Islands Group opens franchise offer for hotel arm

CEBU, Philippines - In its bid to provide an affordable yet chic accommodation facility in Cebu and other major tourism destinations in the Philippines, the Islands Group has formally offered a franchise package for its hotel arm, the Islands Stay Hotels.

Islands Group president and chief executive officer (CEO) Jay Aldeguer announced in a press conference that the introduction of the unique franchise package of Islands Stay Hotel brand is expected to aid the company’s target to open up at least 300 value-chic, no-frills accommodations within Metro Cebu, as well as in other parts of the country.

Aldeguer said its first two hotels opened in the last few months, the one near the Cebu Business Park (CBP) and in Mactan Island, registered an average occupancy rate of 85 percent, which is quite high compared to the average occupancy of the industry now.

Aside from pursuing its franchise offers, and partnership deals to open up in 10 locations in Metro Cebu, Aldeguer said talks are also ongoing to penetrate other major destinations in the Philippines, such as Palawan, Baguio, Bohol, Manila and Boracay.

Although it offers a formal franchise package, Aldeguer said the company is also ready to make any adjustments along the way, if needed.

The value-chic chain is modeled after the new trend of no-frills accommodations. Islands Stay may be based on a new concept in the Philippines, but it’s already starting to become popular internationally. Such a trend pays attention to the new kind of traveler—resourceful and value-oriented.

At present, the two facilities in Cebu and Mactan attract mixed guests profile, including businessmen, salesmen, backpackers, friends, visiting relatives, young professionals, Balikbayans, and tourists.

Islands Stay concentrates on pure and simple accommodations without the unnecessary fuss that result to high room rates hidden costs.

“It’s a similar concept to low cost airlines finding that meals on the plane are one of the more practical things to do away with, in turn passing on the savings to the customers,” Aldeguer said.

Although it is positioned as affordable and value-for-money hotel, Aldeguer said the new hotel brand provides the basic necessities of a traveler, such as Internet WiFi free in every room, hot and cold, cable TV, and bar, and an iPod rental offer, among others.

Already the company has invested at least over P20 million for the establishment of two Islands Stay Hotel in Cebu, located at the Archbishop Reyes street, adjacent to the Cebu Business park, and one on Mactan Island.

“Our business model allows us to move fast,” Aldeguer said

Its room accommodation description is labeled after the Group’s mother company Islands Souvenirs Inc. (ISI) T-shirt sizes, which is small, medium, large and extra –large.

 “You see, travelers need only a room [no frills room]. They only sleep in the hotel and not usually linger, they want to explore the place most of the day. There seems to be to be a changing travel-lifestyle of people today. They are direct to the point. Even our check-in process is much faster,”said Aldeguer. (FREEMAN)