Red Planet Hotels targets 20% revenue growth

By Justine Irish D. Tabile, Reporter

RED PLANET HOTELS is expecting revenue growth of 20% this year, driven by the opening of a new site in Taguig.

“In terms of revenue, we are expecting double-digit growth. We already started that way, and we expect a lot from this (Taguig) hotel. This hotel will be the number one in revenue for sure,” according to Florent Humeau, chief executive officer of Red Planet Hotels, in a roundtable discussion on Monday.

“I think (the revenue) will be 20% higher than last year, or maybe more. (The Department of Tourism) is working to bring more tourism, and I think what makes us also optimistic is that we saw a surge in demand in business last year,” Mr. Humeau added.

He said that revenue in the first four months of the year is already 20% ahead of the year-earlier pace.

“Usually, the best time for our hotel is in October, November, and December, as there is very high demand … So there is no reason for (revenue) to start going down,” he added.

He said that the company was already back at its 2019 occupancy levels as of this year.

“We’re back to what we used to do in 2019 in terms of occupancy… Some properties have already surpassed pre-pandemic sales, while others are in line,” he added.

He said that Metro Manila sites in general have recovered faster than Red Planet hotels outside Metro Manila.

“All the hotels were doing quite well. But the rate of flights has increased quite noticeably in the last few months and is somehow impacting destination hotels (or hotels in Cebu, Cagayan de Oro, and Davao),” Mr. Humeau said.

Set to fully operate this month, Red Planet Bonifacio Global City The Fort marks the company’s 14th branch in the Philippines. It will offer 245 rooms, the company’s biggest hotel in the country.

“There is no other budget hotel (in BGC) yet, so being the first one and the most affordable hotel within BGC, it definitely makes a good opportunity for Red Planet,” Mr. Humeau said.

To date, the company manages 14 properties in the Philippines, ten of which are in Metro Manila, with the others in Clark/Angeles City, Cebu, Cagayan de Oro, and Davao.

Asked about expansion plans, he said that the company is looking to acquire and manage four hotels in the next five years.

“We are looking more outside of Metro Manila. We already have 10 hotels in Manila, so we cover pretty much the whole Metro already. So, yes. We are looking more outside Manila,” he said.

Among the areas that the company is looking for expansion are Iloilo, Bacolod, and General Santos, which are being marketed heavily by the Tourism department.