SM targets tourism

After meeting success in building SM malls around the country and acquisitions in the banking industry, SM Investments Corp. was targeting tourism. SMIC announced its plans to open the P2.6 billion Rasisson Hotel Cebu on December 1, 2009.

The five-star hotel has 400 rooms and is close to the SM mall Cebu in Visayas. The area is 20 kilometres away from Mactan airport and is also close to the business district. The hotel has a ballroom measuring 1000 sqm and includes 20 conference rooms, a fitness centre with spa, a 24-hour restaurant, and a lounge area.

Carlson Hotels Worldwide-Asia would be managing the Radissons Hotel Cebu. The hotel group would be handling two of SMIC’s other hotels in Metro Manila – the Radisson Manila Bay and Regent Manila Bay. Together, the hotels are worth P2.4 billion and planned to start operations in 2010.

SMIC also invested for the building of 14 more affordable or ‘businessman’ hotels which include 50-150 rooms. The construction would be carried out in five years time and would also be located close to SM malls.

SM Hotels Senior Vice President Merril Yu said that the company was excited for the potential in the tourism sector.

SMIC has over 100 malls nationwide. It also expanded in the banking industry with Banco de Oro. The company was at that time focusing on the development of its projects related to tourism.

SMIC is considered to be the best player for these ventures due to its land properties, cashflow, and capital base.