MANILA, Philippines — Red Planet Hotels is spending P2 billion to build four more hotels in the Philippines in the next five years.
Red Planet CEO Florent Humeau said the budget hotel intends to start acquisitions or management of hotels to expand its presence in the country.
“We’re planning from next year one every year. Four hotels in the next five years,” he told reporters.
He said the company estimates an average investment of P500 million would be needed for each hotel to be added to its network.
“If there is a good opportunity, existing building, existing hotel that we see high potential, we may acquire,” he said.
Humeau said, Red Planet is also open to expanding in the country through franchising, similar to what it has undertaken in Thailand.
There are currently 14 Red Planet Hotels in the Philippines.
The newest addition to Red Planet’s hotels in the country, which is located in Bonifacio Global City (BGC) in Taguig City, is set to have its grand opening on May 30.
With 245 rooms, the Red Planet Hotel in BGC is the company’s biggest in the country.
Given its prime location, the company expects the Red Planet Hotel in BGC to have the biggest contribution to its revenues this year.
Humeau said the company expects to see 20 percent growth in revenue this year.
“(The) Department of Tourism is working well to bring more tourists,” he said.
Around 75 to 80 percent of Red Planet’s guests in the Philippines are domestic tourists, while many of its foreign guests are Japanese, American, Korean and Chinese.