Max’s Group Inc., the country’s largest casual dining restaurant group, said Tuesday it sold its entire stake in hotel unit Room Ventures Corp. to focus on the core restaurant business.
RVC owns and operates the Meranti Hotel, a 59-room accommodation facility in Quezon City.
MGI said in a disclosure to the stock exchange the asset sale would still be subject to a number of conditions. MGI did not identify the buyer and the value of the transaction.
“Our decision to divest from Room Ventures Corp. represents another step in our efforts to make MGI more streamlined, cost-effective and focused on its core business,” MGI president and chief executive Robert Trota said.
Opened in 2015, Meranti is a 12-story development and represented MGI’s sole venture into the hotel business.
“As the company bolsters its authority in the casual dining market, it is dedicated to enhancing the efficiencies and systems of its restaurant operations,” MGI said.
MGI earlier disclosed a P1-billion investment in a food manufacturing and distribution center in Cavite to future-proof the company’s continuous store expansion.
The facility will service the needs of MGI’s brands including Max’s Restaurant, Pancake House, Yellow Cab Pizza, Krispy Kreme, Jamba Juice, Max’s Corner Bakery, Teriyaki Boy, Dencio’s and Sizzlin’ Steak.
MGI has a network of 706 branches, with 59 across various territories in North America, the Middle East and Asia.
MGI plans to open 80 stores this year, only 20 of which will be company-owned to support its plan to have more franchised outlets.
The group plans to have six of its brands in Dubai by 2020. (J.B. Austria MT)