Red Planet allots $72M for 6 more Tune Hotels in PH

Posted at 06/25/14 7:32 AM

MANILA - Hotel operator Red Planet Hotels Limited plans to spend as much as $72 million for the development of six new Tune Hotels in the Philippines as part of its expansion plan in the country.

Ken Kerr, Red Planet Hotels founder and senior vice president for acquisitions, told reporters yesterday during the opening of the Tune Hotel in Aseana City in Parañaque the company intends to develop six more Tune Hotels in the country.

“Each project would have an investment of between $10 to $12 million,” he said.

The new hotels would be located in Ermita and Binondo in Manila, Cubao in Quezon City, Fort Bonifacio in Taguig City, Alabang in Muntinlupa City and Sta.Rosa in Laguna.

Kerr said three to four of the new hotels are expected to be completed by late 2016, while the rest would be operational by early 2017.

He said the opening of the six hotels is expected to add 1,000 to 1,100 rooms to the expected total of 1,720 this year.

The company has, so far, invested about $120 million for its 10 hotels in the country.

Aside from the newly-opened 200-room hotel in Aseana City and the 189-room Tune Hotel in Ayala Ave. in Makati which would be operational by November, there are Tune Hotels located in Angeles City in Pampanga, Ermita in Manila, Makati, Cebu, Davao, Cagayan de Oro, Ortigas and Quezon City.

Red Planet Hotels country head Sahlee Zaldivia said the company’s 10 hotels here would allow it to take advantage of the expected growth in tourist arrivals this year.

“We are fully committed to expand, and grow with the international and domestic travel industries in the Philippines,” she said.

While the new hotels to be put up are mostly in Metro Manila, Kerr said the company is also interested in having provincial sites.

“We will start to aggressively explore provincial markets by early next year,” he said noting that the firm is interested in locations where high occupancy rates are expected.

Tune Hotels, which was established in 2007 in Malaysia, is a part of the lifestyle business conglomerate Tune Group founded by Tan Sri Tony Fernandes and Dato Kamarudin Meranun.

Red Planet Hotels currently has an ownership interest in 36 Tune Hotels either in operation or under development.