|SM Investments Corp., the investment arm of retail tycoon Henry Sy, through its unit Hotel Investment Group, has signed an agreement with Accor of Europe to operate the conglomerate’s P2.8-billion, five-star hotel in Mactan, Cebu.
SM Investments Corp., the investment arm of retail tycoon Henry Sy, through its unit Hotel Investment Group, has signed an agreement with Accor of Europe to operate the conglomerate’s P2.8-billion, five-star hotel in Mactan, Cebu. SM Investments said in a disclosure to the stock exchange that it had signed a contract with Accor to operate its 400-room hotel, which will be branded as Sofitel.
Accor is the European leader in hotels and tourism and operates over 3,800 hotels with 450,000 rooms in 90 countries. Its hotel chains are known worldwide under the names Sofitel, Pullman, Novotel, Mercure, Suitehotel, and All Seasons, among others.
“We welcome this partnership with Accor to operate Sofitel Cebu as a major step in SM’s bid to invest in the Philippine hotel and tourism business,” said SM Hotel Investment Group senior vice president Merril Yu.
“It excites us to offer no less than a five-star facility in this region, which continues to be the one of the country’s major sources of exports and is a prime tourism destination for its many beaches, dive spots and other interesting sites.”
The hotel, which will start commercial operation by December 2008, has been designed by Wimberly Allison Tong and Goo, a global leader in design. SM Investments said funding for the project would come from internally generated cash and borrowings.
“Hotel Investment Group is positioned as a progressive development group that will optimize multiple investment vehicles in travel and tourism, and consequently, add value to the existing businesses of SM,” SM Investments said.
The group currently owns Vista Hotel in Tagaytay City, which is being expanded into a hotel with 260 rooms by November 2008 from the current 128 rooms. The P650-million expansion plan likewise add a 1,000-seater grand ballroom and six meeting rooms.
SM Investments last week signed an agreement with Microtel Inn and Suites, one of the fastest-growing franchise hotel brands in the Philippines and United States, to build a 150-room hotel inside the 60-hectare SM BayCity in Pasay. This is the first of two hotel projects being planned in SM Bay City.
SM Investments also plans to up a hotel in Hamilo Coast in Batangas and several boutique hotels in selected sites Luzon and Visayas.