DAVAO CITY -- As the Carlson Rezidor Hotel Group and SM Prime Holdings, Inc. prepare to open their third Philippine hotel in December, the partnership is going slowly on expansion plans that depend on improved accessibility outside the country’s major cities.
The upcoming medium-scale hotel under the Park Inn by Radisson brand, located in Clark, Pampanga, will be the first in Luzon after the Radisson Blu in Cebu that opened in 2010 and the Park Inn by Radisson Davao in 2013.
“Slowly and gradually, that portfolio of Park Inn by Radisson hotels will grow and move in secondary and tertiary cities [as] the country continues to grow,” Andre De Jong, Carlson Rezidor vice-president for operations in Southeast Asia and Pacific, said in an interview here.
“We are looking at opportunities that would come in locations where it would make sense. Hence, those destinations at this point in time where there’s a demand for hotels. Other destinations may need a little bit longer to grow, to get connected to and to really justify the existence of 100- or 200-room hotels to make business sense out of that,” he added.
The immediate expansion plans include a hotel in Metro Manila and another in Cebu, in the reclamation area.
“The Philippines is growing infrastructure-wise. Roads, transportation -- everything is improving, and when those places get connected, there will be more business activity, justifying international hotel operations,” he added.
At present, Mr. De Jong said, about 75% of the partnership’s client base consists of local travelers.
The Carlson Rezidor group is also exploring other partnerships, particularly for opportunities in the resort segment for areas such as Palawan and Boracay, two of the country’s known beach destinations.
“Will we see more potential as well? Yes, more so in the resort business, and on the back of improved connectivity and accessibility, these destinations will only grow in popularity,” Mr. De Jong said.
“But, I reckon that would be 2017-2018… they take time,” he added.
For 2016, the hotel management group has 10 hotels lined up for opening across the Asia-Pacific.
ASEAN INTEGRATION
Mr. De Jong said the group also anticipates growth in the hotel industry with the economic integration of the Association of Southeast Asian Nations (ASEAN), beginning December this year.
“If you look at ASEAN as a whole, the hotel business will benefit from that, [given the] convenience of travel when the restrictions are lifted; it would be far easier to get around, be it for leisure or business,” he said.
The Carlson Rezidor has signed up for their first hotel in Vietnam and several in Indonesia.
“There are other developing countries like Myanmar and Cambodia where we see a lot more attractions when it comes to hotel opportunities. These countries offer great opportunities as they grow, open up, [and] stabilize economically and politically,” Mr. De Jong said.
“These countries are individually growing; some are faster, some are more successful, but as a joint platform (ASEAN Economic Community), that growth will only multiply, in my view, as a powerful economy,” he said.
The Carlson Rezidor has more than 1,370 hotels in operation and under development with 220,000 rooms across 110 countries. The group’s brands are Quorvus Collection, Radisson Blu, Radisson, Radisson Red, Park Plaza, Park Inn by Radisson, and Country Inns and Suites by Carlson.
source: Businessworld
