Microtel slashes room rates

CEBU, Philippines - As the current outbreak of influenza A (H1N1) starts to take its toll on tourist arrivals in Cebu, resort chain Microtel Grand Resorts in Mactan decided to slash down room rates to boost business from the domestic market.

 Newly appointed general manager Dean Ynalvez Cid announced that the resort is moving up ways to increase its occupancy from the domestic market, now that there is a slight decline of foreign visitors.

The 161-room Microtel Grand Resorts is implementing 60 percent reduction of its room rates for the local market, providing opportunity for local residents to enjoy the new resort’s accommodation.

“We’d like to have more of domestic market,” said Cid in a press conference held at the resort recently.

In the first quarter of this year, Microtel Grand Resort, the largest resort facility of the Microtel chain around the world, registered 80 percent occupancy rate, which Cid described as good performance.

However, towards the second quarter of this year, which is also the lean season for the tourism industry occupancy rate of the resort plunged to an average of 50 percent, also brought about by the A H1N1 scare.

“We are now feeling the brunt of the A H1N1 outbreak,” he said adding that the reason why the resort has to come up with very attractive promotion to drum up domestic market.

Depending on the accommodation choices, an overnight stay would now cost within the average of P2,500 and P2,900 for a package with free breakfast (for two).

Although Microtel chain is known as an economy hotel brand, the Cebu facility, which is the largest Microtel in the country, is offering five-star standard service, in value or affordable rate package.

The Microtel Resort in Punta Engaño, Mactan is situated in a 5,000 square-meter property, developed by Microtel franchisee Enrison Land Inc. (ELI), a company owned by the Benedicto family of Cebu. It is the first venture of the Benedicto family into the hospitality sector.

ELI has inked deal with the Microtel Inns & Suites [Pilipinas] Inc., for a 100 percent franchise package, which means to invest in the resort facility, tapping the management expertise of Microtel group.

ELI invested about P200 million on this project. ELI president Dean Benedicto said the company is confident that it could achieve its ROI (return of investment) in the short term.

Currently, the resort’s occupancy is dominated by Korean tourists (60 percent), followed by out-of-towners, and corporate bookings specifically from Metro Manila, and Davao.

According to Cid, the resort is also expecting a rebound of foreign visitors in the next few months, as the months July-August and September are the honeymoon months for the Koreans.