Islands Group to open hotel brand franchises by 2012

CEBU, Philippines - While the Philippines is now gaining ground as one of the preferred investment destinations for international investors, especially in hotel investment opportunities, a local tourism capitalist is fast tracking expansion plans next year to open up more hotel rooms across the country.

Islands Group, through its accommodation arm Islands Stay Hotels, is hoping to open at least 15 franchises of Islands Stay Hotel in different parts of the Philippines by early 2012.

Islands Group president and chief executive officer (CEO) Jay P. Aldeguer said the company is currently negotiating with interested franchisees in the areas of Manila (Malate area), Palawan, Iloilo, Boracay, Dipolog, Butuan, and some parts in Metro Cebu.

According to Aldeguer, before the international hotel brands and foreign-funded hotel investors could start their strong interest in taking advantage of the country’s dynamic tourism business, the Cebu-based hotel brand—Islands Stay Hotel is going to maximize this “golden” opportunity.

He said there is no better way in fast tracking this expansion plan, than offering it to franchise concept.

Islands Stay Hotels, unique concept of providing cheaper alternative for room accommodation has successfully hit the tourists market, both local and foreign travelers, he said.

The company started its first hotel facility in Cebu located at Archbishop Reyes Avenue, adjacent to Cebu Business District (formerly Cebu Business Park), with 18 rooms, immediately followed by its 42-room hotel in Mactan, near the Mactan International Airport.

Next year, Aldeguer said through its franchise offer, the hotel brand is expected to add more room in different tourism locations in the Philippines. This is to augment the shortage of affordable, yet quality room facilities and services to accommodate the country’s growing tourist arrivals.

By second quarter of 2012, the firm is going to open third company-owned and operated Islands Stay Hotel in Magallanes Street in the downtown part of Cebu. This will provide about 40 to 50 rooms, with a retail and souvenir shop in the ground floor that will be called “Sinulog Square”.

The first one-stop-shop facility for tourists, “Sinulog Square” will provide all the products and services usually required by tourists, such as ticketing office, travel packages, souvenir items, tour guide services, among others.

Aldeguer targets to open up at least 300 value-chic, no-frills accommodations within Metro Cebu, as well as other parts of the country.

Considered as the country’s first value-chic hotel chain--Islands Stay Hotel 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.

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.

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.

The Islands Group operates several subsidiaries, such as the Islands Banca Cruises; retail chain Islands and More, Islands Shuttle Services, the Talima Adventure Park, among others. (FREEMAN)