start, when stakeholders, donated medical supplies to the Province of Cebu.
demand far outstripped supply. Tens of thousands of pieces of medical safety equipment was
handed over to the province for distribution to its various
WCCHC launched its longest and largest donation drive to date, agencies and hospitals. In July of 2020, Waterfront also donated
starting in March when it distributed food assistance to Cebu’s sacks of rice and canned food to Cebu City Hall.
local hospitals and even sent PPE donations as far as Masbate.
These donations came in several waves, and were distributed In support of its seasonal workers who were displaced as a
among private and public medical institutions, including a result of the pandemic, WCCHC donated sacks of rice and food
children’s ward in the city. The hotel also donated N95 masks packs, as a gesture of concern and solidarity. WCCHC
to the anesthesia department of a private hospital. continues to assist and monitor its displaced workers.
WCCHC also supported nine (9) fire stations within These efforts are ongoing, and Waterfront is committed to being
Cebu City through food pack donations. The hotel a true community member and concerned participant, as we
continued this donation drive throughout March strive to ensure business continuance while our entire society
and April of 2020. In April the hotel also faces this unprecedented challenge.
launched another series of food pack
donations to the various hospitals in Waterfront Airport Hotel and Casino (WAHC). WAHC always
Cebu. initiates its Christmas effort early by visiting the residents of
Caohagan Island in Mactan in September. The CSR activity is
The hotel also donated food called “Feet for a Change”, which included feeding, distribution
packs with water to the Cebu of school supplies and handing out of slippers to the local
Provincial Government for children. Footwear is crucial to maintaining children’s health, as
distribution to its this basic necessity prevents many infections and ensures that
provincial hospitals. the children can be active and mobile. The residents of
80
Caohagan have been beneficiaries of WAHC for several years now. Waterfront Insular Hotel Davao (WIHD). In 2019, WIHD continues its
women’s health advocacy through its Pink October drive, understanding that
Every year, the hotel takes part in Earth Hour. Lights in large public areas are more effort needs to be done to raise awareness of breast cancer’s detrimental
switched off. Instead of electric lights, candle centerpieces were used for effects on women’s health. WIHD’s annual event series “Pink Matters” is a
lighting, and still as minimally as possible throughout the property. To heighten vehicle for breast cancer awareness and fundraising. The hotel hosted an
awareness of this cause, a thirty-minute educational video presentation was exclusive charity gala highlighted by the presence of the candidates of the
shown to explain the significance and impact of the campaign to all 2019 Miss Earth beauty pageant, and featuring an art exhibit created by a
participating guests. The hotel has cumulatively saved 5 kilowatt-hours . group of women artists, BaiHinang. A “Pink Matters” room promotion was also
set up to raise more funds for the cause.
As with all other properties, energy conservation is a mainstay of WAHC’s
projects. The property finds ways to increase its energy efficiency thus WIHD extended its CSR activities to neighboring province Agusan. Our Davao
contributing less to pollution and carbon footprint. The recent replacement of team visited a floating village in Agusan to donate linens, towels, slippers and
old televisions in all guest rooms to power-efficient LED TV’s saved electricity other essential goods to the underprivileged community in the area. The
consumption for the hotel. After the project’s completion, annual energy cost Municipality of Loreto in Agusan del Sur was also an event partner in the hotel’s
has been reduced significantly. The hotel also installed an efficient digital breast cancer awareness charity gala held in October.
thermostat control system in all guest rooms. It also converted 35% of the total
number of halogen lights to LED lights, saving on cost, efficiency and power Childhood cancer continues to be one of the Mindanao region’s biggest health
consumption. challenges. Childhood cancer wards are under-funded and under-supported,
and overall, childhood cancer cases in Mindanao statistically show lower
As the COVID-19 pandemic struck in 2020, the hotel has been active in survival rates than the rest of the country. However, the numbers for survival
community assistance drives, to help provide much-needed donations in the among children with pediatric cancer have begun to improve in recent years,
form of food and personal protective equipment (PPE) necessary in the fight jumping from 10% to 50%. WIHD is part of the effort to improve the outcomes of
against COVID-19. this disease through is partnership with the House of Hope Foundation for Kids
with Cancer. The partnership now runs on its third year.
In March of 2020, WAHC donated packed food and water bottles to the
Eversley Childs Sanitarium and General Hospital. These donations came in WIHD was the first hotel in the Philippines to achieve a breakthrough using
three waves. In April, the hotel donated PPE to the Cebu Crisis Assistance solar energy. This clean energy effort continues today, as the hotel, already
team. WAHC, in April, provided food assistance to the Lapu-lapu City lauded as the first in the country to utilize solar power in its water heating
checkpoint front-liners. These donations also came in several waves. In May of processes and to supplement its other energy needs, continues to use clean
2020, WAHC donated 27 boxes of medical-grade PPEs to the Office of the energy to reduce its power costs as well as limit its energy consumption from
Cebu Governor, and gave canned food and sacks of rice to the Office of the conventional sources. This vital program has succeeded in conserving energy
Lapu-Lapu City Mayor for distribution to those in need. In May of 2020, the use and over time has generated tremendous benefits both for the company
hotel provided sacks of rice and canned goods to Barangay Pusok, a nearby and the environment.
barangay.
Along with all other Waterfront properties, the hotel showed solidarity in its
In solidarity with its displaced seasonal workers, WAHC donated hundreds of support for Earth Hour by conserving energy during the designated time. All
sacks of rice and canned goods to provide much-needed food relief during the lights in and around the property were dimmed during Earth Hour to participate
pandemic. The hotel continues to be involved in its community and is making its in the global drive to conserve energy.
best effort to participate in donation drives and assistance efforts to help
affected parties during this difficult time. The hotel also partners with government agencies to continue on its coastal
81
clean up drive. Together with the Environmental Management mission to support its community, especially where its
Bureau XI (EMB) of the Department of Environment and Natural properties are situated, and in its support of the environment
Resources (DENR), it regularly implements a joint coastal clean through environmentally sound practices, as this is a manner of
up to preserve the surrounding marine environment. assuring a balance between commerce and sustainability.
The long-term objective of this project is to reduce the Waterfront invests in the Philippines’ present and future
incidence of flooding in Davao and to preserve the potential. We are fully committed to continuing our health,
environmental integrity of its coastal waters. Floods are environmental and community advocacies, believing that
responsible for sudden and extensive environmental, economic successful business ownership carries with it a broader
and public health emergencies. Pollution and environmental responsibility towards people and society.
degradation contribute to the deterioration of health and living
standards and destroy the ecological diversity of the area. WIHD
believes in implementing regular cleanup and
mangrove-planting measures to mitigate the effects of pollution
and urbanization.
Understanding the impact of the COVID-19 epidemic on our

