Red Planet opens new BGC hotel

Red Planet Hotels, a budget hotel chain, is gearing up for a significant expansion in the Philippines over the next five years, eyeing an investment of PHP 2 billion.

The company intends to add at least four hotels to its portfolio, spending an average of P500 million per hotel. Florent Humeau, CEO of Red Planet Hotels, outlined the expansion strategy, which includes both acquiring and managing existing hotels as well as developing new projects.

"We're planning to add one hotel per year starting next year," Humeau disclosed in an interview held Monday at Red Planet BGC, the company's latest addition in the Philippines, which marks its 14th hotel in the country.

The expansion will not be limited to Metro Manila, as Red Planet Hotels plans to venture into other key cities such as Iloilo. Additionally, the company aims to establish a presence near concert venues to cater to the growing demand for affordable accommodations among concert-goers.

In a strategic move to diversify its business model, Red Planet Hotels is exploring the franchising concept, similar to its successful model in Thailand. Currently, all 14 Red Planet Hotels in the Philippines are owned by the company.

The upcoming launch of Red Planet BGC on May 30 marks a milestone for the company, being its largest hotel in the Philippines with 245 rooms. Situated in the prime business district of Taguig City, the hotel offers 98 parking slots exclusively for its clients, free of charge.

"We expect Red Planet BGC to significantly boost our revenue, given its size and higher room rates," Humeau commented. The hotel is priced at PHP 2,565 per night, making it the highest rate among Red Planet hotels in the country.

Humeau expressed optimism about the company's growth prospects in the Philippines, projecting a revenue increase of 20% or more compared to last year, driven by the ongoing recovery of the tourism sector.

Red Planet Hotels aims to solidify its position as a leading budget hotel chain in the Philippines and expand its footprint strategically across the country in the coming years.