WORLDWIDE hospitality group Accor will be expanding its network in the Philippines, bringing it to 23 hotels by 2025.
In an interview via e-mail with Gaynor Reid, Vice President Communications for Asia Pacific at AccorHotels, she said, “We also have 15 hotels in the pipeline, which will bring our network to 23 hotels in the Philippines—all set to open by 2025.”
Accor currently manages eight hotels for various local investors such as Raffles Makati, Fairmont Makati, Movenpick Mactan Island in Cebu, Movenpick Resort and Spa in Boracay, Novotel Manila Araneta in Cubao, Quezon City, Mercure Manila Ortigas, and Joy Nostalg Manila also in the Ortigas business district.
“We expect to open the MGallery Admiral Suites Hotel (Manila), Novotel Cebu Mactan Resort, and Novotel Manila @Aqua in 2020, Ibis Styles Manila Araneta, and Ibis Styles Manila Malate in 2021, and others before 2025,” she told the BusinessMirror.
Reid said, with the rising number of tourists in the Philippines, Accor’s hotels have seen higher profits, encouraged the hospitality group to further expand its network in the country.
“The Philippines has been a country where traditionally opening hotels has been slower than in some parts of Asia. In the past few years, tourism has grown significantly and RevPAR [revenue per available room] is up by 15.8 percent for our hotels in the past 12 months to October 2019, so there is growing demand for quality hotel infrastructure and investment,” she noted.
In 2019, inbound tourists in the Philippines increased by some 15.4 percent to 8.26 million from the 7.16 million in full-year 2018. The Department of Tourism is targeting an increase in foreign tourists to 9.2 million in 2020.
“We also believe the Philippines has a lot of potential as a tourism destination because it has incredible natural attractions, beautiful islands and beaches, great food culture, and Unesco heritage sites,” said Reid. “The Filipinos are also incredibly friendly and welcoming, so we believe there is great growth to come for this sector and that it will create some strong economic opportunities,” she added.
Aside from those already mentioned, the Accor Group is also looking to bring in other brands such as Pullman Living, Swissotel, Banyan Tree and Angsana, “so the country will have a diverse cross section of our portfolio for every type of traveler,” she said.
In an earlier interview with this paper, Bases Conversion and Development Authority (BCDA) president and CEO Vivencio B. Dizon said the first phase of development of New Clark City in Tarlac will include the opening of “Angsana Hotel. But Banyan Tree is building villas for long-term lease. This is all part of the first phase until 2022.” (See “Clark catches MICE ‘fever’,” in the BusinessMirror, November 17, 2019.)
Interviewed shortly after Accor took over management of Sofitel Philippine Plaza, Michael Issenberg—now chairman and CEO of Accor Asia Pacific, which oversees the Philippines operations—disclosed some difficulties with an earlier partner as the hospitality tried to get a foothold in the country as early as 1998.
The firm returned in 2002 through Century Suites, a budget hotel in Quezon City, now closed. But Accor made heads turn when it started managing the newly renovated Philippine Plaza, owned by Philippine Plaza Holdings Inc., in 2006.
“While we definitely believe there is an opportunity in the economy sector, we felt that it was important to reenter the market with a flagship property that made a statement,” said Issenberg then.
Issenberg and other Accor officials met with DOT Secretary Bernadette Romulo Puyat last December, informing her about the group’s expansion plans.
Image credits: DOT