Red Planet Hotel, a Japanese-owned budget hotel chain, is expanding its current 14 hotels in the Philippines on strong demand for this kind of no-frills accommodation, but tourist-friendly accommodation facilities that are centrally located in major business districts at affordable rates. 

In a press conference Friday, May 17, Red Planet Hotels CEO Florent Humeau told reporters they are planning to build at least one hotel a year in the country in the next five years with target areas in the provinces outside of Luzon. 

The current Red Planet hotels are all-company owned, but the owners are also considering of other modes of expansion such as brand franchising and management operations. 

Humeau said they are slated to open its latest 245-room hotel in Bonifacio Global City on May 30 this year.

For its expansion, Humeau said they are working on more leisure or more resort island areas in Mindanao and Visayas. Their current hotels cater mostly to business travelers on short stays of two days and staycations during the weekends. At present, majority or 80 percent of their bookings are Filipino guests. 

“The domestic market is our core,” said Humeau. 

“PH is the center of growth, always been,” he added noting that Red Planet used to be present in Japan with four hotels and Indonesia with seven but they were closed during the pandemic. Thailand is a different market because some of their hotels are under franchise or management arrangement. 

Humeau added that Philippines is doing very well because the budget hotel market is not saturated unlike Indonesia. 

“The future is here,” he added citing an occupancy rate of 75 percent in the Philippines. 

For its new hotel in BGC, Humeau stated, "Our aim is to provide a space where travelers can unwind after exploring Taguig." 

Conveniently located in the heart of Taguig, Red Planet BGC The Fort provides easy access to the city's attractions whether a guest is exploring the vibrant nightlife on 9th Avenue or indulging in shopping and dining, everything is within reach. 

The company noted that the budget hotel industry in the Philippines has experienced significant growth over the past decade. 

Today, the country hosts more than 15,000 budget hotel rooms, catering to a diverse clientele of domestic and international travelers. With 2453 rooms Red Planet hotels is the leader in owning and managing budget hotels in the Philippines.

Red Planet hotels in the country are strategically located. In terms of revenues, the company is now approximately above 2023 by 20 percent and already reaching the pre-pandemic level.

Growth of tourism, return of government and corporate business are the reasons for the good performance of our hotels.