Legend Hotels plans to expand in the provinces

Despite the economic crisis and political uncertainties hounding the country, Filipino-owned hotel-chain Legend Hotels International Corporation (LHIC) is eyeing for an expansion of at least six hotel facilities in the country.

"We are instead very focused on doing business," said Kabayan Hotel Pasay (an LHIC brand) General Manager Joselito Felipe adding that it is the performance of their current properties that prompted them to expand. "The occupancy rate this year is up by 20 percent over last year and Kabayan Hotel for instance posted 97 percent in occupancy rate," he said.

"We will be expanding in six provincial areas in the Philippines including Cebu," said Felipe. He added that the expansion in Cebu would be a high-rise accommodation facility on a 10,000-square meter lot in uptown Cebu City.

He however did not divulge the particulars about the project except that it is a priority of the company and it will be materialized in two years time.

Another phase of the expansion is the construction of additional rooms for their Pasay and Cubao properties. He pointed out that with the record-breaking occupancy rate achieved by both Kabayan Hotels in Pasay and Cubao, they are confident that there is a huge market yet to be served.

"We are adding 140 rooms to the 190-room Kabayan Hotel Pasay to accommodate the rising demand for affordable, convenient and safe accommodation," he said.

He also mentioned that the hotel chain would also step outside the country borders and establish another hotel abroad. Details about it however remains confidential as it is still under study.

LHIC currently operates on a niche marketing strategy where each of their facilities is catering to different market segments.

The properties they currently operate includes Mabuhay Manor which is targeted for the balikbayans; Legend Villas which is for the corporate market; Legend Hotel Palawan for the leisure tourists and two Kabayan Hotels in Pasay and Cubao in Metro Manila which are for Overseas Filipino Workers, students and provincial travelers.

"The figure we got from POEA and the Overseas Workers Welfare Administration (OWWA) were very revealing. We learned that the Philippines deploys an average of 2,000 to 3,000 workers abroad daily," he said.

"According to the latest figures from POEA, there is a rise of 6.6 percent in deployed sea-based workers and a 5 percent increase in land-based workers between 2004 and 2005. Given the current and near-future economic climate, it is expected that these figures will continue to rise," Felipe added.

One contributing factor to the occupancy rate growth in both their Pasay and Cubao properties according to Felipe is their proximity to the market. "Kabayan Hotel Pasay for example is near the government offices like the POEA, transport points like MRT and LRT terminals and the airport. The one in Cubao on the other hand is for the land-travelers as they have the bus stations there."

LHIC's Kabayan hotels are accredited by the Department of Tourism as an economy standard hotel and its amenities are being upgraded to cater a wider market while retaining the core market of OFWs and domestic business travelers.

In the mean time, the Department of Tourism VII is encouraging tourism stakeholders to invest for more tourism infrastructure like hotel rooms in the progressive Cebu, which is fast becoming a tourism hub in the country.