• Domestic travels driving demand for 3-star hotels

    0

    THE increasing number of domestic travels by Filipinos is influencing the development of hotels for the middle market, a real estate analyst said.

    “The 3-star and middle-income hotel developments will still likely . . . post higher occupancy in the short- to medium-term due to the wealth effect,” Jones Lang Lasalle Philippines Head of Research, Consultancy and Valuation Claro Cordero Jr. said in a text message.

    Cordero noted the rise in spending power of Filipinos is driven by the Business Process Outsourcing (BPO) industry and remittances from overseas Filipinos.

    KMC Mag Group Managing Director Michael McCullough echoed Cordero’s sentiments, noting the expanding middle class is driving tourism.

    “. . . If you look at the two and three-star hotels, it’s mostly driven by local tourism in the country,” McCullough said in a separate phone interview. “The local market is really quite strong; they have a lot of cash. They do look for a value.”

    In an earlier interview, SM Hotel and Conventions Corporation Senior Vice President for Operations Peggy Angeles noted the role of airlines.

    “Before, it was so hard to travel. It’s easier [now]because a lot of availability of flights and fares are competitive, especially with so many low-cost airlines.

    “I think that drives the demand, not just internationally but domestically . . . So that’s driving the demand for hotels even outside of Metro Manila, because . . . particularly for 3-star, 4-star hotels . . . because not everyone would like to stay in a luxury hotel,” Angeles said.

    There is also a growing demand for hotels in emerging business districts, particularly the Bay Area. However, Hotel of Asia Inc. General Manager Lei Policarpio noted most of the accommodations are 5-star category.

    Hotel of Asia recently opened Hotel 101 Manila in the Bay Area, one of the few 3-star hotels in the vicinity.

    “People kasi when they come to the Bay area before, it’s usually for several days. It’s really for a more high-end staycation. But now, just because everyone is so busy. Everyone must be able to afford a staycation of their own,” Policarpio said.

    Domestic travels driving demand for 3-star hotels

    THE increasing number of domestic travels by Filipinos is influencing the development of hotels for the middle market, a real estate analyst said.

    “The 3-star and middle-income hotel developments will still likely . . . post higher occupancy in the short- to medium-term due to the wealth effect,” Jones Lang Lasalle Philippines Head of Research, Consultancy and Valuation Claro Cordero Jr. said in a text message.

    Cordero noted the rise in spending power of Filipinos is driven by the Business Process Outsourcing (BPO) industry and remittances from overseas Filipinos.

    KMC Mag Group Managing Director Michael McCullough echoed Cordero’s sentiments, noting the expanding middle class is driving tourism.

    “. . . If you look at the two and three-star hotels, it’s mostly driven by local tourism in the country,” McCullough said in a separate phone interview. “The local market is really quite strong; they have a lot of cash. They do look for a value.”

    In an earlier interview, SM Hotel and Conventions Corporation Senior Vice President for Operations Peggy Angeles noted the role of airlines.

    “Before, it was so hard to travel. It’s easier [now]because a lot of availability of flights and fares are competitive, especially with so many low-cost airlines.

    “I think that drives the demand, not just internationally but domestically . . . So that’s driving the demand for hotels even outside of Metro Manila, because . . . particularly for 3-star, 4-star hotels . . . because not everyone would like to stay in a luxury hotel,” Angeles said.

    There is also a growing demand for hotels in emerging business districts, particularly the Bay Area. However, Hotel of Asia Inc. General Manager Lei Policarpio noted most of the accommodations are 5-star category.

    Hotel of Asia recently opened Hotel 101 Manila in the Bay Area, one of the few 3-star hotels in the vicinity.

    “People kasi when they come to the Bay area before, it’s usually for several days. It’s really for a more high-end staycation. But now, just because everyone is so busy. Everyone must be able to afford a staycation of their own,” Policarpio said.

    Share.
    loading...
    Loading...

    Please follow our commenting guidelines.

    Comments are closed.