Budget Hotel Chain Continues to Thrive After 15 Years, Eyes Further Expansion
More provincial locations and a franachise concept are in the pipeline for Red Planet Hotels.
Countless businesses come and go, and many do not even make it past its first year. Data from LinkedIn shows that one in five businesses actually closes down before its first anniversary.
This makes it more awe-inspiring to see businesses that continue to thrive many years and even decades after they started. This rings true for Red Planet Hotels, which has remained strong and resilient in the budget hotel sector for 15 years.
Founded in 2010, Red Planet Hotels has established itself as one of the leading budget hotel companies not just in the Philippines but also in Asia.
Red Planet Hotels’ Presence in the Philippines
Red Planet Hotels has established itself in different cities in Metro Manila as 10 of the company’s 14 hotels are found within the region. Its budget hotels are found in the business districts of Makati and Pasig and even in different parts of Manila and Quezon City.
Its 14th and most recent hotel fully and officially opened its doors just last year in Bonifacio Global City. Red Planet BGC and its 245 rooms represent an investment worth at least Php500 million, according to a report.
The remaining four of Red Planet’s hotels are found in key locations outside of Metro Manila, including Cebu, Cagayan De Oro, Davao, and Angeles City in Pampanga. The hotel in Angeles is Red Planet’s first in the Philippines.
Its presence in such locations have contributed to the tourism and hospitality industries in the aforementioned locations, providing both locals and tourists with quality and budget-friendly accommodations.
Red Planet Hotels’ Presence in Asia
Through the years, Red Planet Hotels has worked to expand its presence to other neighboring Asian countries. This goal has been met with unexpected challenges, such as the COVID-19 pandemic.
In an interview, Red Planet CEO Florent Humeau said that the pandemic led them to close hotels in Japan and Indonesia. While the company has focused more on the core business in the Philippines, it likewise continues to thrive in a neighboring Southeast Asian nation.
To date, Red Planets has five franchised establishments in Thailand, including locations that are popular with tourists such as Pattaya and Phuket.
More Hotels and a Possible Franchise Concept
Fifteen years after it was founded, Red Planet still shows no signs of slowing down with its growth and expansion. Last year, the company announced that it is looking to add at least four more hotels within the next five years. Red Planet is also eyeing expansion outside of Metro Manila, including provinces like Iloilo.
Like its BGC hotel, Red Planet is looking to spend Php500 million for each of the planned hotels.
In addition, Red Planet is eyeing the option of introducing the franchising concept of its business to the Philippines, which is already present in Thailand. The budget hotel chain is considering locations such as Cagayan de Oro and Davao, according to a report.
As Red Planet continues to remain resilient and competitive in the budget hotel sector, the Philippines’ tourism and hospitality industries are sure to see more of the brand in the coming years.
