SM hospitality arm to build 14 hotels for tourists, OFWs
By Lovely Nica P. Lee
19 Nov 2007
Source: BusinessWorld
THE HOTEL Investments Group of listed holding firm SM Investments Corp. is planning to put up a hotel chain nationwide in order to tap the growing consumers in the domestic tourism market.
To be called Casa SM, the hotel will be built in 14 sites that the company has yet to be determined by the company. The hotels, which will be marketed to local tourists and overseas Filipino workers (OFWs) visiting the country, will feature a minimum of 50 rooms at an average size of 24 square meters each and will have a rate of P2,000 per night.
"We’re fine-tuning the 14 sites. Once we select the sites, we’ll finalize the [budget]," said Merril F. Yu, senior vice-president of the Hotel Investments Group. "There’s a growing demand for hotel accommodations from multiple users in second- and third-tier locations and we’re going in those areas," he added. Mr. Yu also said that the strategy was to open one Casa SM in places where the SM malls exist. There are 30 SM malls nationwide.
"As the tourist number increases, we want to develop hotels that add value to SM products," he said. "We’d like to capture synergies of an existing mall structure and build a hotel [near the mall]," he added. Mr. Yu said the group aims to open two beta sites by the end of 2009, which would serve as the springboard to the balance of the 12 other units they would be coming up.
He also noted the possibility of partnering with an international management operator for the hotels depending on how many rooms a site requires. The Hotel Investment Group is now busy completing the expansion of Taal Vista Hotel from 128 rooms to 262 rooms, Mr. Yu added.
He said the group has also jump-started the renovation and conversion of the 400-room Cebu hotel beside SM City Cebu into a five-star operation by Sofitel of the Accor Group, a European hotel management firm.
The P2.8-billion five-star hotel was designed by United States-based master planner and architect Wimberly Allison Tong and Goo. Preparations are also being made for a Radisson Hotel in the Mall of Asia Complex which will have about 400 rooms, Mr. Yu said.
The hotel will be developed and managed by Carlson Hotels Asia Pacific, and aims to be the country’s premier business and tourism district by the Manila Bay. The Hotel Investment Group is positioned as a progressive development group that will optimize multiple investment vehicles in travel and tourism, and consequently, add value to the existing businesses of SM Investments.
The group contributes 8% in the total revenues of SM Investments Corp.’s property development business. SM Investments is the Sy family’s publicly listed holding firm, which handles its real estate, retail merchandising, shopping malls, and banking businesses.
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SMIC to build hotel chain near SM malls
By Honey Madrilejos-Reyes
19 Nov 2007
Source: Business Mirror
SM Investments Corp. (SMIC), the publicly-traded holding firm led by shopping-mall mogul Henry Sy, will put up a hotel chain for businessmen to bolster its position in the country’s growing tourism industry.
In an interview, senior vice president for hotel investments group Merril F. Yu said the plan is to build the hotels near the SM shopping malls to make them more enticing to clients.
“Our plan is to test the market first by starting with two hotels. Our target is to put up a total of 14, which we hope to complete in the next two years,” he said. They will consist of 50 rooms, with an average rate of P2,000 per day. Yu said that SM Investments will likely tap an international operator to manage the hotels.
Earlier, SMIC tapped European hotel operator Accor to run its P2.8-billion hotel in Mactan, Cebu. The five-star hotel has 400 rooms and forms part of the Sofitel brand of international hotels.
It is expected to open in December 2008. Other SM hotel projects in the pipeline are two hotels in SM BayCity to include the recently announced Microtel project; a hotel in Hamilo Coast; and boutique hotels in selected sites in Luzon and the Visayas. Next year, SMIC is spending P15.6 billion to fund its property projects, including hotels.
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SM mulls boutique hotels near malls
19 Nov 2007
Source: Malaya
SM Investment Corp. plans to build a string of boutique hotels of 50 rooms each near the SM malls nationwide. For starters, the conglomerate is assessing possible sites in 14 malls.
SM is currently building a series of residential condominium buildings adjacent to its malls. Merril F. Yu, SM Investments senior vice president for hotel investments group, said the the company will break ground in two "beta sites" next year.
The two "beta sites" would be operational by end 2009, according to Yu. "This will allow to capture the synergy of two existing structures and add value to them", said Yu. Yun said SM will invest P1.7 million per room for its hotel business.
SM Investments would tap outside expertise in running the hotels, according to Yu. SM Investments earlier also used its mall as a pivot factor in developing its condominium development in two projects in Manila.
"SM Mezza" is a four tower residential project SM Developments Corp., SM Investment’s unit, is developing adjacent to the SM Sta. Mesa mall. The "Grass Residences" meanwhile is a similar three-tower development that will rise beside the SM North Edsa in Quezon City.
SM Investments meanwhile intends to spend roughly P26 billion for capital expenditures by 2008, with focus on property, tourism and mall development. SM Investments executive vice president Jose Sio said roughly P15.6 billion would be spent for property development.
About P6 billion will be set aside for mall expansion and SM’s retail and banking businesses will be budgeted P2 billion and P2.3 billion respectively. Sio said about P7 billion of the intended capex "may be funded by borrowings" with the balance to come from cash from operations.
