SM’s hotel group to expand aggressively

The Hotel Investment Group of the Sy family’s flagship firm SM Investments Corp. (SMIC) plans to aggressively grow its presence in the lodging industry, preparing for the addition of 532 hotel rooms by the end of the year from a portfolio that currently includes 128 rooms.

The group said it expects a total of 660 hotel rooms by end-2008 and 1,394 guest rooms by the first half of 2010.

It owns the Taal Vista Hotel in Tagaytay City, which is being expanded to include an additional 132 rooms from the current 128 rooms.

Estimated to cost P650 million, the expansion will likewise add a 1,000-seater grand ballroom and six meeting rooms.

SMIC, in partnership with Accor, the owner of the Sofitel brand of hotels, will build a five-star, 400-room hotel in Mactan, Cebu estimated to cost P2.9 billion. The Sofitel Cebu Hotel is slated for opening at the end of this year.

Also in the pipeline is a two-in-one hotel building to be managed by Singapore-based Carlson Hotels Worldwide Asia Pacific and will break ground in the second half of the year.

Located right next to the Mall of Asia along Roxas Boulevard, the project, which will house a total of 580 guest rooms, is estimated to cost P2.4 billion.

The structure has been designed to have one hotel (The Raddison) with 500 upscale guest rooms and another hotel, The Regent, with 80 luxury suites including a 400-square meter presidential suite. These two hotels will boast world-class amenities such as business centers, swimming pools, fine-dining restaurants and extensive function facilities.

SMIC has also partnered with Microtel Inn & Suites to put up a 150-room hotel within the 60-hectare SM Bay Central in Pasay City. It will be strategically located near the SMX Convention Center and the SM Mall of Asia, one of the biggest malls in Asia.

Also in the offing is a resort hotel for Hamilo Coast’s Pico de Loro, envisioned to be an upscale hotel with 154 guest rooms.

“The development of SM Hotels is a realization of Mr. Henry Sy Sr.’s vision and belief in the progress of Philippine tourism. It is an integral part of realizing his vision on tourism to its full potential and thus it shall be for the long haul,” said Josefino Lucas, SM Property Group executive vice-president.

Merrill Yu, senior vice-president and in charge of SM Hotels, said the group is also looking at putting up 14 boutique hotels with the first two to break ground this year. While she declined to identify the sites, one hotel will have 50 rooms while the other will have 150 rooms.

The remaining 12 boutique hotels will be developed over a five-year period, Yu said. Each boutique hotel is estimated to cost about P1.4 billion.

Yu said the group is in talks with local and international groups to operate the hotels.