Two 5-star hotels mull major renovations

A Philippine tourism boom is being anticipated with two more five-star hotels planning to undertake major renovations.

The Shangri-La Mactan Island Resort and Spa and the Dusit Hotel Nikko are following the lead of Manila Peninsula in applying for incentives with the Board of Investments (BOI) for their planned expansion.

The Shangri-La Mactan is allotting P335.565 million for the modernization of its 188 rooms. Shangri-La Mactan is located at Punta Engano Road, Mactan Island, Lapu-Lapu City, Cebu. Its modernization project involves the upgrading of structures and amenities of the whole ocean wing guestrooms.

Philippine Hoteliers, Inc., which owns the Dusit Hotel Nikko, is spending P520 million for the modernization of its 520 room facility.

Philippine Hoteliers is a member of the Thailand-based Dusit hotels and resorts chain.

The luxurious Manila Peninsula, which had been the first to apply with the BOI, is undertaking a P508.63 million renovation/modernization program that will involve its 249-room Makati tower, its lobby and upper lobby, as well as its main Rigodon ballroom and private function rooms on the ground floor.

Shangri-La Mactan’s modernization would entail the renovation and complete refurbishing of the rooms, ballroom, lobby/lounge and restaurant. New furniture and fixtures, carpet, lighting, kitchen equipment, etc. would be installed.

Its 188 rooms are comprised of 120 deluxe rooms, 12 lanai rooms; 40 ocean club rooms, 15 panorama suites and one presidential suite.

The modernization, however, will not result in an increase in capacity and no additional employment is expected to be generated.

However, the British Virgin Island-owned hotel and resort projects the payment of P1.206 billion in income taxes to the government over a 10-year period.

Although Shangri-La Mactan will enjoy P60.560 million in income tax holiday over a three-year period from the registration of its tourism facility project with the BOI, it would still result in a net benefit to the government of P1.145 billion.

Dusit Hotel Nikko, on the other hand, intends to renovate all of its 520 rooms, all its banquet facilities and restaurants, maintenance and engineering systems and construction of a new spa.

Manila Peninsula’s current renovation will be its fourth renovation/modernization project.

Manila Peninsula is located at the prime corner of Ayala and Makati Avenue and facing its rival the Makati Shangri-La Hotel. BOI registration will entitle Shangri-La Mactan and Dusit Hotel Nikko to enjoy income tax holiday as well as duty-free importation of capital equipment.

The BOI approved the Shangri-La Mactan, Dusit Hotel Nikko and Manila Peninsula renovation/modernization projects as such activity is a preferred activity under the 2006 Investments Priorities Plan involving tourism and tourism accommodation facilities.

Likewise, the amounts involved exceed the minimum project cost for hotel modernization allowed by the IPP of only P100 million. The three hotel renovation/modernization projects were approved on a pioneer status due to the magnitude of their investments.