Metrobank to spend P500-M for hotel rehab

The Metrobank Group, through its realty unit Federal Land Inc., will shell out P500 million to renovate the Cebu Plaza Hotel, which has been closed for nearly two years.

Fedland president Alfred Ty said a major refurbishment of the 25-story hotel, now renamed Marco Polo Plaza Hotel, is ongoing in efforts to bring it to world-class standards to cater to the demands of international travelers. The hotel is expected to re-open in the first quarter of 2006.

Upon completion of the renovation, Marco Plaza Hotel will provide 335 guestrooms and suites including Marco Polo’s signature Continental Club Floor. The hotel project, which is the Metrobank Group’s first venture into the hotel services industry, will also feature a deluxe casino.

Ty said the Metrobank Group has foreign partners for the hotel project.

Hong Kong-based Marco Polo Hotel Group has (MPHG) been tapped by the Metrobank Group to manage and operate the hotel, which is 25 minutes away from the Mactan International Airport and five minutes from the business and commercial center of Cebu City. The Cebu hotel is in addition to MPHG’s Marco Polo Hotel in Davao.

Owned by the Hong Kong-based Wharf Holdings Ltd, MPHG is one of the leading hotel brands in the region.

"We are pleased to have appointed Marco Polo Hotel Group as our hotel management company. The strength of the Marco Polo brand and its reputation for service excellence and Asian hospitality are the natural complements to this important hotel," Ty said.

MPHG president Jeffrey Flowers, for his part, said: "The addition of the Marco Polo Plaza Cebu will further strengthen our brand presence in the Philippines which will create synergy in our business referral efforts.

We see this hotel has great potential in the leisure and meetings and incentives market. We will leverage our hotels in Asia and our worldwide sales network to position the hotel as the leading hotel in Cebu."

Cebu Plaza Hotel ceased operations in 2003 after its then owner, Pathfinder Holdings Philippines, was effectively foreclosed by Metrobank for a P900-million unpaid loan, for which the hotel was used as collateral.

Ty said the hotel is Metrobank’s contribution to the development of the country’s tourism infrastructure. "We are doing our best to respond to the clamor of the people of Cebu to reopen the hotel and its facilities as soon as we possibly can," he said.

Fedland has been in the real estate business for 33 years, specializing in high rise residential and commercial projects. It is the developer behind well-known projects including Bay Gardens condominium, a luxurious residential community located on Roxas Blvd.; executive condominium Oriental Gardens on Chino Roces Ave.; and the 1,800-square meter events hall Le Pavillion also on Roxas Blvd.

The company earlier launched Marquinton or Marikina Town Center, a P5-billion masterplanned community that will house medium-rise residential condominium buildings and a mini-mall.