Market on economy class hotels stands promising

CEBU, Philippines - The changing habits of most travelers all over the world, largely embracing the cost-efficient accommodation facilities have paved the way for a promising outlook of  economy hotel investments in the country.

Because of this, Cebuano economy hotel player Islands Stay Hotel chain is expanding its presence in major destinations in the country in the next couple of years, said Islands Stay Hotels president Jonathan “Jay” Aldeguer.

At present, there are two Islands Stay hotels in Cebu: one in Archbishop Reyes Aveue, near Cebu Business Park, and the other one is located in Lapu-Lapu City.

Soon, the company will open similar facility in Magallanes Street in the Cebu downtown area.

Aldeguer, who just came from an Economy Hotel Asia conference in Singapore, said that the world has recognized the economy hotel facilities as one of the fastest growing type of accommodation facilities in the world.

The economy hotel concept is a scale down version, meeting the demand of travelers, even with those who can afford.

Because of this and the encouraging performance of the Islands Stay chain, including those franchisees managed in Puerto Princesa, Aldeguer said the company is going to open more facilities in Bohol, Palawan, Metro Manila, and Cagayan de Oro City.

According to Aldeguer, the ease of  booking through online, the simplicity of accommodation requirements and cost efficiency are just few of the considerations why travelers nowadays have embraced the concept of staying in economy hotels.

However, he said while the economy hotel segment is fast growing, the active tourism market in the Philippines has also attracted even established high-end to three-star hotel investments.

He said there is now a strong interest from both local and foreign capitalists to invest on hotel facilities in the Philippines, including the economy hotel segment.

Islands Stay Hotels is a unique concept of providing cheaper alternative for room accommodation has successfully hit the tourists market, both local and foreign travelers, he said.

The company started its first hotel facility in Cebu located at Archbishop Reyes Avenue, adjacent to Cebu Business District (formerly Cebu Business Park), with 18 rooms, immediately followed by its 42-room hotel  in Mactan, near the Mactan International Airport in 2011.

Aldeguer targets to open up at least 300 value-chic, no-frills accommodations within Metro Cebu, as well as other parts of the country.

Considered as the country’s first value-chic hotel chain, Islands Stay Hotel is modeled after the new trend of no-frills accommodations. 

Islands Stay may be based on a new concept in the Philippines, but it’s already starting to become popular internationally. Such a trend pays attention to the new kind of traveler—resourceful and value-oriented.

The chain concentrates on pure and simple accommodations without the unnecessary fuss that results to high room rates hidden costs.

It’s a similar concept to low cost airlines finding that meals on the plane are one of the more practical things to do away with, in turn passing on the savings to the customers,” Aldeguer said.

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 free Wi-Fi connection in every room, cable TV, bar, and an iPod rental offer, among others. /JMD  (FREEMAN)