Panglao, Bohol – The Donatela Resort & Sanctuary, a luxury boutique hotel on the scenic island of Panglao, Bohol, is permanently ceasing operations effective September 30, 2026. This closure comes as a direct result of a foreclosure initiated by the state-owned Land Bank of the Philippines, to which the exclusive property was mortgaged for a substantial loan.
The permanent shuttering of Donatela Resort represents more than the loss of a single high-end tourism asset; it underscores the profound financial challenges confronting businessman Dennis Uy’s broader Udenna Corporation empire and its subsidiary, PH Resorts Group Holdings Inc. This development signals a significant unraveling of certain ambitious ventures that characterized Uy’s rapid expansion during the previous presidential administration, drawing a stark line under a period of aggressive, debt-fueled growth now giving way to distressed asset dispositions and a comprehensive financial overhaul.
PH Resorts Group Holdings Inc. (PHR), through its wholly-owned subsidiary Donatela Hotel Panglao Corp. (DHPC), formally announced the cessation of hotel operations in a regulatory filing. The property’s land and improvements, spanning 7.2 hectares, had served as collateral for a loan amounting to approximately ₱975 million. This loan was originally secured from United Coconut Planters Bank (UCPB) and subsequently transferred to Land Bank following UCPB’s merger with the state financial institution in 2022.
The foreclosure process saw Land Bank emerge as the highest bidder for the property after no other contenders participated in the extrajudicial auction. While PHR has disclosed that it has yet to officially receive the Certificate of Sale, the intent to turn over possession of the resort to Land Bank has been confirmed, solidifying the end of the Donatela’s operations under Uy’s group.
Acquired in 2018 at the height of Uy's expansion, the Donatela Resort was known for its luxurious offerings, including 12 exclusive villas, 11 of which were operational. These villas were nestled within lush surroundings, providing a secluded experience for guests. Despite the resort’s picturesque location and upscale amenities, its underlying financial obligations ultimately proved insurmountable for the holding company.
PH Resorts Group had previously indicated that the resort's hotel and restaurant operations were generating sufficient revenue to cover day-to-day operational expenses, including payroll and basic maintenance. However, these earnings were evidently insufficient to service the substantial debt burden tied to the property, leading to the default that triggered the foreclosure.
The closure of Donatela is inextricably linked to a larger, ongoing restructuring effort within PHR and its parent company, Udenna Corporation. PHR has articulated plans to transfer its entire ownership interest in PH Travel and Leisure Holdings Corp. to Udenna, a strategic move designed to alleviate PHR of its "legacy obligations." While the company maintains that the Donatela closure will not have a "material impact" on its financials once the proposed restructuring is approved and implemented, the development undeniably highlights the urgent need for this corporate financial overhaul.
As part of these restructuring efforts, PHR is seeking a significant increase in its authorized capital stock, proposing to raise it by 150 percent, from ₱8 billion to ₱20 billion. The stated objective behind this capital infusion is to restore the company’s stockholders' equity to a positive position within two years following the successful completion of the restructuring. This ambitious target underscores the depth of the financial challenges the group currently faces.
The distress at Donatela Resort is not an isolated incident for Dennis Uy’s conglomerate. Earlier in 2026, PH Resorts Group faced an even more significant setback with its flagship Emerald Bay casino project in Mactan, Cebu. The company officially lost control of the expansive 12.4-hectare beachfront property after failing to repurchase it from China Banking Corporation. This failure resulted in a substantial accounting loss of ₱7.00 billion for PHR in the first half of 2025, contributing to a staggering capital deficiency of ₱5.83 billion.
The Emerald Bay project, once envisioned as a grand integrated resort, was considered Uy’s most ambitious gaming endeavor, valued at ₱13.65 billion. Its loss, coupled with the recent foreclosure of Donatela, paints a stark picture of the challenges confronting the conglomerate as it navigates a period of significant contraction after years of rapid expansion.
Financial analysts have been closely monitoring Udenna Corporation and its various subsidiaries as they grapple with this turbulent financial period. The series of divestments and foreclosures has raised critical questions regarding the long-term viability and strategic direction of Uy's business interests, particularly those heavily reliant on borrowed capital. Repeated pledges of financial support from Udenna to PHR, along with commitments not to collect outstanding receivables from its subsidiary, further underscore the precarious financial position that necessitates such aggressive restructuring.
Dennis Uy’s business empire experienced meteoric growth during the previous administration, transforming him into a prominent figure in Philippine business. His strategy involved leveraging significant loans to rapidly build a diverse conglomerate with interests spanning shipping, logistics, petroleum, and tourism. This aggressive, debt-fueled expansion, while initially successful in acquiring numerous assets, now appears to have overextended the group’s financial capacity, leading to the current period of consolidation and divestment under immense pressure from creditors.
For Bohol’s vibrant tourism sector, the closure of Donatela Resort adds another layer of complexity. While Panglao remains a highly popular destination, the loss of a luxury resort, even one attributable to specific corporate financial woes rather than broader tourism downturns, could send ripples through the local economy. This includes potential impacts on employment for resort staff and various local supplier networks. The ultimate fate of the valuable coastal land and the resort’s facilities, now in the hands of Land Bank, remains uncertain, with possibilities ranging from a subsequent sale to another operator or a repurposing of the site.
As Dennis Uy's group pushes forward with its extensive restructuring plans, its future hinges on the successful execution of these complex financial maneuvers and the ability to attract new investment or secure more favorable financial arrangements. The permanent closure of Donatela Resort & Sanctuary serves as a potent reminder of the inherent risks embedded in highly leveraged growth strategies, especially when confronted with a dynamic and challenging economic landscape.