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Renovation required

Melbourne, Australia
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Renovation required

it is great to see new hotels gradually popping up in Manila and elswhere.

Some such as Microtel Mall of Asia are decidely low key, but others such as Fairmont Makati will presumably have a high profile when they open in 2011 or beyond.

So that's all well and good.

Despite a predicted economic growth rate of six to dseven per cent this year, however, it does not seem to me that there is a lot of renovation of older hotels.

Mandarin Oriental is one at which I have stayed that needs some serious work to bring it to 21st century standard. So does New World Hotel opposite Greenbelt in Makati, but perhaps not as urgently.

Makati Shangri-la, while a leading hotel on TA, appears to require renovation of its rooms according to some TA members, as does one wing of the Manila Peninsula.

Of course there are exceptions: I gather The Manila Hotel is having some internal work undertaken.

Are some of these hotel owners making a business decision that refurbishment does not give them an acceptable rate of return on the capital spending involved, or are such owners faced with more pressing demands for their capiital in other countries?

If even five per cent economic growth can continue (and that remains to be seen), the country's economy will double in roughly 15 years so Manila, Cebu and other areas will presumably need more hotels or other guest accommodation particularly if the call centre/ business process outsourcing industry continues on its merry way.

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1. Re: Renovation required

Are some of these hotel owners making a business decision that refurbishment does not give them an acceptable rate of return on the capital spending involved,

-----------------------------------------------------------

In pre Spanish times, when the parents died, the home was burned. So no point maintaining accommodation you are going to burn.

In my opinion, that has become ingrained in Filipino culture to the point where buildings that no one has any intention of burning today, will not get maintained.

.

Regards: Jim Sibbick

Luzon, Philippines
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for Philippines, Bandar Seri Begawan
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2. Re: Renovation required

The Manila Hotel just finished renovating practically the whole property. Me and my family stayed there a number of weeks ago and was very impressed with what we experienced as compared to our stay a decade ago. Too bad I can't review here in TA it as we got complimentary tickets from the hotel.

Paranaque...
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3. Re: Renovation required

The Manila Hotel is not yet finished with their renovations. The rooms in the Tower wing have been completed, however the ones in the low-rise building are refurbished, but are still scheduled for a full renovation. Cafe Ilang-Ilang and the pool area are complete plus a gym and spa have been added to the property. The Fiesta Pavilion, Maynila Ballroom, Centennial Hall, large tent, Champagne Room and other function rooms will be next. So far, what I've seen is impressive. The plans I've been shown/told about are exciting, but I'm not at liberty to divulge them at this point. Overall, I'm happy that this Manila landmark is getting back on track.

I'll be checking out the Makati Shangri-La, New World, Intercon and Dusit in the coming weeks. Will give an update of what I see.

Luzon, Philippines
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4. Re: Renovation required

Thanks for the clarification vanilla_bean. I got the impression that they were finished because didn't see and hear construction work. Stayed at Makati Shangri-la over Christmas, at least the 2 deluxe rooms we stayed at will not need renovation for the next year or two.

Paranaque...
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5. Re: Renovation required

I forgot part of my reply...

"Are some of these hotel owners making a business decision that refurbishment does not give them an acceptable rate of return on the capital spending involved, or are such owners faced with more pressing demands for their capital in other countries?"

Not sure how it works in other countries, but here, most of the brand name hotels are owned by a local company and just managed by an international chain. For example, the Marriott Manila is owned by the Megaworld group, Shangri-La is owned by Kuok group, Intercon is by Ayala, etc. Renovations are shouldered by the local owner and are, in most cases, mandatory in order to comply with the brand's international standards. Brand changes happen usually when an owner can't keep up with a brand's standards. Having said that, I don't understand why the Mandarin Oriental can still carry the Oriental brand, given the state that the property is in.

Manila, Philippines
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6. Re: Renovation required

When it comes to world class hotels and big hotel chains, Metro Manila is lagging very far behind when compared to cities like Bangkok.

The only prominent hotels in Metro Manila are the 2 Shangrila's, Hyatt and the new Marriott. The Sofitel, Peninsula and Intercontinental are not at par with their counterparts in other countries.

I just stayed at the Marriott and although the lobby is not grand, the rooms are very nice and very modern. The biggest downside is the very expensive internet connection which costs P800 a day.

Melbourne, Australia
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7. Re: Renovation required

Any idea when the Fairmont Makati opens. Is it the same as Raffles? Its in a great location and if the price is right I would be interested in staying there next year.

Tommo

Melbourne, Australia
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8. Re: Renovation required

Tommo, I believe it may be late 2011.

From the photos on www.skyscrapercity.com, it looks fairly well advanced extrenally but as we know from the example of the Radission Blu Hotel, Cebu City about which one would have said the same 18 months ago but which did not open until about September 2010, internal fitout or rectification of the building structurally if (heaven forbid) faults are discovered late in the process can take a while to say the least.

My best guess is that none of us will be staying there in 2011 as it won't be finished, but I would be delighted to be proven incorrect as Manila/ Makati needs more high end hotels with the amount of growth in the economy.

Edited: 28 December 2010, 06:46
Melbourne, Australia
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9. Re: Renovation required

Thats a shame I was hoping to pick some some 'opening promo' deals late next year.

Tommo

mlasser23
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10. Re: Renovation required

A couple of observations on some comments made. First, the Marriott might be one of the nicest Marriott hotels I have ever stayed in and the internet is expensive. But the biggest negative is paper thin walls and doors that make it so hard to sleep from all the noise; simple unacceptable for a brand new hotel. Second, I have stayed at the Peninsula many times and all the rooms have been renovated and are very nice. It might not be on par as some other Peninsula hotels, but it is very very close, the price point is much lower than those. For example, I am can a large suite, with breakfast and 1 way mercedes transfer for 11,000 pesos per night. The same room in Hong Kong Kong might cost 50,000 pesos, so it is a much better value. Also, I find the Peninsula much nicer than the Makati Shangri La, whose rooms need a renovation (but I will say service is better there).