SM to Invest $270m to build 14 new Radisson hotels in the Philippines

SM Radisson

SM Hotels and Conventions Corp. (SMHCC) is set to build 14 new hotels under the Radisson brand over the next five years, with an investment of PHP15 billion ($270 million).

The move is aimed at tapping into the growth of the tourism sector and Filipino consumers’ spending.

SMHCC chair and president Elizabeth Sy, executive vice president Peggy Angeles, Radisson Hotel Group CEO Federico Gonzáles, and chief development officer for the Asia Pacific Ramzy Fenianos signed the master development agreement in Quezon City recently.

Under the deal, SMHCC will have the exclusive right to build and integrate Park Inn by the Radisson hotels with SM property developments across the country.

Angeles said the majority of the new hotels would be located outside Metro Manila, bringing economic activities to the provinces.

She cited some of the places where the new hotels would be integrated with SM property developments, including Isabela, Olongapo, Laoag, Dasmarinas, Sta. Rosa, and Fairview. By 2028, the partnership aims to have 20 Park Inn by Radisson hotels across the country.

The first Park Inn by Radisson in the country was built in 2013 in Davao City and is also the first in the Asia Pacific. The hotel brand is now present in Bacolod City, Clark, Iloilo City, and Quezon City. SMHCC and Radisson Hotel Groups are developing a 516-room dual-branded property in Cebu under the Radisson and Park Inn Radisson brands.

Angeles said that the occupancy rates of SMHCC hotels have surpassed the pre-pandemic levels. She added that 48 percent of the hotels under the SMHCC are Park Inn by Radisson brand.

With the increasing number of flights and the appetite of local and international travelers to go on trips, demand for quality accommodation would further increase, according to Angeles.

Gonzáles sees untapped potentials for Radisson Hotel Groups in the Philippines, and he believes that the country has its own beauty that is known internationally by the quality of the people, the spirit of welcoming, and the quality of service.

Meanwhile, Radisson Hotel Group Southeast Asia and Pacific area senior vice president Andre de Jong said the 14 new hotels would generate about 1,250 jobs for Filipinos, with the additional 2,500 rooms. –