Saturday, November 15, 2008 Microtel eyes GSC expansion
GENERAL SANTOS CITY -- Budget hotel chain Microtel Inns & Suites is planning to build in this city a 50-room hotel to a tune of P90 million, a senior company official said on Wednesday.
Construction is targeted to start by the first quarter of 2009.
Grace T. Magnaye, Microtel Development Corp. business development manager, said the company and Floirendo-owned Damosa Land Inc. are in talks to open a branch in this city, which would be the second in Mindanao.
Damosa holds the Microtel Inns & Suites franchise in Davao City and in this locality.
"Yes, there's a plan to build a Microtel hotel in Gensan. Out top executives and [the] Damosa [management] are in the advance stage of negotiations," Magnaye said.
The proposed Microtel site is reportedly along the national highway fronting St. Elizabeth hospital.
The building at the proposed site has been cleared of its occupants such as a convenience store, a bakeshop and a drugstore.
This locality, which in the last few years has attracted national gatherings, has been experiencing difficulties in accommodating conventions with more than 2,500 participants even with the city's home stay program.
The possible entry of Microtel is also expected to boost the tourism industry of this city as existing hotel operators welcomed the development.
"We welcome new hotel operators since it would mean additional venues where tourists can be accommodated and for the city to further attract large summits," said Romeo Bartolome, general manager of East Asia Royale Hotel.
East Asia Royale, which has 100 rooms, is the undisputed hotel choice of foreigners coming in the city.
"It's good for the city. It is showing that we are booming," Bartolome said when sought for reaction on the plans of Microtel.
He noted that a new hotel player in the locality would be good for the industry because it will make the players more competitive.
"On our part, we have loyal followers already even among the corporate world," he noted, expressing a bullish attitude with the entry of giant shopping mall operators Robinsons of the Gokongwei family and SM of the Sy family.
Robinsons has already begun construction works and SM is expected to follow suit in the near term. The latter is still negotiating the site landowner.
Bartolome said that East Asia Hotel will expand its capacity by another 60 rooms at a tune of P100 million in line with the growing urbanization of the city.
Just like East Asia Hotel, the proposed Microtel site is just along the national highway and a short distance apart from each other.
Microtel has over 300 branches worldwide. In the Philippines, it operates in Baguio, Batangas, Boracay, Cabanatuan, Cavite, Mactan and Tarlac. It will soon open branches in Palawan and at SM Mall of Asia. (BSS)
