Anything Pinoy

Foreign investors’ interest in the local tourism sector is back as investors position themselves in the robust tourism industry even as investments in other sectors remain sluggish.

The latest entrant is the Best Western International (BWI), the world’s largest hotel chain whose global brand Best Western Hotel is being marketed in the country for hotel investors and owners.

“We are very optimistic about the outlook for tourism in the Philippines and Best Western has the products and support to optimize the opportunities,” said Glenn de Souza, BWI vice-president for operations Asia.

Souza said the BWI plans to accredit 15 hotels by 2012 making the country’s largest chain of hotels.

Cyndy Tan-Jabarata, president of Tajara Leisure & Hospitality, the local partner for the marketing and development – Area Development Office (ADO) of BWI, said they would be responsible in the finding for investors for Best Western Hotel.

Jabarata explained that BWI and Tajara will not invest in the construction and building of the hotel. Instead, they would accept applications or membership of hotels that BWI is going to manage and operate for a fee.

Jabarata said that the envisioned 15 hotels would be a combination of ground-up (entirely new hotels) and retrofit hotels (rebranded hotels).

Under the scheme, BWI will accredit hotels that meet their standards, operate and manage these hotels as their own. These hotels would have an average capacity of 150 rooms and are considered 4 to 4.5 star hotels. BWI also manages and operates over 700-room hotels.

An applicant for the BWI brand would have to pass the standards of the global BWI hotels and the membership fee would depend on the number of rooms and category. On the average, the one-time joining fee is ,000 for a 100-room hotel.

Jabarata said that of the 15 hotels, two are already operating in Manila (Best Western Hotel La Corona) and in Makati (Best Western Astor) while three other properties are still under construction in Boracay, Cebu and Manila.

The ten other hotels would be located in Quezon City, Mandaluyong, Mactan, Davao, Baguio, Tagaytay, Clark, Subic, Palawan and Bohol. By 2012, BWI would be the largest hotel chain in the country.

“By 2012, Best Western is projected to become the largest international hotel chain in the Philippines. The present economic climate provides an excellent opportunity for developing hotels because the market is strong and not overcrowded,” Jarabata said.

Jabarata revealed that there have been a number of applications of local hotels that are lining up for membership with Best Western Hotel.

“We have approved five properties but we also turned down 6 applciants already,” Jarabata said noting that aside from working on providing quality service to their clients they are also looking at the sustainability of business.

Jabarata explained that there is the missing link in the hotel business and that is the security that it can provide to the capital infused by the investor.

“The Best Western brand provides that security and sustainability of your investment,” Jarabata said.

Jabarata explained that Best Western’s strength is in its specialization in high standard but affordable hotels that generate faster returns on investment for owners. The Best Western brand is world-renowned for comfortable accommodation in key destinations and great value for money. Best Western Premier hotels and resorts are specially tailored to provide superior level of service and accommodation.

Souza also noted that return on investments is faster between 5 to 8 years.

Souza also that the global economic recession offers an opportunity for them to expand their markets in Asia and the Philippines is definitely its top priority in the next five years.

Souza cited the country’s hotel occupancy rate of 74 percent on the average noting that their occupancy rate is down by 15 percent as they average only 65 percent following the recession.

“This is the right time for us to enter in the Philippine market. The opportunities for us as a brand is strong,” Souza noting that they only decided to come in this time because they feel that the Philippine economy is already stable.

He expects their guests in the Philippines to be composed of 60 percent corporate clients and 40 percent tourists.

He said that while the Philippine economy has lagged behind other countries in the region, it is still in the top three number three tourist destination in ASEAN.

“The Philippines has been there for a long time, it has always been an attraction only that other countries have caught up with it,” he said. He added that while they have established ahead in other countries, the Philippines has its own charms to offer to their guests.

He urged the private sector and the government and the tourism sector to be more aggressive stressing that the “Philippines has taken its growth for granted.”

“Twenty five years ago everybody was talking about the Philippine but now nobody talks about the Philippines, but it is not yet too late because the hotel industry goes a cycle of five years. We just need the right infrastructure so the government should take a very hard look because the tourism industry brings in a lot of foreign exchange and job alternatives to people here and abroad,” he said.

Globally, BWI has over 4,000 hotels in 80 coutnries with over 400,000 guests a night. An industry pioneer, BWI has grown into an iconic brand with diverse property portfolio.

Its greatest strength stems from a business mdoel designed to give owners maximum flexibility to address market-specific needs.

In Asia, it has a total of 151 hotels accounting for 17 percent of the market. The company aims to build about 200 hotels by 2010.(