Microtel in P3-B expansion program

MANILA, Philippines - The local operator of Microtel Inns & Suites is joining the major players in the hospitality industry through a P3-billion expansion program that will make it the largest hotel chain in the Philippines in the next few years.

Microtel Inns & Suites (Pilipinas) Inc. of the Phinma Group is banking on the growth in foreign and domestic tourists as well as business travellers in key parts of the country, a company executive said.

“Until 2016, we are investing P743 million to complete the 25 hotels we are targeting. Right now we have 13,” said Microtel Pilipinas chief finance officer Demetrio P. Lucila.

Total project cost for the expansion program is P3 billion but Microtel Pilipinas, which will spend around P743 million as equity in the hotel construction, is looking to partner with land owners and interested parties, Lucila said.

“We are going to be the largest in terms of the number of hotels,” he said, adding that Microtel Pilipinas will operate 1,500 rooms by 2016 or 2017 from the current 746 rooms.

Microtel by Wyndham claims to have pioneered the no-frills hotel concept in the Philippines that targets the mid-market business and leisure travellers.

For this year, Microtel Pilipinas is opening its Technohub branch in Quezon City. Construction is ongoing for a new facility at the Mall of Asia complex and another one in tourist destination Coron in Palawan.

Lucila said the hotel operator is also negotiating for two more properties: onein Dumaguete and one in either Tuguegarao or Bohol. Microtel Pilipinas also plans to put up hotels in Cebu, Butuan, Cagayan de Oro, Clark, Iloilo and Metro Manila, he said.

“We see the expansion of the market into these areas because airfare is affordable. And because of the influx of tourists in the country, we have to support the drive of the government to encourage tourists,” he added.

The Department of Tourism targets attracting 5.7 million foreign visitors this year, up from 4.68 million in 2013.

Lucila said the local hotel industry will get an additional boost should key infrastructure projects are completed and the territorial dispute between the Philippines and China subsides.

Microtel Pilipinas is the Philippine master franchisor of Microtel by Wyndham while Microtel Development Corp. (MDC) is a joint venture partner in several Microtels and manages all Microtels in the Philippines. Wyndham Hotel Group is one of the world’s largest and most diverse hotel company with approximately 7,500 hotels and 55 brands worldwide.