A deal worth close to €620m
Ayala Corporation has announced the signing of a definitive agreement with Mitsubishi Corporation, which will significantly strengthen the Japanese group’s position in the Philippine conglomerate’s share capital. The transaction is valued at around PHP 44.5bn, or close to €620m, based on a price of PHP 650 per common share (around €9.10).
The deal combines new shares, existing shares and a voluntary tender offer. Once completed, Mitsubishi’s economic interest in Ayala will rise from 4.7% to 15%, with its voting rights reaching 20%. The Japanese group will thus become one of the conglomerate’s main long-term strategic shareholders.
According to Reuters, the price values Ayala at around PHP 403bn (close to €5.6bn), representing a premium of almost 22% to the last closing price.
An expanded board and a tender offer
Subject to shareholder and regulatory approval of an amendment to its articles of incorporation, Ayala will expand its board of directors from seven to nine members. On Mitsubishi’s behalf, the conglomerate also plans a voluntary tender offer for up to around 30 million common shares, enabling minority shareholders to sell their shares at the same price of PHP 650 per share.
Ayala is expected to receive around PHP 20bn (close to €280m) from the transaction. The proceeds will be used to reduce debt, continue the share buyback programme of Ayala and its listed companies, and fund future growth initiatives. Completion remains subject to customary conditions precedent and regulatory approvals.
A 52-year alliance
Jaime Augusto Zobel de Ayala, chairman of Ayala Corporation, said the transaction represented far more than an equity investment, reflecting the strength of a relationship built over many years and a deep alignment of values, long-term vision and responsible stewardship.
The two groups intend to deepen their cooperation in infrastructure, the energy transition, real estate, digital technologies, mobility and logistics. Cezar P. Consing, Ayala’s president and CEO, described the deal as a way of accelerating a 52-year relationship for the benefit of the groups’ various stakeholders. The transaction also follows the visit to Tokyo by Philippine President Ferdinand R. Marcos Jr.
Ayala, a heavyweight of Philippine hospitality
Founded in 1834, Ayala controls, among others, the listed property company Ayala Land, the Bank of the Philippine Islands, Globe Telecom and ACEN. Its hotel business sits within Ayala Land Hospitality (ALH), Ayala Land’s hospitality arm. ALH has more than 4,000 rooms across its own brands and major international flags.
Among its own brands, ALH operates Seda Hotels, its business hotel chain, as well as the El Nido Resorts island properties in Palawan (Lagen, Miniloc, Pangulasian and Apulit) and the boutique resort Huni Lio. In the luxury segment, the group owns Raffles Makati and Fairmont Makati, in the heart of the Makati business district. In 2025, Lagen Island and Raffles Makati were awarded two MICHELIN Keys, while Pangulasian Island and Fairmont Makati each received one.
In March 2025, ALH announced a USD 500m (around €440m) five-year investment plan to expand its portfolio to nearly 8,000 rooms by 2030. This growth also relies on partnerships with international brands: the country’s first Canopy by Hilton, above the One Ayala complex, and the first Moxy in the Philippines, at Circuit Makati.
The flagship project remains the return of Mandarin Oriental to Makati, where the brand operated a hotel from 1976 to 2014. Developed with Ayala Land above the Ayala Triangle Gardens, Mandarin Oriental Makati, Manila (276 rooms) is scheduled to open in December 2026, under the leadership of Franck Droin, appointed general manager of the hotel earlier this year.
Our analysis | What does it mean for hospitality?
The announcement makes no explicit reference to hospitality. However, real estate is among the priority areas for cooperation, and Ayala Land, which holds the group’s hotel assets, sits at the heart of that scope. The equity injection and the parent company’s deleveraging could, in time, give ALH’s development plan greater room for manoeuvre. That plan is under way at a time when Palawan and other Philippine beach destinations are attracting new hotel players.
At a glance by The Hospitality Tribune
Mitsubishi raises its stake in Ayala Corporation to 15%
Deal valued at c. PHP 44.5bn (c. €620m) at PHP 650 per share, including a voluntary tender offer
Mitsubishi’s economic interest rises from 4.7% to 15%, voting stake to 20%; Ayala board expands from 7 to 9 seats
Ayala to receive c. PHP 20bn (c. €280m) for debt reduction, share buybacks and growth
Ayala Land Hospitality: 4,000+ rooms (Seda, El Nido Resorts, Raffles and Fairmont Makati), targeting c. 8,000 by 2030
Mandarin Oriental Makati, Manila (276 rooms) set to open in December 2026
