Budget hotel eyes P2-B PH expansion in next 5 years

MANILA – Budget hotel Red Planet Hotels is eyeing to add at least four hotels in the next five years, spending an average of PHP500 million each or around PHP2 billion.

Red Planet Hotels chief executive officer Florent Humeau said the company aims to expand in the Philippines through the acquisition and management of existing hotels aside from doing greenfield projects.

“We’re planning it next year, one (hotel) every year,” Humeau said in an interview Monday at Red Planet BGC, the company’s 14th and newest hotel in the Philippines.

He said Red Planet is planning to expand outside Metro Manila, including Iloilo.

The budget hotel also targets to have a presence near concert venues.

Aside from company-owned hotels, Humeau said Red Planet is looking into bringing the franchising concept of the business into the country.

Franchising is Red Planet’s business model in Thailand.

Currently, all 14 Red Planet Hotels in the Philippines are company-owned.

Meanwhile, Red Planet will officially launch its BGC hotel on May 30, its biggest hotel in the Philippines with a total of 245 rooms.

It is also the first budget hotel inside BGC.

The new hotel also has 98 parking slots, exclusive for its clients and can be used for free.

Being in the prime business district in Taguig City, Humeau is hoping that the Red Planet BGC will contribute the largest share in the company’s revenue, having the most number of rooms and highest rate compared to other Red Planet hotels in the country at PHP2,565 per night.

Humeau is also optimistic that Red Planet’s revenues in the country will grow by 20 percent or higher compared to its performance last year with the continuous recovery of the tourism sector. (PNA)