local communities, WIHD organized several donation drives to
benefit the local citizens through their LGU. Throughout March
to May in the year, WIHD donated essential goods, including
canned food and rice to Davao’s LGU. The hotel also provided
much-needed assistance in the form of food and essential
goods directly to two barangays, Barangay Hizon and Barangay
Pampanga, which are both in its immediate vicinity. Total
donations to community causes during this three-month
period is PHP 1.70 million.
In solidarity with its displaced seasonal employees,

the hotel provided food donations in May worth
PHP 506,180.39, WIHD continues to participate
in donation drives and assisting its community
and its displaced workers, even as the
industry remain in a state of uncertainty
due to the pandemic.
e remain optimistic, however,

that this state of difficulty will
come to pass. Meanwhile,
the Waterfront group
remains steadfast in its
82
CORPORATE SOCIAL RESPONSIBILITY

Brgy. Kang-Atis Repainting

As part of the hotel’s commitment to serve and give back to
partner-communities, staff of Waterfront Cebu City Hotel & Casino held a
CSR activity at Barangay Kang-Atis Elementary School together with their
General Manager Anders Hallden.
83
Pink October Ball with I Can Serve Foundation

Waterfront Cebu Hotel & Casino, kicked off its month-long #WaterfrontGoesPink campaign with its annual
charity ball, dubbed as the Pink Ball at the hotel’s Pacific Grand Ballroom in partnership with Oro China, I can
Serve Foundation and Clothes for Life, Inc. The event featured the designs of renowned Filipino designer, Jun
Escario, and the outstanding women of I Can Serve.
84
Kapwa Ko, Mahal Ko Foundation

In the spirit of the season of giving, Waterfront Cebu City Hotel & Casino, headed by hotel general
manager Anders Hallden, was proud to present a certificate of recognition to Kapwa Ko, Mahal Ko
Foundation, Inc. for its active support in all the hotel’s activities. The short ceremony was attended
by Cebu’s much-loved pediatrician, Dra. Vivina Chiu, Gerry Roa, Honey Loop, members of the Arts
Council of Cebu, and the kids and staff of the service organization.
85
Christmas Tree Lighting

