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Red Planet Hotels bets big on Philippine tourism boom with P2 billion expansion

Red Planet Hotels is scaling up its footprint in the Philippines with plans to invest P2 billion to build or acquire four new hotels over the next five years.

This aggressive expansion aims to capitalize on the country’s resurgent tourism sector.

Red Planet CEO Florent Humeau said the expansion strategy includes acquisitions and management contracts, patterned after the company’s successful model in Thailand. Each new hotel is estimated 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, noting plans to tap new potential destinations like Iloilo, Cebu, Davao and Cagayan de Oro.

Red Planet’s expansion aligns with the Philippines’ tourism revival, fueled by a robust domestic market and the Department of Tourism’s renewed focus on attracting international visitors.

Currently, domestic tourists comprise 75-80 percent of Red Planet’s Philippine clientele, with international guests primarily hailing from Japan, Korea, China and the US.

The company’s newest hotel, a 245-room property strategically located in Bonifacio Global City, Taguig, is scheduled 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.

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