Dear Stockholders,
The year 2004 was a defining one for us. We took that bold step towards solidifying our financial position and reclaiming the glory that once was ours. Manila Pavilion Hotel formally joined the Waterfront family. This development is a significant move in our becoming a major player in the hotel and tourism service industry.
Already, we see positive results being borne from the move.
Major renovation work was completed on four floors of our property covering 152 rooms. We did this to bring our standards up to world-class levels, to offer first-rate guest amenity and to confidently compete in the cutthroat upgrading the Lobby area and will start work next on the remaining room floors, function and convention facilities and the various F&B outlets.
To complement our efforts at restoring and enhancing the charm of our property, we instituted a comprehensive HRD program that would re-orient our people towards a new culture of service excellence.
We also undertook aggressive marketing drives and introduced premium guest programs that would, and did, attract guests into our hotel.
Our efforts, which are yet to bear significant fruit in the coming years, are already paying off this early. Albeit modest, room revenue was a healthy P143.7 million, contributing to a gross income of P162.8 million at end year, based on nine month figures ending on December 31, 2004.
Our financial performance should be seen in the context of our business. The past year saw the slight growth of only 10% in occupancy in hotels in the Manila Bay area. This made competition even more intense for us. Unfortunately, we found it hard to compete with other hotels in our class, who had long renovated their facilities and could offer a more superior product than what we had.
But this is the past. This report summarizes the trials and eventual triumph of the previous year. It also maps out the path we are taking in the year ahead. Under a new management and a new culture, and with the synergy of the Waterfront group, we look forward to our continuing evolution as one of the best hotels in this area.
Thank you for your trust and confidence. This is our time to shine.
ARTHUR M. LOPEZ
CHAIRMAN OF THE BOARD
REXLON T. GATCHALIAN
PRESIDENT & CEO