Hotel occupancy rates plunge to all-time low

The postponement of the 12th ASEAN Summit has bring about all-time-low occupancy rates of large hotels and resorts in Cebu, pushing them to offer attractive packages for local residents.

Shangri-La's Mactan Island Resort, reported an average of 17 percent occupancy rate within the entire week from December 11 to 14, said the resort's communication direct Sharon Samarista.

In order to cope with the low occupancy performance, the deluxe resort, which is supposedly closed for the ASEAN Leader's Meeting, is offering as low as P6,500 per night, for local families, providing several perks to guests. The resort immediately introduced this Pre-Christmas package after the announcement of the postponement of ASEAN Summit to January next year.

Shangri-La's Mactan Island Resort has a total of 547 rooms. These rooms were booked for the ASEAN Summit meeting, which is also supposedly the venue for top leaders' meeting.

Waterfront Cebu City Hotel and Casino, also reported a 12 percent average occupancy rate with the same period, the hotel is also badly affected by the postponement of the Summit.

The Marco Polo Plaza Cebu reported an average of 20 percent occupancy rate within the entire week, said Carlo Borromeo, the hotel's public relations manager.

Newly opened Marco Polo Plaza Cebu is supposedly the host of the entire Chinese delegation, and some participants from Australia and New Zealand. The hotel registered an average of 20 percent occupancy rate within the week.

All of its over 300 rooms were booked for the ASEAN Summit delegates. The postponement of the Summit has brought the lowest occupancy rate of the hotel since it opened in April this year.

According to Borromeo, the hotel's counter shield to attract guests is to offer lowest-room-rate package for as low as P2,800 a night, for the local residents.

He said what's good with the postponement, is the local residents could benefit from the hotels, which are now offering hard-to-resist room rates.

Borromeo said what worries the hotel right now, is the bookings it reserved for the Sinulog 2007 celebration. January month, is considered as the highest season for hotel because of Sinulog.

Although, the hotel had received 50 percent payment for the ASEAN Summit bookings, he said hotels will have a hard time on January if the ASEAN Summit pushes through.

On the other hand, Cebu City Marriott Hotel, was able to manage a good occupancy rate shape, despite the postponement with an average of 55 percent to 60 percent occupancy rate within the week.

Cebu City Marriott Hotel general manager Karl Ashley Hudson said business bookings have saved the hotel from registering low occupancy rate.

"Businessmen were coming to Cebu, especially from Thursday to Sunday [December 14-17]," Hudson said.

The 12th ASEAN Summit which supposedly opened on December 10 to 14, was postponed to January next year, apparently due to the typhoon Seniang.