LOOK: A Hotel Group Plans to Open 14 Hotels in the Philippines in Just Five Years
Radisson Hotel Group, together with SM Hotels and Conventions Corp. (SMHCC), will be leading the project. The first of these new hotels is a 516-room property—expected to open in Cebu.
The hotel industry in the Philippines recorded an 80% occupancy rate last January in comparison to the 60 to 70% pre-pandemic rate—signaling a strong start for the industry this year. Given this, it is no surprise that companies are considering expanding their business here in the country.
And one of them is the Radisson Hotel Group.
In fact, Radisson Hotel Group has signed a deal with the Sy-led SM Hotels and Conventions Corp. (SMHCC) to open 14 new hotels in the Philippines within the next five years. In particular, the plan is to expand the hotels under Park Inn by Radisson to 20 hotels by 2028.
Radisson Hotel Group’s Expansion Outside of Metro Manila
Radisson Hotel Group has revealed in a statement that the first hotel from this planned expansion is set to open in Cebu. The hotel will be a 516-room dual-branded property—set to open in 2027. Moreover, Radisson Hotel Group’s partnership with SMHCC seeks to expand the Park Inn by Radisson brand to locations outside of Metro Manila. These include Isabela, Laoag, Sta. Rosa, and Olongapo.
SMHCC Executive Vice President Peggy Angeles says that the company will “develop where there is a [presence of] SM [mall] already, to complement the city.”
The Accommodations Sector is Poised to Make a Comeback in 2023
Travel is indeed making a comeback this year as seen in the Department of Tourism’s (DOT) target international visits for 2023. According to a report from Inquirer, the DOT says it is “eyeing to hit 4.8 million international visits this year after it breached the 1.7 million target it set for 2022 with 2.65 million international visitor arrivals.”
Given this, other sectors in the travel industry are expected to make a comeback this year as well, including the accommodations sector. This is evident with the Radisson Hotel’s Group planned expansion.
As a matter of fact, real estate management firm Colliers is highly encouraging developers to invest in hotel projects this year. Colliers also notes that there is an expected “annual average completion of 2,650 hotel rooms in the capital region, up from the average of 930 rooms delivered annually from 2019 to 2021.”
This is something business owners can take advantage of, while entrepreneurs and new players can enter the hospitality and tourism industry, given its positive track record.