Islands Group’s goal: 300 rooms, hotels in 10 areas

After opening two Islands Stay Hotels in Cebu and seeing the acceptance of travelers based on high occupancy rates, the Islands Group of Companies plans to set up 10 more hotels in Cebu and reach its 300-room target in the next couple of years.

Jay Aldeguer, the firm’s chief executive officer, said that the newly-opened hotel, which had been positioned as a value-chic hotel, had been enjoying a high occupancy rate made up mostly of walk-in clients.

“Since we soft opened and had our dry-run period we have been enjoying 85 percent occupancy, conservatively, and about more than half of that are from walk-in guests. We were pleased to see a high occupancy rate and we are confident of our value proposition,” Aldeguer said.

Aldeguer cited the increasing number of “flash packers” or those travelers who didn’t plan their trips ahead of time would help “value” hotels like Islands Stay Hotel.

“These are the kind of travelers who are independent-minded, value-oriented, and resourceful who have more disposable income compared to the “back packers,” Aldeguer said.

Aldeguer also said that value-chic hotels like his firm’s hotel would help create a feel for travelers of being safe when staying at smaller hotels through the “Islands” brand of service as compared to the full service branded hotels, which would also create a brand for Cebu.

He cited China, India and the US which saw also an increasing trend for “value hotels” because of the increasing trend of “flash packers.”

“In China, 88 percent of their hotels are value hotels, India has 18,000 new rooms under this category while 25 percent of hotels in the United States are actually value hotels. This being the trend now in these countries, we can also say that it will become a trend here as well,” he said.

The Islands Group is also considering opening branches in Palawan, Baguio, Bohol, Manila, Davao and Boracay.

“We feel however that our concept will work anywhere so we are open for opportunities in other areas as well,” Aldeguer said.

Islands Stay Hotels recently opened in Archbishop Reyes Avenue across Ayala Center Cebu with an initial 15 rooms and in M.L. Quezon road in Mactan across Marina Mall with 30 rooms.

The Islands Group will also add more rooms to these two hotels within the year.

“We will have 32 rooms in our uptown branch near Ayala and 60 rooms in Mactan before November this year,” he said.