The Sun Group of Companies, the operator of Hotel 99, said it plans to spend up to P9 billion to build more budget hotels nationwide ahead of its planned initial public offering.
SGC president Richard Lim told reporters his company was allocating between P8 billion and P9 billion over the next three to five years to build more budget hotels.
“We are targeting to establish 20 new, fully-functional hotels [with] roughly 3,500 rooms under the Red Hotel and Hotel 99 brands within three to five years,” Lim said.
The company currently has three hotels under the Hotel 99 brand in Caloocan, Quezon City and Pasay City. “Our target is to build 12 more branches within Metro Manila,” Lim said.
Lim said the company was also building three Red Hotel projects in Coron, Palawan; Quezon City near SM North Edsa; and Pasay City.
The company also plans to build Red Hotel in Malate, Cebu, Marikina, and Alabang.
“We are targeting the low to mid-end market for our Red Hotel,” Lim said.
Lim said the company was planning to undertake an IPO in three or five years.
“We are optimistic about our company because of the strong domestic economy,” he said.
SGC’s other business include leasing of high-rise warehousing facilities and numerous condominium projects around Metro Manila and distribution of Xtreme appliances and high-end construction materials.
The company inaugurated bigger headquarters in Manila, which houses its administration, distribution and hotel operations.