Tuesday, July 7, 2009 [ sunstar.com.ph ]
By Debra Magallon-Estero
A BUDGET boutique econotel is looking at expanding its room capacity in the province by opening four more branches in the next 18 months.
This, after Gran Prix Econotel Cebu experienced a “better than expected” occupancy rate barely a year after it opened in August 2008.
“The (result) is very surprising in Cebu,” Gran Prix Inc. president and chief executive officer Jan Vincent Kierulf said in an interview with Sun.Star Cebu yesterday.
On its opening day, Gran Prix Econotel Cebu was able to fill all its rooms. It had an average occupancy rate of 65 percent on its third month of operations.
“Usually, there is a gestation period for the first three months, but on the fourth month, revenues start to pick up,” he said.
Despite the fact that it is now a lean travel season, its latest occupancy rate has come in at an average of 60-70 percent.
Most of its guests include short-staying mobile professionals like medical representatives and business travelers. A good mix of tourists has also stayed at the econotel.
Smarter
“A lot of business travelers are now smarter, and they go to where they get value for money,” Kierulf said.
For its P999 standard room, which is good for two persons, the accommodation already comes with complimentary breakfast.
The econotel is also located in one of Cebu’s prime business districts, as it occupies two floors of the Coast Pacific Business Center at the corner of F. Ramos St. and Gen. Maxilom Ave. in Cebu City.
The econotel has 39 rooms.
He also attributes the popularity of the econotel to its ability to provide quality service to its guests at affordable rates.
“We have married the best of both worlds. We provide the affordability that is usually offered by pension and traveler inns, and the quality of our service is that of a five-star hotel,” Kierulf said.
“Our motto is high value at low cost, and there is no going wrong with this formula,” he added.
Mactan branches
Within the next 18 months, Gran Prix Inc. will open four more branches in the province, starting with a branch that is near the Mactan-Cebu International Airport. Negotiations for this branch are now underway.
The company is also looking at another property in Mactan where it can put up a Gran Prix resort hotel and another one in Bantayan Island.
Kierulf also said that after its participation in a recent franchising show, the company also got an inquiry to open a Gran Prix branch in Carcar town to accommodate tourists traveling to southern destinations in Cebu.
The Gran Prix Econotel Cebu is considered a showcase hotel for potential investors looking at investing into the Gran Prix brand.
“The Cebu econotel is our best so far out of five other econotels nationwide,” he said.
The Gran Prix brand is being offered for franchising and joint ventures. There are four concepts available—the resort, the econotel, the express inn and the econo-suites.
The express inn is ideal for locations that have small spaces, while the econo-suites will have a serviced apartment feature.
Franchise investments will range from P3.5 million to P15 million.
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