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Carlson expedites Philippines growth

SM HOTELS AND CONVENTIONS CORPORATION SIGNS 3RD HOTEL MANANAGEMENT AGREEMENT WITH CARLSON REZIDOR Simon C. Barlow, President, Asia Pacific, Carlson Rezidor Hotel Group & Ms. Elizabeth T. Sy, President of SM Hotels and Conventions Corporation [3]

By James Wilkinson in Cebu, Philippines

Carlson Rezidor has ramped up its Philippines expansion with the signing yesterday (Oct 14) of a management agreement for a new-build, 150-room Park Inn by Radisson hotel in the city of Clark, outside Manila.

The property, located in Clark’s Freeport Zone, is expected to open in 2016 and will be the third hotel under Carlson’s brands for owners the SM Hotels and Conventions Corporation.

SM also owns the Radisson Blu Cebu Hotel, which was damaged by a 7.2-magnitide earthquake this morning (Oct 15), and is headed-up by Elizabeth T. Sy, President of the family company.

Speaking to HM after the signing at the Radisson Blu Cebu Hotel yesterday, Sy said she was “excited” to be working with Carlson on another Park Inn hotel in the Philippines.

“The signing of Park Inn by Radisson Clark reflects our vision of presenting a vibrant, International mid-scale hotel brand alongside SM Mall and SMX Convention and Exhibition Center for mutual benefit in multiple locations,” she said.

Under a development agreement, SM is partnering with Carlson on up to a further eight Park Inn by Radisson hotels across the Philippines over the next five to eight years in strategic locations.

“We are expanding our existing partnership with Carlson Rezidor as we believe that our businesses have a shared vision and strategy for growth in the Philippines,” she said.

“Park Inn by Radisson is a hotel brand that appeals to the domestic market of 35 million travelers, which is also our target clientele for SM Malls.”

There could be more hotels in the deal. SM owns 47 shopping centres in the Philippines and Sy told HM around 25% of them would be ideals to have hotels attached.

“If we feel the location has potential, we’ll do it,” Sy said.

SM is also focusing on the mid-market segment, one she said is seeing “really good growth” across the nation.

Carlson Rezidor Hotel Group’s Asia-Pacific President, Simon Barlow, said the deal “further cements Carlson Rezidor’s longstanding relationship with one of the Philippines’ largest conglomerates”.

He told HM the deal is “the first of a number of announcements that we are likely to make over the next few months for Park Inn by Radisson in the Philippines”.

“In 2011, we implemented a growth strategy based on forming strategic partnerships across select countries in Asia-Pacific that would provide multi hotel platforms,” he said.

“So far 2013 has delivered two strategic partnerships, one in India with Bestech Hospitalities and one in Indonesia with Panorama Group.

“In addition our strong relationship with partners including SM Hotels and Conventions Corporation in the Philippines, is enabling us to drive incremental growth potential of at least 100 hotels in Asia-Pacific,” he said.

Park Inn by Radisson is rapidly gaining momentum across Asia-Pacific and according to Carlson, is designed for the global Gen Y.

It is a “friendly, fresh, vibrant and uncomplicated brand, which focuses on delivering the modern essentials of a great hotel experience” Carlson says.

There are currently four Park Inn by Radisson hotels in operation in Asia-Pacific.

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