By Richmond S. Mercurio (The
Philippine Star) | Updated August 13, 2015 - 12:00am
The expansion is expected to double
Red Planet’s current hotel network of 10 as well as more than double the number
of its rooms to about 4,000 from its current 1,720. Photo from Red Planet
Facebook account
MANILA, Philippines - Red Planet
Hotels Ltd. is investing $85 million (about P4 billion) to double the size of
its budget hotel chain in the Philippines over the next five years, its top
executive said yesterday.
In an interview, Red Planet chief
executive officer Tim Hansing said the hotel operator plans to bolster its
operations in the country through its new Red Planet hospitality brand by
building 10 new hotels until 2020.
The expansion is expected to double
the company’s current hotel network of 10 as well as more than double the
number of its rooms to about 4,000 from its current 1,720, Hansing said.
Of the 10 new hotels to be built,
Hansing said three sites have already been secured in Cubao, Manila Bay and
Binondo, with construction of the hotels expected to commence within the year,
he said.
“The Philippines has been a great
market for us. We came in just at the right time. There was an under-supply of
value hotel accommodation. It’s just been fantastic for us to be at the right
place, at the right time,” Hansing said.
Red Planet Hotels, formed in 2010, is
a privately-owned regional hotel company focused on Asia’s expanding value
hotel sector.
The company recently ended its global
franchise partnership with Tune Hotels, the value hotel chain of the Tune Group
of Malaysian entrepreneur Tony Fernandes. It has already rebranded all of its
existing Tune Hotels into the Red Planet brand since July 10.
In the Philippines, Red Planet’s 10
operating hotels are located in Makati, Aseana City, Ermita, Quezon City,
Ortigas, Angeles City, Cebu, Cagayan de Oro, and Davao.
“We already have hotels in Davao,
Cebu, Cagayan de Oro and Angeles so at the moment we’re really going to
continue expanding mostly in Metro Manila,” Hansing said.
“We started here about three years
ago. We already opened 10 hotels and we have 1,720 rooms which I think is a
record in the Philippines to open so many hotels in such a short span of time,”
he added.
He said the company has already
invested some $80 million in the Philippines over the last three years.
He said their investments did not go
to waste as Red Planet is now the market leader in value hotels in the country.
He said the occupancy rate of Red
Planet Hotels locally ranges from 85 percent to 100 percent depending on the
location.
Hansing added the hotels have also been
receiving strong patronage from the local community as almost 90 percent of
their customers are Filipinos.
“This market is very strong. It’s the
biggest category in the hotel supply so there are more people wanting to stay
at this end of the market than anywhere else. If it’s a five-star hotel, there
are not many people who’d stay so it’s a smaller market,” Hansing said.
For this year, Hansing said the
company expects a 30 percent increase in revenue for its Philippine operations.
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