By Lovely Nica P. Lee
19 Nov 2007
Source: BusinessWorld
THE HOTEL Investments Group of listed holding firm SM Investments Corp. is planning to put up a hotel chain nationwide in order to tap the growing consumers in the domestic tourism market.
To be called Casa SM, the hotel will be built in 14 sites that the company has yet to be determined by the company. The hotels, which will be marketed to local tourists and overseas Filipino workers (OFWs) visiting the country, will feature a minimum of 50 rooms at an average size of 24 square meters each and will have a rate of P2,000 per night.
"We’re fine-tuning the 14 sites. Once we select the sites, we’ll finalize the [budget]," said Merril F. Yu, senior vice-president of the Hotel Investments Group. "There’s a growing demand for hotel accommodations from multiple users in second- and third-tier locations and we’re going in those areas," he added. Mr. Yu also said that the strategy was to open one Casa SM in places where the SM malls exist. There are 30 SM malls nationwide.
"As the tourist number increases, we want to develop hotels that add value to SM products," he said. "We’d like to capture synergies of an existing mall structure and build a hotel [near the mall]," he added. Mr. Yu said the group aims to open two beta sites by the end of 2009, which would serve as the springboard to the balance of the 12 other units they would be coming up.
He also noted the possibility of partnering with an international management operator for the hotels depending on how many rooms a site requires. The Hotel Investment Group is now busy completing the expansion of Taal Vista Hotel from 128 rooms to 262 rooms, Mr. Yu added.
He said the group has also jump-started the renovation and conversion of the 400-room Cebu hotel beside SM City Cebu into a five-star operation by Sofitel of the Accor Group, a European hotel management firm.
The P2.8-billion five-star hotel was designed by United States-based master planner and architect Wimberly Allison Tong and Goo. Preparations are also being made for a Radisson Hotel in the Mall of Asia Complex which will have about 400 rooms, Mr. Yu said.
The hotel will be developed and managed by Carlson Hotels Asia Pacific, and aims to be the country’s premier business and tourism district by the Manila Bay. The Hotel Investment Group is positioned as a progressive development group that will optimize multiple investment vehicles in travel and tourism, and consequently, add value to the existing businesses of SM Investments.
The group contributes 8% in the total revenues of SM Investments Corp.’s property development business. SM Investments is the Sy family’s publicly listed holding firm, which handles its real estate, retail merchandising, shopping malls, and banking businesses.
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SMIC to build hotel chain near SM malls
By Honey Madrilejos-Reyes
19 Nov 2007
Source: Business Mirror
SM Investments Corp. (SMIC), the publicly-traded holding firm led by shopping-mall mogul Henry Sy, will put up a hotel chain for businessmen to bolster its position in the country’s growing tourism industry.
In an interview, senior vice president for hotel investments group Merril F. Yu said the plan is to build the hotels near the SM shopping malls to make them more enticing to clients.
“Our plan is to test the market first by starting with two hotels. Our target is to put up a total of 14, which we hope to complete in the next two years,” he said. They will consist of 50 rooms, with an average rate of P2,000 per day. Yu said that SM Investments will likely tap an international operator to manage the hotels.
Earlier, SMIC tapped European hotel operator Accor to run its P2.8-billion hotel in Mactan, Cebu. The five-star hotel has 400 rooms and forms part of the Sofitel brand of international hotels.
It is expected to open in December 2008. Other SM hotel projects in the pipeline are two hotels in SM BayCity to include the recently announced Microtel project; a hotel in Hamilo Coast; and boutique hotels in selected sites in Luzon and the Visayas. Next year, SMIC is spending P15.6 billion to fund its property projects, including hotels.
---
SM mulls boutique hotels near malls
19 Nov 2007
Source: Malaya
SM Investment Corp. plans to build a string of boutique hotels of 50 rooms each near the SM malls nationwide. For starters, the conglomerate is assessing possible sites in 14 malls.
SM is currently building a series of residential condominium buildings adjacent to its malls. Merril F. Yu, SM Investments senior vice president for hotel investments group, said the the company will break ground in two "beta sites" next year.
The two "beta sites" would be operational by end 2009, according to Yu. "This will allow to capture the synergy of two existing structures and add value to them", said Yu. Yun said SM will invest P1.7 million per room for its hotel business.
SM Investments would tap outside expertise in running the hotels, according to Yu. SM Investments earlier also used its mall as a pivot factor in developing its condominium development in two projects in Manila.
"SM Mezza" is a four tower residential project SM Developments Corp., SM Investment’s unit, is developing adjacent to the SM Sta. Mesa mall. The "Grass Residences" meanwhile is a similar three-tower development that will rise beside the SM North Edsa in Quezon City.
SM Investments meanwhile intends to spend roughly P26 billion for capital expenditures by 2008, with focus on property, tourism and mall development. SM Investments executive vice president Jose Sio said roughly P15.6 billion would be spent for property development.
About P6 billion will be set aside for mall expansion and SM’s retail and banking businesses will be budgeted P2 billion and P2.3 billion respectively. Sio said about P7 billion of the intended capex "may be funded by borrowings" with the balance to come from cash from operations.