Value hotel chain announces franchise offering
Cebu-based Islands Stay Hotel brand has announced plans to expand to other Philippine island’s through franchise offerings. The decision comes after the two Cebu properties registered very good occupancy rates following soft openings. The Islands Group’s Chief Executive Officer Jay Aldeguer told local media; “We’re very pleased with the reception of Islands Stay, with an average occupancy rate of 85% during its dry run stage, in addition to a walk-in rate well beyond that of industry standards.” The success is attributed to the booming tourism sector in Cebu and the ability of Islands Stay Hotels to deliver “value-orientated” services to independent travellers. Aldeguer also referred to wider industry trends to support the move, saying the value hotel concept was growing globally, especially in China where 80% of projects are value offerings. Islands Stay’s first two hotels, located on Archbishop Reyes St and the Marina Mall intersection in Mactan, soft-opened respectively in March and May earlier this year. Aldeguer describes the brand as a “value-chic hotel chain” which satisfy a gap in the market between budget hostels and full-service hotels. The Group has plans to expand operations to various tourism destinations in the country like Baguio, Bohol and Palawan through franchise or company-owned operations. There is interest from foreign investors too. According to the CEO, the company is in talks with a couple of investors who also wish to bring the brand to China and India. Of course, there is still room for growth closer to home. Islands Stay Hotels currently has an inventory of 90 guestrooms in Cebu and it intends to raise this figure to 300 over the next two years.
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