SM Hotels & Conventions Corp.,, a unit of SM Prime Holdings Inc. and Radisson Hotel Group on Wednesday disclosed a plan to develop 14 new hotels in the Philippines over the next five years.
RHG said during the signing of master development agreement the partnership would expand the group’s hotel portfolio in the Philippines to 20 by 2028.
Under the agreement, SMHCC will have the exclusive development rights for a five-year term to expand RHG’s Park Inn Radisson brand across the country.
SMHCC executive vice president Peggy Angeles said the company would invest less than P15 billion to develop the 14 hotels.
Angeles said the partnership comes at a very opportune time as the domestic hotel industry started to recover from the impact of the pandemic.
She said hotel occupancy across its portfolio in 2022 surpassed the pre-pandemic levels of 2019.
“Year-to-date, we are also ahead of our budget. With flights increasing in the country and more regional flights coming in, our hotels not only in National Capital Region but also in various destinations continue to receive increased tourist arrivals,” Angeles said.
RHG and SMHCC started their partnership in 2010 with the launch of Radisson Blue in Cebu and opening of five Park Inn by Radisson hotels in Bacolod, Clark, Davao, Iloilo and Quezon City.
“We are grateful to extend this landmark partnership with SMHCC today, which underscores our shared vision to offer relevant products by delivering innovative brands that cater to the ever-evolving needs of travelers in the Philippines,” RHG executive vice president and global chief development officer Elie Younes said.
The first hotel to be built under the new partnership is a 516-room dual-brand property in Cebu City which is scheduled to open in 2027.
Other potential sites for expansion include Isabela, Olongapo, Laoag, Fairview, Dasmarinas and Sta Rosa.
Park Inn by Radisson is RHG’s midscale to upper midscale brand that offers good quality accommodations to travelers.
Meanwhile, Premium Leisure Corp., an affiliate of SM Investments Corp., may consider participating in the planned privatization of Philippine Amusement and Gaming Corp.’s self-operated casinos, an executive said Wednesday.
PLC president and chief executive Armin Antonio Santos said in a news briefing following the annual stockholders meeting of SMIC the company might consider the assets of Pagcor as part of its overall expansion plans.
“If and when Pagcor decides to privatize its assets, we will look into the terms and conditions if we can participate,” Santos said.
Santos said that aside from Pagcor’s assets, PLC was also looking at expansion opportunities within the Pagcor-sponsored Entertainment City and other properties outside Metro Manila.
“We are looking at various investment opportunities in gaming space, within Entertainment City outside Metro Manila where a wide range of assets are being offered,” Santos said.
PLC is a co-licensee in City of Dreams Manila, the integrated resort and casino in Entertainment City. City of Dreams was built in partnership with Hong Kong-based Melco Resorts & Entertainment Corp.
Meanwhile, SMIC senior vice president for finance Franklin Gomez said the group earmarked up to P90 billion in capital expenditures for 2023.
Bulk of this year’s spending was allotted for property unit SM Prime Holdings Inc., while the balance will be spent by its banking and retail subsidiaries.
SMIC is bullish on more countryside developments in 2023, saying growth prospects nationwide look more vibrant with more people gaining employment. A large chunk of the remittances from overseas Filipino workers are also going to their families in the provinces, it said.
Increasing connectivity and the level of talent are providing more impetus for expansion among business process outsourcing firms in these areas, it said. BPO revenues are now at par with OFW remittances at over $30 billion.
“Given these, opportunities for growth in the Philippines remain high. Heading into 2023, we remain optimistic as a group. The majority of our expansion is focused on the regions especially in emerging regional centers outside of Metro Manila. Our businesses are well-positioned and have clear strategies to participate in the country’s strong growth,” SMIC president Frederic DyBuncio said during the company’s annual stockholders’ meeting Wednesday.