Red Planet Hotels is significantly expanding its presence in the Philippines, planning to invest P2 billion to build or acquire four new hotels over the next five years.
This bold expansion aims to capitalize on the country’s revitalized tourism sector.
Red Planet CEO Florent Humeau stated that their strategy includes acquisitions and management contracts, modeled after the company’s successful operations in Thailand. Each new hotel is expected to require an average investment of P500 million.
“We’re planning one hotel per year. If there is a good opportunity, such as an existing building or hotel that we see high potential in, we may acquire it,” he said, highlighting plans to explore new destinations like Iloilo, Cebu, Davao, and Cagayan de Oro.
Red Planet’s expansion aligns with the resurgence of Philippine tourism, driven by a strong domestic market and the Department of Tourism’s renewed focus on attracting international visitors.
Currently, domestic tourists make up 75-80 percent of Red Planet’s clientele in the Philippines, with international guests mainly coming from Japan, Korea, China, and the US.
The company’s newest hotel, a 245-room property strategically located in Bonifacio Global City, Taguig, is set to open on May 30.
This prime location is expected to make the hotel a significant revenue driver in 2024, with Humeau projecting a 20 percent increase in Red Planet’s Philippine revenue for the year. (MILYONARYO.COM.PH)
