MANILA, Philippines – Sy-led SM group is planning to build one hotel each year starting in 2014, mostly under the mid-range Park Inn brand and starting in Clark, Iloilo and Bacolod, a company official said.
SM Hotels and Conventions Corp. (SMHCC) executive vice president Reynaldo Villar said the plan is to build these hotels in key areas integrated with the conglomerates’ other establishments.
“We’re looking at opening hotels maybe early next year. We’re looking at Clark, Iloilo and Bacolod. Our target is to have it built near the company’s other establishments,” he said in a media discussion on leisure, tourism and gaming organized by the Philippine Stock Exchange (PSE) and Asiamoney magazine.
“The plan is to always integrate a mixed development area with a mall, hotel and convention center within striking distance with each other,” he added.
Included in the company’s portfolio is the newly-opened Park Inn by Radisson Davao as well as luxury hotel Radisson Blu Hotel in Cebu City.
The Park Inn by Radisson brand is under the leading global hotel firm Carlson Rezidor Hotel Group with 126 hotels worldwide and 53 hotels currently in the pipeline.
Villar said the planned hotels will be a standard 150- to 200-room luxury hotels with the usual set up involving conference rooms, dining halls, small meeting rooms and a gym, among others.
Construction period is under a year so the yearly target will likely be meet, he said.
SM group is also looking at the growing MICE — meetings, incentives, conventions and exhibitions — and expanding tourism markets.
With the government’s aggressive campaign to achieve the 10 million tourists target by 2016, demand for hotels and accommodations will spike up.
The Sy-led group wants to take advantage of this opportunity by mixing these establishments in one development area.
Currently, SM group has 3 maximum capacity convention centers nationwide that are integrated, or will be integrated, with hotel establishments later on. These are:
- SMX Manila beside SM Mall of Asia in Pasay City where a 350-room Conrad Manila luxury hotel will be built and run by international brand Hilton Worldwide. Construction is expected to be finished by mid-2015.
- SMX Davao in Davao City where the 204-room Park Inn by Radisson Davao was opened last March; and
- SMX Taguig beside SM Aura Premier in Taguig City. Villar said there are no plans to build a hotel yet. The land where SM Aura stands is still under legal battle between the Sys, Ayalas, state-run Bases Converson and Development Authority (BCDA) and the local government of Taguig City.
“We want to focus on the MICE market. With 10% growth every year, it’s a lucrative market. About 30% to 40% of the business in terms of revenues of SM Hotels and Conventions come from this segment,” he said.
SM Hotels and Conventions Corp., part of the SM Prime Group, also handles Taal Vista Hotel in Tagaytay and Pico Sands at Hamilo’s Pico de Loro Resort in Nasugbu, Batangas, among others. – Rappler.com
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