If you think Davao City’s economy has reached its apex and has no more room for growth – think again. Haven’t you noticed all the numerous new establishments that have been sprouting in the city these past two years, especially the so-called boutique hotels?
“This is a good sign for Davao City, considering that most of them were put up by local investors,” Small Hotels Association of Davao (SHAD) vice president Mary Ann Montemayor told Edge Davao. Montemayor, whose family owns Villa Margarita, has been in the forefront of Davao’s tourism industry for the past several years.
Boutique hotels, she said, fall under the Department of Tourism’s standard category. These are hotels patterned after Europe’s bed and breakfast establishments that have distinct identities and have more amenities than just being simple inns.
“Boutique hotels are usually smaller hotels with less than a hundred-room capacity,” she said. This hotel type comes with a restaurant or a café which may not be really fancy, but which offers an additional facility for clients.
SHAD alone has a membership of up to 40 hotels. Boutique hotels are required to be operational for at least a year before they can become SHAD members.
“Boutique hotels are opening up in Davao to position themselves for the city’s potential growth,” Montemayor said. The property sector is upbeat in anticipation of such growth as evidenced by the rapid influx of investors behind the surge of various condominium projects, real estate property development and business process outsourcing companies, she added.
She said at least 29 more companies are eyeing Davao City as the location for their businesses. A very obvious economic indicator for Davao, she said, is the investment here of the Ayala Group of Companies.
Both the private and government sectors in Davao City are excited about the economic goings-on in the city and are glad that instead of just taking a wait and see attitude, investors are coming in and initiating development even before actual demand for their products are realized.
“There is a rise in boutique hotels, although the number is not that significant yet,” city tourism officer Rizal Giovanni Aportadera said. He added that investors prefer to build boutique hotels here because “they are easier to manage since it only requires a small number of rooms to accommodate a specific number of guests at a time.”
Montemayor agrees, saying that putting up a small hotel is easier than tying up with an international hotel chain. The good news here, she said, is that most of those putting up these businesses here are homegrown.
Boutique hotels
Several boutique and small business hotels have been established and started operations in the city the past two years alone. These hotels are expected to fill in the 1,700 rooms needed to augment the city’s 3,000 room capacity in preparation for its bid to host major events like the MICE 2012 and the Ad Congress.
Hari Royale Suites
Topping the list is the six-storey Hari Royale Suites located inside the city’s Chinatown district, specifically on Sta. Ana Avenue. The hotel building consists of a ground floor restaurant, a second floor spa and 33 suites from third to the sixth floors. Owner Fred Melivo, whose business success can inspire small and medium entrepreneurs, said what distinguishes Hari Suites from the other hotels here is its affordable rates.
Pinnacle Hotel
Aportadera said another small hotel that is expected to be in full operation by early 2010 is Pinnacle Hotel, which is expected to add 200 more rooms to the city’s inventory. What makes the Pinnacle Hotel a cut above the rest is its environment-friendly facilities, making it the first such building in Mindanao. The 12-storey hotel, also located on Sta. Ana Avenue, boasts of its ability to use natural light and cross ventilation on each floor. The hotel is also expected to make use of LED lighting system as well as elevators and air conditioners that will require less energy.
Casa Leticia 2
The Dela Paz-owned Casa Leticia Hotel is already a Davao City landmark and, after only a few years of serving travellers, has branched out. One thing about this hotel is the management’s foresight in getting just the perfect location. The first hotel is located just across People’s Park. The second hotel is ideally located adjacent to the Davao City Overland Transport Terminal.
D’Leonor Hotel
Another boutique hotel that recently opened is this small but classy place along J.P. Laurel Avenue which is in the northern part of the city. It is a stone’s throw from such landmarks as the Pryce Business Park, Victoria Plaza and Gaisano Mall. What makes D’Leonor Hotel a unique temporary abode for travellers are its balconies. What’s more, its rooms come complete with a dining section pantry (with rice cooker, microwave and refrigerator) and what serves as a living room. The story of how this hotel came to be is also worth several pages more since it was built out of an existing need arising from their original pharmaceutical business.
Sampaguita Tourist Inn
Nestled just within the heart of the city is the Sampaguita Tourist Inn, a 108-room capacity boutique hotel. This place is ideal for a wide range of travellers, from the backpacker who demands a cheap fan room to the business traveller who requires an air conditioned room. The place, which is strategically located along Quirino Avenue, is a short commuting distance from Gaisano South Citimall, Gaisano Mall of Davao and the New City Commercial Center or NCCC Mall in Matina.
More boutique hotels are coming in, evidence of the bustling economy Davao City is experiencing. Of course, these smaller hotels expect to face the same challenge faced by the bigger and more luxurious hotels in Davao City.
“The main challenge is really how to attract guests,” Aportadera said. But with all the activities and conventions scheduled in the city the whole year round, demand is almost always guaranteed.
“We can’t say that demand is really high for now, but we are all very optimistic,” Montemayor said. That is the reason why we are pushing the “Make It Davao Now!” campaign so we can attract not just the MICE people but also other local and foreign tourists.
Montemayor said they could not simply wait and see what was going to happen. “The future of Davao City is bright and we are making it happen now,” she added with conviction.
