Tune Hotels operator eyes P3.2-B investment to open more branches

Red Planet Ltd., operator of Tune Hotels in the Philippines, is ramping its planned investments and expansion plans to cement its position as the largest internationally owned and operated hotel in the country.

In a briefing Tuesday, Red Planet Hotels founder and senior vice president for acquisitions Ken Kerr said the company could add up to six more hotel branches, which would entail investments of up to $72 million, or about P3.2 billion.

The additional branches, which will add some 1,100 new rooms to the company’s portfolio, are expected to be put up in Ermita and Binondo, both in Manila; Cubao in Quezon City; Fort Bonifacio in Taguig City; Sta. Rosa, Laguna; and Alabang, Muntinlupa City, Kerr said.

The proposed branches, to be completed between late 2016 and early 2017, will be on top of the company’s aggressive plan to end 2014 with a total of 10 branches of about 1,720 rooms—a testament to the company’s confidence and commitment to the Philippine tourism industry.

Red Planet earlier set the launch of its ninth branch yesterday—the 200-room Tune Hotel Aseana City in Parañaque City. The 10th Tune Hotel branch will open in November this year on Ayala Avenue.

“Not only are we growing in numbers, but we have received a great deal of acceptance among the traveling public for the value of money we provide,” said Red Planet country manager Sahlee Zaldiva. “The expansion will allow the company to take advantage of the 24-percent growth in tourist arrivals projected by the Department of Tourism for 2014. We are fully committed to helping expand and grow with the international and domestic travel industries in the Philippines.”

Red Planet Hotels CEO Tim Hansing in a separate statement yesterday said that the Philippines would be “perfect platform to drive the Southeast Asian expansion of Tune Hotels because of the country’s acceptance of new and inspiring brands that enable travel to the wider population.”

Also, Kerr added, the company will start by next year to look at prospective sites in the provinces, where they can build more Tune Hotels, each having at least 120 rooms. Among those being considered are Bacolod, Iloilo, and Puerto Princesa in Palawan.