“For 2013: one in Iloilo, and two in Metro Manila -- Ortigas and Otis, Manila,” Roseann C. Villegas, Robinsons Land director for corporate public relations, said in a text message last Friday when asked about expansion plans of Go Hotels this year.
This is one hotel less than what the brand launched last year.
“We opened four hotels in 2012: Palawan, Tacloban, Dumaguete, and Bacolod. Nevertheless, Go Hotels will be ‘bullish but conservative,’ considering that there are a lot of other new hotels also coming up,” Ms. Villegas explained.
Go Hotels is an “essential service hotel”: which keeps costs low by allowing customers to book early, and by charging for lodging options that budget-conscious travelers may opt out on, Go Hotels’ Web site read.
Go Hotels has five branches nationwide -- Manila, Palawan, Dumaguete, Tacloban, and Bacolod -- and plans to grow its network to 30 hotels in the next five years.
Colliers International Philippines, a real estate services firm, noted in a December 2012 white paper, titled: “Top 5 Tourists’ Consideration About The Philippines,” that “hotels” ranked fourth among concerns, after “flights, fares, terminals,” “tourist attractions,” and “islands, beaches, resorts,” which came in first, second and third, respectively, and ahead of “security, safety,” which came in fifth, based on an online survey.
“Developers have been banking on increasing tourist arrival levels to justify new hotel development. In Metro Manila alone, there will be roughly 40 new hotels from 2012 to 2016. This reflects a room stock increase of over 16,000 units, more than double than the total stock as of end-2011,” Colliers International Philippines said.
Go Hotels is expected to ride on a wave of demand for “limited service” hotels, which are seen to attract more budget travelers.
“Towards the end of last year, the average length of stay for the economy hotel segment further dropped to less than two nights.
Moreover, the occupancy rate has been slightly below 60% in the last two years. Despite the lackluster performance, we find this as a potential growth opportunity for small-scale hotel developers particularly through the ‘limited service’ or ‘basic service’ hotel formats. This concept has already been introduced by major budget hotel chains such as Tune Hotels and Go Hotels,” the white paper read.
Tune Hotels, which has four branches in Manila, Cebu, Angeles City, and Makati City, is a “limited service” affiliate of Malaysian budget carrier AirAsia Bhd.
“We find this appealing to budget travelers who consider visiting the Philippines expensive. Consequently, this may encourage travelers to lengthen their stay in the long term,” Colliers International Philippines added.
For latest update on real estate development and its RA 9646, the Real Estate Service Act of 2009, visit www.ra9646.com.ph.
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