To recognize its partnerships with different non-profit organizations, Waterfront Cebu City Hotel &
Casino awarded their beneficiaries with a certificate of appreciation during its Christmas Tree
Lighting Ceremony among them were Mary Anne Alcordo-Solomon of I Can Serve Foundation, and
Mrs. Cebu Philippines Cherryl Pelayo Dacua, the empowered women of I Can Serve Foundation,
renowned Cebu-based designer Jun Escario, and Barangay Kang-atis Elementary School Principal
Leo C. Alcantara.
86

Cauhagan Public Elementary

School
WAHC led by Hotel Manager Benhur Caballes visited
Caohagan Elementary School with the Hotel’s
Engineering Dept. to build the school’s first library
complete with books and a party with the kids to
celebrate the occassion.
87

Agusan Outreach
Waterfront Davao visited the floating village in Agusan to donate linens, towels, slippers,
and other essential goods to the community. Also part of the CSR activities is the
conducting TESDA Certified courses and basic housekeeping to the locals.
88
Pink Party Initiative

Together with the Municipality of Loreto, Agusan del Sur and
Carousel Productions, Waterfront Insular Hotel Davao brings 25
international delegates of the 2019 Miss Earth pageantry to an
exclusive charity gala where women advocates and women of the
Earth come together with a collective intention to support the cause.
The main event was the Pink Art Exhibition portraying different
imageries of women created by the BaiHinang group of women
artists, a Pink Matters room promotion to run lasting the entire month
of October or the Breast Cancer Awareness Month. Proceeds
garnered a total of Php 43, 017.00.
89
Christmas Dinner for a Cause

In partnership with the House of Hope Foundation, a partner of 12
heartwarming years, and Muzic’s Kool, the Hotel dedicates the
season of giving to children with cancer in a fundraising gala dinner for
the benefit of the Kids of Hope. Proceeds garnered a total of Php
55,600.00.
90
CORPORATE SOCIAL RESPONSIBILITY 2020

DONATIONS AMIDST THE CRISIS
91
92
93
CONSTRUCTION IMPROVEMENTS
United Nations Avenue cor. Ma. Orosa St.,

Manila 1000, Philippines
94
SOURCE : PMT TE AM INTERIOR SHOTS | 2 019
23rd Floor 23rd Floor

Roofdeeck Roofdeeck Basement
Building Building
Hallway
Ground Floor - Lobby 8th floor Service Elevator
95
SOURCE : PMT TE AM INTERIOR & OUTDOOR SHOTS | 2 019
6th Floor - Pool Area Tower
Ground Lobby 6th Floor - Pool Area
96
Ground Lobby Ground Lobby
2nd Floor Ground Lobby 3rd Floor
Basement 8th Floor Ground Lobby 3rd Floor
97
Guest Elevator at Casino Gaming Presiden�al Suites

6th Floor Roof Slab Area
Casino Gaming Casino Gaming Casino Gaming

Area Area Area
Casino Gaming Casino Gaming 2321 Guest Elevator at

Area Area 6th Floor Roof Slab
98
Grould Floor
Basement Plant 6th Floor

Room
99
Mezzanine Ballroom
Escalator Openings, Slab Escalator Openings, Slab

Enclosure, Slab Replacement Enclosure, Slab Replacement
Slab Enclosure of Old Swimming Pool
Demoli�on of Old Crown at

the Tower
100
12th Floor
12th Floor
23rd Floor
101
3rd Floor
Duct Installa�on And Fire

Pro Line At 2nd Floor
3rd Floor
DOWNSPOUT AT 2ND F L R
102
SOURCE : PMT TE AM ROOF DECK SHOTS | 2 019
Roof Deck Roof Deck
103
SOURCE : PMT TE AM EXTERIOR SHOTS | 2 019
U.N Side
U.N Side
U.N Side
Maria Oroza
Maria Oroza U.N Side
104
SOURCE : PMT TE AM EXTERIOR SHOTS | 2 0 19
Maria Oroza
Maria Oroza
Maria Oroza
105
WATERFRONT HOTELS & CASINOS CORPORATE OFFICE
Waterfront Manila Hotel & Casino, United Nations Avenue cor. Ma. Orosa St., Manila 1000, Philippines
Tel. no. (632) 559-0888 | Fax no. (632) 559-0129 | [email protected]
WATERFRONT CEBU CITY WATERFRONT AIRPORT WATERFRONT INSULAR WATERFRONT MANILA

