Kabayan hotels benefit from domestic tourism

CEBU, Philippines – Value hotel chain Kabayan Hotels is taking advantage of the projected growth in domestic tourism this year.

Legend Hotel International Corporation vice president and chief operating officer (CEO) Patrick Favoreal said that Cebu, being the hub for trade and commerce as well as travel in the Southern Philippines, is a good location for the chain to embark on an aggressive promotion.

Although the hotel is yet to establish its presence in Cebu, Favoreal said the company is currently forging strong partnership deals with travel agencies here, deeming Cebu as one of the country’s important gateways for travelers.

The chain is going to capitalize on its affordable accommodation packages, which is expected to attract the domestic market, he said.

The company, which operates 972 rooms combined through its different locations in Metro Manila, Palawan through its Kabayan Hotel chain and Mabuhay Manor Hotels has recognized Cebu’s big contribution to its hotel business.

While the company is prioritizing its investment or expansion ventures in Metro Manila, and Palawan areas, Favoreal said Legend Hotel International is not discounting its earlier plan to put up a P250 million to P300 million, for an establishment of a 600-room City Resort Hotel in Cebu.

“We have been eyeing Cebu for a long time now,” said Favoreal adding that the company is planning to expand into the lucrative but highly competitive temporary accommodations market in Cebu.

“The next step for us is to build hotels here,” he said.

The Legend Hotel group owns a 1.3-hectare property along Archbishop Reyes Avenue, situated just beside the city’s business center, the Cebu Business Park. The property used to be the location of the historic Magellan Hotel.

Favoreal said should the confidence of investors in the Philippine economy starts picking up, the company is looking at breaking ground within the next two to three years.

He identified key cities like Cebu to provide a significant market for their various brands in Metro Manila. Always on the lookout for quality budget accommodations, overseas Filipino workers, entrepreneurs and traveling professionals prefer staying in a Legend Hotel, he added.

“Returning OFWs come in from abroad, they also spend a night in Manila in Legend’s Mabuhay Manor and Legend Villas before heading off to the provinces,” said Favoreal.

The Legend Group, which maintains close to 1,000 rooms in 11 properties mostly in Metro Manila as well as the Legend Palawan in Puerto Princesa, is wrapping up several projects, which aims to solidify its position in grabbing the domestic travel market.

“In most cases the domestic market has long been overlooked by international hotel brands that are why we are capitalizing on them now,” Favoreal said.

He noted that for every foreign traveler in the country, there are 11 Filipinos moving around the country. However, close to 70 percent of the business here are controlled by the high-end hotels catering to foreigners.

LHI is owned by Armadillo Holdings Inc., (AHI) a 100 percent Filipino owned company, which is engaged in hospitality and accommodation, leasing laundry and garments, and real estate developments. — Ehda M. Dagooc