Islands Group mulls franchise offer for chic hotel subsidiary

CEBU, Philippines - Fast tracking its plan to provide affordable accommodation facilities to the growing number of tourists visiting the different destinations in the Philippines, the Islands Group is currently studying to offer a franchise package for its Islands Stay Hotel Inc., subsidiary.

In an interview yesterday, Islands Group president and chief executive officer Jay P. Aldeguer said that an effective franchise system for its hotel arm is being studied.

“We are really looking at a franchise type set up. Going joint venture with multiple groups might be difficult to monitor and maintain. But, if there’s a group with several possible locations, we may consider a joint venture deal,” he said.

According to Aldeguer the company had started talking with several interested parties for the franchise, or other options of partnerships, but no Islands Group still has to official launch the franchise package offering of Islands Stay soon.

“There is so much potential [in this kind of accommodation],” Aldeguer told The Freeman yesterday.

Islands Stay, of which two facilities are currently opened in Cebu, is trying to pioneer the introduction of value-chic hotel accommodation in the Philippines.

In the next three years, the company plans to open similar facility in six locations in Cebu, while, it is also negotiating possible operations in other areas like Manila, Davao and Baguio.

Although, it is positioned as affordable and value-for-money hotel, Aldeguer said the new hotel brand provides the basic necessities of a traveler, such as Internet WiFi free in every room, hot and cold, cable TV, and bar, and an iPod rental offer, among others.

Already the company has invested at least over P20 million for the establishment of two Islands Stay Hotel in Cebu, located at the Archbishop Reyes street, adjacent to the Cebu Business park, and one on Mactan Island.

“Our business model allows us to move fast,” Aldeguer said

The 35-room Islands Stay Hotel near Ayala Center Cebu is now open for business, although it is still on a “dry-run” operation

Its room accommodation description is labelled after the Group’s mother company Islands Souvenirs Inc. (ISI) T-shirt sizes, which is small, medium, large and extra –large.

The Mactan facility which will also be opened soon will have bigger accommodation facility of 60 rooms.

According to Aldeguer, this concept has been thought of by the company few years back, realizing the need to meet the demands of new lifestyle and requirement of travelers today.

“You see, travelers need only a room [no frills room]. They only sleep in the hotel and not usually linger, they want to explore the place most of the day. There seems to be to be a changing travel-lifestyle of people today. They are direct to the point. Even our check-in process is much faster, ”said Aldeguer.

The Islands Group operates several subsidiaries, such as the Islands Banca Cruises; retail chain Islands and More, Islands Shuttle Services, the Talima Adventure Park, among others.