HOTEL & CASINO HOTEL & CASINO HOTEL DAVAO HOTEL & CASINO
1 Salinas Drive, Lahug, 1 Airport Road, Lapu-lapu City, Lanang, Davao City, United Nations Avenue cor.
Cebu City, 6000 Philippines Cebu 6015 Philippines 8000 Philippines Ma. Orosa St., Manila 1000, Philippines
Tel. no. (6332) 232-6888 Tel. no. (6332) 340-4888 Tel. no. (6382) 233-2881 to 87 Tel. no. (632) 8-526-1212
Fax no. (6332) 232-6880 Fax no. (6332) 340-5862 Fax no. (6382) 233-2801 Fax no. (632) 8-526-2552
[email protected] [email protected] [email protected] [email protected]
This report is published annually by Waterfront Philippines, Inc. for the benefit of
our stakeholders, peers, and patrons. No part of this report may be re[rpduced
without explicit permission from the publishers.
Copyright © 2020 Waterfront Philippines, Inc. and Acesite (Philippines) Hotel

Corporation. All rights reserved.

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A N N UA L REP O RT | 2 0 19

6 WPI CHAIRMAN’S MESSAGE

15 WPI DISPLAYS - REVENUE| REVPAR & ARR | OCCUPANCY | ASSETS

17 APHC DISPLAYS - REVENUE| REVPAR & ARR | OCCUPANCY | ASSETS

18 INDUSTRY OVERVIEW 2019

23 THE YEAR IN REVIEW. OUR COMPANY IN 2019

32 FOOD & BEVERAGE

32 OUR BRANDS - WCCH | WMHC | WAHC | WIHD

7 FROM THE CHAIRMAN RISING TO THE CHALLENGE

8 FROM THE CHAIRMAN RISING TO THE CHALLENGE

9 FROM THE CHAIRMAN RISING TO THE CHALLENGE

Through this pandemic, we have discovered new strengths and a renewed

I am proud of how our entire organization has managed to respond to this

10 FROM THE CHAIRMAN RISING TO THE CHALLENGE

Waterfront has been actively involved in community eﬀorts and corporate

13 FROM THE CHAIRMAN STAYING THE COURSE

Given the extraordinary circumstances Prior to the pandemic, 2019 tourism

Philippines Outlook 2019 Tourism is a major contributor to the Philippine economy. In

Source: Databanking Section - City Tourism Operations Oﬃce +7

projections have taken a diﬀerent -15

None of the UNWTO predictions

February of 2020, -35

Scenarios A Recovery Seen in 2021

According to the report, “the impact of the loss of demand in international

Graph 5. Survey on Tourism Demand Recovery per Region

THE YEAR IN REVIEW

OUR COMPANY IN 2019 forward from a time of unique

highest in its class.

Eﬃciency of Service—an improvement of 22.41% versus 3.19 in 2018. Under

able to share its multifaceted options for wedding events, in

WIHD also celebrated the thirty-fourth Kadayawan Festival

WIHD’s celebration of Pink October was in partnership with the

Each property’s marketing eﬀorts is tied with extensive public

Chinese New Year

Cebu Style Week - Pride and

Best of Cebu Awards Night

Top Accounts Party

To celebrate, honor and recognize its top

Chaine Des Rotisseurs

In celebration of 2019’s Mid-Autumn Festival, Waterfront Cebu oﬀered a wonderful

Christmas Tree Lighting

New Year’s Eve Party

Sinulog Celebration 2019

Chinese New Year

Easter Egg Hunt

Top Accounts Party

Christmas Nightly Entertainment

New Year’s Eve Countdown Party

Beautiful Beginnings at the

Our Subsidiaries are valued at PHP 6.54 million.

125.88 hours. Waterfront believes in employee engagement and involvement in Corporate

Online-generated room nights for the entire

Per property, room night’s

JANUARY - DECEMBER 2019

Aﬀordability and competitiveness. We have successfully remained within

Online ubiquity. Waterfront Hotels & Casinos boasts of an expanded online

Furthermore, we add priceless touches to the business traveler's stay. Our

The Ambassador Lounge is a highlight of our business stay. It oﬀers the

The unique combination of sensible sophistication, convenience, expanded

Best Events Venue 2019 Sun.Star Publications WCCHC