Hotel Sogo allots P1B for expansion

MANILA, Philippines – Lodging and services chain Hotel Sogo is investing about P1 billion to expand its footprint as part of its reinvention.

The Japanese-themed hotel establishment that caters to mostly class B, C and D plans to build three to five outlets this year, said Hotel Sogo chief executive officer Gus Corpus.

Development cost of each branch is pegged at a maximum P200 million.

Among the possible sites for construction are Manila, Makati, Quezon City, Cebu, Davao and Bacolod.

The re-invention of the Sogo brand is aimed at removing the stereotyped notion associated with Hotel Sogo.

“We feel that there is a misconception attached to us, that we are a short stay hotel and that precludes other people like travellers, both local and foreign, from staying with us,” Corpus told The STAR.

“We want to cater to family, travellers, students and peers for any occasion,” he said.

To go full blast with its reinvention, the company hired celebrities as its endorser.

“We’re not used to spending this much. This is a milestone and definitely a big investment for us.  We expect an increase in revenues and occupancy,” Corpus said in an interview.

Last year, occupancy rate was at the 60 to 70 percent range.  For this year, the group aims to increase occupancy to 90 percent.

The hotel chain aims to break the monotony of traditional lodging and service as it comes up with the idea of themed rooms such as Hello Kitty, James Bond, Indiana Jones among others in its selected branches.

The hotel will also launch its mobile application in iOS and Android for easy online bookings and reservations.