Despite a slower recovery in tourism in the Philippines compared to other countries, Red Planet Hotels gears up for expansion, seeing a demand for comfortable, convenient and affordable accommodation facilities for domestic and international tourists.
In an interview over the weekend ahead of the official launch of its flagship property in Bonifacio Global City on May 30, Florent Humeau, chief executive officer of Red Planet Hotels, said the group sees a huge opportunity for the budget hotel segment in the Philippines compared Thailand and Indonesia which have and oversupply and whose markets have been saturated.
“I don’t see the revenge travel happening (here) compared to Thailand, Japan, Indonesia,” said Humeau, adding there are still opportunities to attract tourists from China, US, Japan and Korea.
Huge arkets like India remain untapped because of the absence of a direct flight to the Philippines.
“DOT (Department of Tourism) is working on the Indian market which is growing exponentially in China and, Malaysia,” he said.
Humeau said infrastructure connectivity is key to attracting tourists.
“The first step is to make it as easy as possible for people to travel. Soa direct flight is the most important. We also need infrastructure that will also support (destinations)… improved roads, the kinds of transportation to be able to reach those destinations the most easy way,” Humeau added.
Since 80 percent of Red Planet’s clients are domestic travelers – from both corporate and family – Red Planet noted a rise in local air fares such that it is cheaper to travel to another country than to a domestic destination.
With domestic tourists as its core, Red Planet said business has grown 20 percent and occupancy rates have reached 75 percent.
“Our hotels have always been doing very well here,” said Humeau, adding that of the 19 Red Planet Hotels in the region, 14 are in the Philippines.
Humeau said the Philippine operations have remained resilient even during the pandemic since Red Planet Hotels were used as quarantine facilities.
Unlike in Thailand where Red Planet has more franchised hotels, the strategy in the Philippines has always been to build, own and manage the building.
Red Planet is on the lookout for possible management partnerships to accelerate expansion.
“Ownership gives us the control. Management helps us protect the brand quicker while (enabling us) expand faster,” Humeau said.
With a good coverage of locations in Metro Manila, Red Planet Hotels is eyeing sites in Visayas and Mindanao, targeting to open one facility every year in five years.
Red Planet also sees opportunities to accommodate medical tourists since its locations are near medical institutions.
The chain now has the most number of rooms in its segment in the Philippines, totaling 2,435 nationwide.
Red Planet BGC The Fort is the group’s biggest investment so far.
Totalling 245 rooms, the 19-storey facility offers the most affordable rate in the area at P3,000 per room per night.
Red Planet BGC The Fort is located on 10th avenue corner 40th street.
Red Planet Hotels is owned by Japanese firm Polaris Holdings Co. Ltd. through subsidiary Polaris Asia Co.Ltd.
