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SM plans more Park Inn hotels

Posted on March 24, 2013 09:44:13 PM [ BusinessWorld Online ]
DAVAO CITY -- SM Hotels and Conventions Corp., the tourism arm of SM Prime Holdings Inc., plans to open a total of five hotels in the country in the next five years that will carry the Park Inn brand, a top company official said here on Friday last week.
  SM Hotels President Elizabeth T. Sy said at the press conference for the opening of Park Inn by Radisson Davao that all the planned hotels will rise beside SM shopping malls.
Ms. Sy said although the plan has yet to be finalized, among the areas being considered are SM shopping malls in Clark Freeport Zone, SM North Edsa, as well as those in the cities of Bacolod and Iloilo.
Ms. Sy estimated that the company will spend at least P500 million for each hotel. All five hotels are expected to have a total of 1,000 rooms.
Among the factors that will be will considered, she said, is the volume of business travelers in these areas, noting there must “be that excitement” that will justify spending on such facilities.
The Park Inn brand is under Carlson Rezidor Hotel Group, which signed a 17-year management agreement with Ms. Sy’s company. The Park Inn by Radisson Davao is a 204-room mid-level hotel with six junior suites.
The company invested about P750 million in building the hotel, which is beside not only SM Lanang Premier, touted to be the biggest SM shopping mall in Mindanao, so far, that opened in December last year, but also the 5,000-seater SMX Convention Center.
Ms. Sy said that when the mall still in the drawing board, her brother, SM Prime President Hans T. Sy, suggested that the group also put up a hotel beside it, considering there was also a convention center that was to be built in the 10-hectare area which used to be known as Lanang Golf and Country Club of the Dakudao family.
Simon C. Barlow, president for Asia-Pacific of Carlson Rezidor, said his company was optimistic on prospects for more Park Inn hotels that will cater to the country’s growing tourism industry.
In his presentation in the same event, Mr. Barlow estimated that the gap between accommodations and demand -- both foreign and local -- will rise to about 76,000 rooms by 2016 from some 39,000 last year.
“My vision is to have a Park Inn in every SM mall and there are 45 SM malls -- although we don’t have plans for that at this point, but that is I think what we could do,” said Mr. Barlow.
He added, however, that there is already a “strategic agreement” on the next four hotels that have yet to be built. “We bring brand, we bring people or expertise and we bring connectivity to the global market,” he added, explaining that the company gets paid for the brand and gets a share of revenues.
SM Prime shares lost 20 centavos or 1.09% to close at P18.20 apiece on Friday last week from P18.40 each last Thursday. -- CQF         

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