Why did Sofitel close?

Every generation needs a revolution - an entrepreneurial revolution

That it would be closing by July 2024 came in as a big surprise.  Sofitel is one of the best hotels and its location in Manila is prime:   near BSP, Cultural Center, Navy Club, and near Manila Bay.   Sofitel prided itself as one of the best in hotel management, offering plaisir  (pleasure) in what is basically a bed and breakfast business.

It offers one of the best buffet in Metro Manila   and one of the most expensive too.  P3,000++ at Sprial

That it closed could be not be attributed to mismanagement or lack of visitors, occupancy or market conditions

It might have something to do do with its lease to GSIS

Sofitel closure

Land speculation causing rise in land prices

Every generation needs a revolution - an entrepreneurial revolution

There are confirmed news (and its not insider trading) that LRT would be extended in 2025 from San Juan to Tikling Taytay Rizal that would cut travel time to downtown Manila by two hours.   This fueled speculation on land

The rawn land prices in Angono is  all ready at P10k.  In Binangonan it is P5K up.   Now computation for the cost to develop and selling price could not accommodate enough gp for investment

So many developers are locked out of going into development with sky rocketing land prices.   Is the place ripe for MRB. ?

Many of our negotiation were halted and scrapped

Advising a no go - is it a wise move in business consulting? Or should you not get paid for advising so?

Every generation needs a revolution - an entrepreneurial revolution

I had a boss, the head of finance company in the govt, who requested me to do a consultancy work for a friend.  The friend was a former local top exec in an lgu in the Visayas, now a head of a regulatory unit in the govt.   He wanted to invest 8 numbers in an ailing development bank in Southern Luzon

I accepted the engagement and requested for the financial statement

There were certain anomalies noticed:

     1.  There was a negative carry for earning assets, and expense bearing liabilities.   (The time deposits were paid + 10% more than there were earning assets.   It was therefore on continuing loss with its

asset liability structure.

    2.  Large officer expenses.  This is expected considering it had extensive branch network

   3.  There was one asset item that caught my attention:   P40 million repoa.  This I should see.

I went on a trip to the head office in Southern Luzon and met its executive who looked nonchalant and undisturbed over the situation of the bank,  I guessed, after looking at the relationship between quick assets and level of liability that they must be experiencing liquidity problems and in two months time

unless PDIC or BSP steps in a bank run is there in two months time.

This post asked to be accompanied to the 8 number repoa (it was just one item)  And found out that it was supposed to be memorial park, not even 2% developed and valued at  that such huge amount, equivalent to the proposed purchase price.  It was supposed to be an asset of the owner that was booked in the bank's books.  (The owner lived in a plush MM gated subdivision)

This post advised his boss, not to go ahead with the purchase because on day one, they would have negative, or loss with a huge non earning asset in its book.  My boss was aghast since we wouldl not be paid consultancy fee.  I said it was OK

I asked what was the purpose of the fmr mayor in the buy - out.  I learned he wanted to be given the title of the banker.   It was not to earn PHP.   What was the point of being called a banker but managing or owning a losing one

Is it ok not to be paid, if you advise so that the buyer do not get burned.?   Or should you proceed with consultancy no matter how bad the subject is so that you get paidddddddddd?