Corporate News
Posted on November 30, 2015 11:02:00 AM
By Nickky F. P. de Guzman, Reporter
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JOSE MARI del Rosario was a nominee for this year’s Ernst and Young Entrepreneur of the Year Philippines award. He is the president and chief executive officer of Microtel Inns and Suites (Pilipinas), Inc. (MISPI) and Microtel Development Corp, which provides no-frills hotels in the country, particularly targeting the middle market. His success story based on his determination and a keen eye.
JOSE MARI DEL ROSARIO -- BW FILE PHOTO
“Look at opportunities as keys, in the sense that you have your eyes wide open to seize them,” he told BusinessWorld at the sidelines of the Hotel Restaurant Cafe travel and tourism event for 2015, where he was the guest speaker.
With eyes open for business opportunities, Mr. del Rosario has been able to change the hotel landscape in the country. In 2001, he was able to put up the first international hotel under MISPI in Hacienda Luisita, Tarlac, after securing the master franchise of Microtel Inn and Suites by Wyndham -- an international hotel group with 7,670 hotels worldwide, including recognizable brands like Ramada, Travelodge, Baymont, Tryp, and Wingate, among others.
Almost 15 years later, Microtel has now expanded to 13 hotels across the country, including in Metro Manila, Palawan, Boracay, Batangas, and General Santos City.
Many, however, thought that the now-57-year-old businessman wouldn’t stray from the five-star hotel business. After all, his working life revolved around the ins and outs of luxury hotels.
He started as a front desk receptionist at the Hotel Lausanne Palace in Switzerland then became a food and beverage coordinator at The Manila Peninsula Hotel. His hard work paid off; he eventually became the first Filipino general manager and chief operating officer of the iconic Manila Hotel.
But he deviated and chose the mid-market, which he thought was underserved.
“‘Sana’ (with hope) was the operative word. Sana may malamig na aircon. Sana okay ang kama. Sana may cable. Sana may fire exit (With hope, there’s cold air-conditioning. With hope, the bed is okay. With hope, there’s cable. With hope, there’s a fire exit). I want to answer the sana category,” he said.
Despite Microtel being a budget, no-frills hotel, Mr. del Rosario is quick to say that Microtel isn’t a motel.
“The quick answer is no. The brands you mentioned have a recognition [of being motels]. Let’s put it this way; as they call it in Japan, they are ‘love hotels.’ In terms of marketing and positioning, we don’t think there’s a direct competition. Even if you stay in our hotel for three hours, overnight pa din ang rate. Lugi ka. (The hotel rate is still overnight. You’re short-changed),” he said, smiling.
Microtel caters to what he calls the “road warriors” -- pharmaceutical agents, auditors, and businessmen who are always on the go. It is also home to families and barkadas(friends) on vacation and on a budget. The peak seasons are usually the first and last three months of the year.
But, how hard or easy is it to handle the Microtel franchise?
“It is straightforward. We sit down with the prospect. The franchise lasts for 20 years. It’s as if you’re going to marry. I want to know who am I going to bed for the next 20 years. That’s how long the franchise contract is,” he said.
The one-time franchise fee is $1,000 per room he also said. After that, there are royalties once you start operating.
Still, the real challenge is maintaining the franchise and keeping up with competitors.
“Keeping the momentum going is not an easy task. When we started, everybody was looking at five-star hotels. Now, people are looking midmarket, where we are. Robinsons, SM, and even Ayala have their own. All are of these are challenges,” said Mr. del Rosario.
To keep up with these challenges, Microtel banks on word of mouth. During the first quarter of 2014, Microtels in Baguio, Puerto Princesa, and Davao received certificates of excellence from TripAdvisor, an American Web site for room ratings, and reviews from travelers.
“Word of mouth is very important. TripAdvisor is a form of word of mouth. Patay na ’pag ’di maganda ang rate. (You’re dead if you don’t get a good rating),” he said.
“We engage replies immediately. I have instructed our managers to refund money if it [comes] to that,” he added.
Microtel sees no slowing down, especially now that, according to Mr. del Rosario, “there’s a growth of disposable income [among Filipino travelers], the infrastructure has improved albeit complaints, plus [there are] budget fares in airlines.”
