Developer to invest P1.1B for resort and spa expansion

CEBU, Philippines - The good prospects in Cebu’s tourism industry has prompted the developer of Crimson Resort & Spa on Mactan Island, to invest P1.1 billion for expansion that will be completed before the end of 2017.

The newest resort facility in Mactan, developed by Filinvest Land Inc., (FLI) will add about 60 to 100 more rooms, to add up to its existing 209 rooms and villas.

In an interview with James M. Montenegro, the area general manager for Crimson and Quest Hotel in Cebu, said that aside from adding more rooms, the resort will also build more function facilities, and restaurants, among others.

The four-year-old posh resort is now utilizing about 60 percent of the total 6.9 hectare inside the integrated property developed by FLI, including the exclusive sea-side subdivision called “Seascapes.”

Montenegro said the expansion plan will start towards the end of this month, and is targeted to be completed in the next three years.

“Demand for Cebu is generally good,” he said adding that despite the two disasters that happened last year, both Filinvest hotel properties, Crimson and Quest registered encouraging average occupancy rates in 2013.

Aside from its expansion in the Mactan property, the company is also set to open up another Crimson Resort in Boracay.

Although, he admitted that the hotel properties have lost some businesses, due to cancellation of bookings and events after the October 15, 2013 earthquake, and the super typhoon Yolanda in November, the fairly good performance in the first two quarters last year was able to pull up the year-end performance for both hotels.

Montenegro, who also manages the company’s three-star hotel located adjacent to Cebu Business Park, said that for Quest alone, the business hotel posted an average occupancy rate of 70 percent in 2013, while Crimson ended the year with 75 percent average occupancy rate.

 â€œWe’ve lost a lot of businesses after the two disasters, but we are fortunate to gain good buffer until October. But, we immediately gained back in the first two months this year,” Montenegro said.

Both hotels lost about 10 percent to 15 percent businesses immediately after the two disasters, however, he said both properties ended the year with encouraging performance, while hotels in Cebu also got good businesses after the typhoon as it became the hub for international relief operations coming from all over the world.

This year, Montenegro said the two hotel properties of the Gotianun-owned real estate development company, FLI are doing “quite well” in the last few months.

Domestic MICE (Meetings, Incentives, Conference and Exhibitions (MICE) is starting to move up, and has become the one of the main growth drivers for Crimson, and Quest hotels.

While Cebu has already gained the world’s spotlight in terms of tourism and investment charms, Montenegro hopes that the province will be able to get more of the growing international MICE events, as well as the regional MICE bookings in the short term.

For Crimson, and Quest, he said efforts are being mobilized now to activate and expand its international network to sell Cebu to the global market. The company is planning to open up a marketing office in China. (FREEMAN)