Robinsons Land ventures into budget hotel business
Written by Writer on Sunday, October 19th, 2008
Robinsons Land ventures into budget hotel business
Monday, October 20, 2008
The Manila Times
AFTER budget airfares, the Gokongwei group is now offering budget hotels.
In a statement, Robinsons Land Corp. (RLC) said it is venturing into the affordable hotels business, with its Go Hotel, which will target businessmen and backpackers.
The property arm of JG Summit Holdings said the hotels will be located within its mixed-use developments and beside some of its 23 malls nationwide or within an RLC office building.
Some of these hotels may be stand-alone buildings, depending on demand, the property firm said.
Go Hotels will tie up with sister company, Cebu Pacific Air, as RLC plans to build the hotels where the airline operates. This would “create synergy” between the two businesses of the Gokongweis by offering affordable packages to clients, RLC said.
The property arm of the Gokongwei group and a Korean firm recently signed a deal to market a condominium project in Fort Bonifacio Global City to Korean investors in their home country and in the Philippines.
Under the memorandum of agreement, Daemyung Consulting and Realty Corp., a licensed real-estate brokerage firm in both countries, will reserve the whole Tower 3 of the Trion Towers, which it will then exclusively offer to Korean investors and end-users.
The 49-story third tower of the RLC project has 720 units that will house one-, two- and three-bedroom units. Deamyung will set the selling prices, Maribel de la Torre, RLC marketing and communications representative, said. Construction will start two years from now and will be turned over after five years to owners.
The first two towers, which are being sold to Filipinos, also have the same configuration, with selling prices ranging from P3.5 million for the 32- to 36-square meter single bedroom units to at least P7 million for the 100- to 150-square meter three-bedroom units.
According to Raoul Littaua, RLC senior vice president for sales and marketing, the tie-up will allow the company to tap into prospects outside the country and take advantage of the growing number of Korean tourists. The Philippines is a favorite destination for Korean students who want to learn English, honeymooners and retirees alike.
Doo Hee Lee, Daemyung president, said Trion Towers will appeal to its target market since Fort Bonifacio is a prime location, especially since the Korean Embassy is located in the adjacent McKinley Hill development. Lee said investors, who would buy entire floors of the condominium and rent out units to Korean tourists and transient families, will find it cheaper to buy real estate in the Philippines than in their home country where prices for prime properties can reach up to P700,000 per square meter.
Returns for investors are also higher since taxes are lower in the Philippines while rental income at 10 percent is almost double that of Korea, the Daemyung executive said. Rental income, combined with periodic price increases, can easily give buyers at least 17- percent yield from their investments, which is difficult to replicate in Korea.
Lee said the financial turmoil is a boon to business in the Philippines since liquid Korean investors who are now having a hard time finding good places to place their money will see the country as a safer bet.
After Trion Towers, RLC executives said Daemyung is open to marketing Amisa, the company’s leisure development in Mactan. — Likha Cuevas-Miel
