Investing for an Airport Hotel

In many regions of the world, airports are being renovated with a growing number of air travelers demanding more pleasant environment including green comfort rooms, a variety of restaurants, gift shops, currency exchange counters, automated bank teller machines and a hotel located within a walking distance from the terminal.


Airports should not have any dysfunction. These are show windows of a destination aside from an economic indicator of the prospect of attracting tourists and investors.
Much more, airports have to be friendly and peaceful. Of course, brawls and fracas should never be allowed to happen as it is disgusting to the sensibilities of the other foreign nationals and traumatic for travelling children.

Airport hotels are part of the convenience of travel. It may have varying policies on whom to serve, either exclusive to guests staying overnight or those availing day rates? Many airport hotels in Metro Manila during the early 90’s were serving airline lay-over passengers who were either bumped off from their flights due to reservations snafu or cancellation of flights as a result of unfavorable weather.

Sometimes travelers under force majeure are left at their own looking for a nearby hotel for accommodation. There are airport stresses caused by technical problems arising from flight delays when airplanes suddenly developed mechanical trouble and there is no immediate aircraft replacement.

Airport hotels are necessities but could also become diminishing returns ventures unless revenues are enhanced by selling services to travelers regardless of whether they book a room for a night or develop other leisure products like Spa, health clubs and gambling casinos for business synergies.

In places where gambling license are issued, airport hotels branch out into gambling casinos as a come on for travelers relaxation while waiting for their flights. Theme restaurants also become fashionable when someone seeking a break from airport food could walk over for a meal and enjoy a more tranquil atmosphere.

Waterfront Hotel along the Mactan International Airport in Cebu located just across the terminal is the only surviving airport hotel outside of Metro Manila. It is afloat because of a Casino. The first 5-star airport hotel in the late 70’s built in Manila at the former Manila International Airport, the Philippine Village Airport Hotel has long closed shop in the year 2000 and the building has been mothballed for the last 12 years for lack of investors to undertake its renovations.

The hotel has made its mark as an airport hotel and casino and has seen the best during the Marcos era.
At the NAIA 3, along Pasay City, a new airport hotel owned by Alliance Global operated by Marriot of the US international chain of hotel is given a run of their money against a sister company competitor Maxim’s which has a Resorts World casino and a huge theater for the performing arts. Maxim’s is a full service hotel suite with butler’s service.
A new concept in luxury hotel accommodations.
In the near future, luxury hotels will be defined with full butler’s service. With uniform staff doubling as personal assistant to take care of meal arrangements, laundry and even setting up appointments for business meetings.

Among the new properties coming up in the Makati Central Business District, Raffles Suites a joint venture of the Ayala Land and Kingdom Hotels of Saudi Arabia will be a dream come true when every hotel guests are treated in a spacious suites like royalties. Hotel accommodations are going over from the necessity among travelers into a standard of measurement among the rich and famous.
It has become a status symbol when one stays at a hotel carrying the international brand of Radisson Blue, Shangri-La or Sofitel. Many among these brands are now in Mindanao, debuting in Davao City in the next 36 months.

The possibility of Cagayan de Oro as a magnet for international hotel management companies to operate locally owned properties will be a new dawn in the hospitality industry in Northern Mindanao. It could be a good direction to uplift the competitive standard of services that we lack against the other big Asian cities and improve our share of visitors’ arrivals with a marketing penetration in the international tourist market.
Government through the Department of Tourism recently gives us an update during the ADB Board of Governors meeting of the 1st quarter foreign visitor’s arrivals to have hit 1.148 million or on-tract with the 4.6 million full year forecast for 2012. It was higher by 16.03% more than the 989,501 arrivals recorded in the same period last year.

Internationally rated airports are attractions for hotel investments. Returns of investments for tourism infrastructure projects are easily projected to recoup basing on the airline capacities and flight frequencies together with their load factor. Statistics in Northern Mindanao are favorable for more business class hotel development. With a growing population of 1.6% per year and an improving economic standard based on moderate 4 % annual GDP growth forecast of the Government.


Ped T. Quiamjot is one of the brilliant columnists of a local newspaper in Cagayan de Oro City and currently the General Manager of Pryce Plaza Hotel Cagayan de Oro. His column talks on various issues and concerns affecting the business sector and tourism industry.