Red Planet Hotels expands PH presence
Hotel developer and leading Tune Hotel franchisee Red Planet Hotels Inc. is scaling up its presence in the Philippines with the opening of three new hotels, expanding its local chain to 10 key locations by yearend.
In a phone interview, Red Planet chief executive officer Tim Hansing told the Inquirer that the company would invest around $80 million in the Philippines for its growing no-frills hotel chain. This investment would cover 10 hotels, seven of which are already up and running.
In two to three weeks, the newest Tune Hotel will open in Ortigas while, later this year, Red Planet will open another hotel within the Mall of Asia area. Another is set to open in Makati City. With the new hotels, Red Planet’s Philippine hotel portfolio will rise to about 2,500 rooms.
The chain offers affordable accommodations ranging from $15 to $25 a night.
The company’s seven existing hotels are in Makati City, Cagayan, Davao, Quezon City, Cebu, Malate (Manila) and Angeles (Pampanga).
According to Hansing, the hotels have already established themselves in their respective markets, enjoying an average occupancy rate of 85 percent.
Red Planet’s latest investment is part of an expansion program throughout Asia-Pacific, of which the Philippines—Southeast Asia’s fastest-growing economy—is a crucial part.
“The Philippines is one of the first markets … where we managed to grow quickly. At the moment, it accounts for about 40 percent of our revenues. It’s an extremely important part of our business and one of the largest,” Hansing said.
After gaining a foothold in the Philippines, Indonesia and Thailand, Red Plant has gone on to northern Asia, breaking into the Japanese market. The company will make an initial $100 million investment in Japan over the next six years to open 20 hotels in and around Tokyo and other key cities by 2020. The first Tune Hotel opened in Naha, Okinawa, last year.
Also, Red Plant is investing around $70 million in Indonesia and up to $40 million in Thailand. It is also expanding its presence in Taiwan and South Korea.—Doris C. Dumlao