Looking forward, Mr. del Rosario, a father of four, said his firm has also acquired the Philippine franchise of Tryp hotel, also under the Wyndham group.
“This time it is sexier,” he said, clarifying that it would have “more vibrant colors and [a] hip restaurant.” He plans to open at least five Tryp properties.
With eyes open for business opportunities, Mr. del Rosario has been able to change the hotel landscape in the country. In 2001, he was able to put up the first international hotel under MISPI in Hacienda Luisita, Tarlac, after securing the master franchise of Microtel Inn and Suites by Wyndham -- an international hotel group with 7,670 hotels worldwide, including recognizable brands like Ramada, Travelodge, Baymont, Tryp, and Wingate, among others.
Almost 15 years later, Microtel has now expanded to 13 hotels across the country, including in Metro Manila, Palawan, Boracay, Batangas, and General Santos City.
Many, however, thought that the now-57-year-old businessman wouldn’t stray from the five-star hotel business. After all, his working life revolved around the ins and outs of luxury hotels.
He started as a front desk receptionist at the Hotel Lausanne Palace in Switzerland then became a food and beverage coordinator at The Manila Peninsula Hotel. His hard work paid off; he eventually became the first Filipino general manager and chief operating officer of the iconic Manila Hotel.
But he deviated and chose the mid-market, which he thought was underserved.
“‘Sana’ (with hope) was the operative word. Sana may malamig na aircon. Sana okay ang kama. Sana may cable. Sana may fire exit (With hope, there’s cold air-conditioning. With hope, the bed is okay. With hope, there’s cable. With hope, there’s a fire exit). I want to answer the sana category,” he said.
Despite Microtel being a budget, no-frills hotel, Mr. del Rosario is quick to say that Microtel isn’t a motel.
“The quick answer is no. The brands you mentioned have a recognition [of being motels]. Let’s put it this way; as they call it in Japan, they are ‘love hotels.’ In terms of marketing and positioning, we don’t think there’s a direct competition. Even if you stay in our hotel for three hours, overnight pa din ang rate. Lugi ka. (The hotel rate is still overnight. You’re short-changed),” he said, smiling.
Microtel caters to what he calls the “road warriors” -- pharmaceutical agents, auditors, and businessmen who are always on the go. It is also home to families and barkadas(friends) on vacation and on a budget. The peak seasons are usually the first and last three months of the year.
But, how hard or easy is it to handle the Microtel franchise?
“It is straightforward. We sit down with the prospect. The franchise lasts for 20 years. It’s as if you’re going to marry. I want to know who am I going to bed for the next 20 years. That’s how long the franchise contract is,” he said.
The one-time franchise fee is $1,000 per room he also said. After that, there are royalties once you start operating.
Still, the real challenge is maintaining the franchise and keeping up with competitors.
“Keeping the momentum going is not an easy task. When we started, everybody was looking at five-star hotels. Now, people are looking midmarket, where we are. Robinsons, SM, and even Ayala have their own. All are of these are challenges,” said Mr. del Rosario.
To keep up with these challenges, Microtel banks on word of mouth. During the first quarter of 2014, Microtels in Baguio, Puerto Princesa, and Davao received certificates of excellence from TripAdvisor, an American Web site for room ratings, and reviews from travelers.
“Word of mouth is very important. TripAdvisor is a form of word of mouth. Patay na ’pag ’di maganda ang rate. (You’re dead if you don’t get a good rating),” he said.
“We engage replies immediately. I have instructed our managers to refund money if it [comes] to that,” he added.
Microtel sees no slowing down, especially now that, according to Mr. del Rosario, “there’s a growth of disposable income [among Filipino travelers], the infrastructure has improved albeit complaints, plus [there are] budget fares in airlines.”
Looking forward, Mr. del Rosario, a father of four, said his firm has also acquired the Philippine franchise of Tryp hotel, also under the Wyndham group.
“This time it is sexier,” he said, clarifying that it would have “more vibrant colors and [a] hip restaurant.” He plans to open at least five Tryp properties.
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