ESPLANADE APARTMENT HOTEL
Brief Project Description:
The proponent invites interested parties to invest in the development of a mid to upper-mid tier serviced apartment hotel that seeks to meet the long-stay needs of visitors to Iloilo.
Proponent: Ms. Narzalina Z. Lim & Mr. Ludiwg G. Reider
Proposed Site: Iloilo City
Scale and Content:
Situated in some 3,500-square meter site, the project comprises a serviced apartment hotel targeting the mid to upper-mid segment of the long-stay accommodation market in the Iloilo. The apartment hotel will overlook the Iloilo River Esplanade and will include the following:
- 50 apartments in mix of studio and one-bedroom apartments;
- A restaurant and bar area opening out onto the Iloilo River Esplanade;
- A business center;
- Esplanade and roof deck event areas; and
- Parking for 55 cars.
The serviced apartment hotel will appeal to X and Y generation professionals seeking a landmark “Design Hotel” serviced-apartment hotel accommodation concept offering great design, comfort, connectivity, amenity, and value.
Total Project Cost: Php 242,000,000.00
For Investment: Php 242,000,000.00
Payback Period: 6.5 years
Preferred modality: Open Investment
Iloilo City is a fast emerging growth hub for higher education and is a regional center for national government agencies, business process outsourcing, agri-processing, trading, manufacturing and tourism. It is energy self-sufficient with further major expansion of energy, water, road, and irrigation projects in the pipeline. Its modern international-rated airport connects it to Singapore and Hong Kong (soon to Korea and China) and to Manila, Cebu, Davao, Gen. Santos, Tacloban, and Puerto Princesa within the Philippines. While the mid to upper-mid hotel market is expanding rapidly, the long stay accommodation market is not currently served by purpose-build facilities as found in other cities such as Metro Manila and Cebu.
As of January 2014, Iloilo had over 63 hotel establishments with around 3,000 rooms serving the accommodation needs of the market. In 2013, it is estimated that the average room occupancy of these hotels was around 65% and upwards of 70% for the higher quality establishments and revenue per available room (RevPAR) at round Php 2,500. Long-stay guests (i.e. guests staying more than 7 nights) are estimated to account for 9% of total room night demand.
The demand for long-stay serviced apartment facilities is supported by senior managers, professionals, and tourists connected with:
- Major long-term infrastructure projects;
- An expanding business process outsourcing sector;
- 13 Universities, Colleges and academic institutions;
- Overseas Ilonggos visiting friends and relatives; and
- Other long stay tourists.
Iloilo hosts several APEC events this 2015 and a new convention center to position Iloilo as a major Meetings, Incentives, Conventions and Events (MICE) Center in the Philippines is already nearing completion.
Total accommodation capacity is expected to increase to over 3,500 rooms by 2016 with the
completion of the 150-room Richmonde Hotel, the 100-room Grand Imperial Hotel, and the 236-unit Uptown Condotel and Injap Condotel, as well as plans for the development of a 300-room Courtyard Hotel by Marriott. However, apart from the Uptown Condotel, the mid to upper-mid tier of the long-stay market, estimated to comprise 50% of total long-stay demand, remains unserved.
The following support mechanism may be available: (i) Board of Investment (BOI) Incentives including duty-free importation of equipment, tax holidays and other non-fiscal incentives; (ii) facilitation of business licenses and permits as well as fiscal incentives from the Iloilo City Government; and (iii) inclusion in national and regional marketing activities of the Department of Tourism.