Radisson Hotel Group (RHG) and SM Hotels and Conventions Corp (SMHCC) have signed a franchise deal for 14 new hotels across the Philippines over the next five years, with a total of up to 2,500 keys.
The Master Development Agreement signed yesterday (Apr 27) gives SMHCC the exclusive development rights for the midscale to upper scale Park Inn by Radisson brand, which will mostly be outside of metro Manila.
SMHCC has nine existing hotels, including five from RHG-Radisson Blu in Cebu and Park Inn by Radisson in Bacolod, Davao, Iloilo, Clark and Quezon City – this represents about 48 per cent of the total room inventory.
The first of the 14 new hotels are the 516-key dual-branded hotels in Cebu City, Radisson and Park Inn by Radisson. Both are scheduled to open in 2027 as part of the SMX Convention Centre and SM Seaside Arena, currently under construction, and the existing SM Seaside City Cebu Mall.
Other locations being considered are Fairview in Quezon City and outside metro Manila, Dasmarinas in Cavite, Santa Rosa in Laguna, Cauayan in Isabela, and Laoag in Ilocos Norte, shared Peggy Angeles, executive vice president of SMHCC.
She noted there is opportunity for expansion outside metro Manila in the midscale category, fuelled mostly by the domestic market.
SM hotels are not standalone properties, located as they are near an SM City or SM Mall of which 82 are spread all over the Philippines, an SMX convention centre or SMDC residential developments.
Ramzy Fenianos, chief development officer, Asia-Pacific, RHG commented that the Philippines is still “untapped” and has a “huge potential” hence the partnership with SMHCC and the opening of an RHG business unit in the Philippines.
The franchise deal benefits both companies mutually, with SMHCC ensuring financial stability and commitment to sustainability and RHG providing the network and global resources to help SMHCC properties operate and expand faster to cities outside the metro, said Angeles.