MANILA, Philippines—(UPDATE) Tycoon Henry Sy’s SM Investments Corp. is expanding its hotel business by building a new 200-room hotel in Davao City’s Lanang district adjacent to its shopping mall.
SM disclosed to the Philippine Stock Exchange on Monday that its wholly owned subsidiary, SM Hotels and Conventions Corp. had signed a contract with Carlson, a privately held global hospitality and travel company, for the opening of a Park Inn by Radisson hotel in Davao.
The hotel will be the very first Park Inn by Radisson in the Asia-Pacific region. Construction of the hotel is expected to start in the third quarter of this year and is scheduled to open by 2013.
Park Inn by Radisson is one of the hotel brands under Carlson and is the largest mid-market brand for hotels under development in Europe. Radisson is also managing SMIC’s upscale hotel in Cebu.
The 200-room hotel will be located within the 175,000-square-meter mixed-use complex owned and developed by SM shopping mall subsidiary, SM Prime Holdings, Inc. Other projects to rise in the complex are an SM Supermall and a convention center.
The signing of the contract to open a Park Inn by Radisson in Davao City, according to SM Hotels and Convention president Elizabeth Sy, was another concrete step toward fulfilling the vision of her father and SMIC founder Henry Sy Sr. to make the Philippines a “world-class tourist destination.”
“We believe that Davao is an ideal location for such an undertaking because of its robust economy, vibrant population, and excellent infrastructure, including its international airport. In addition, the Park Inn hotel will benefit from the business synergies that will be created with the other upcoming SM projects within its vicinity,” Sy said.
“With the tagline Sleep Well, Live Well, Park Inn by Radisson hotels offer a hassle-free, clean and comfortable stay at a reasonable price,” said Xerxes Meher-Homji, executive vice president and chief development officer at Carlson Hotels, Asia Pacific.
The hotel will also offer other amenities such as an all-day dining restaurant, meeting rooms, an outdoor swimming pool and a gym.