Author Topic: Why are there no budget hotels in BGC?  (Read 84 times)

Offline aljosamarkovic

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Why are there no budget hotels in BGC?
« on: August 17, 2017, 10:44:32 AM »
My question is: Why are there no budget hotel chains (Red Planet, Go Hotels) in BGC?

Is there an obvious barrier to entry (law, no buildings for them at the moment) that prevents them from setting up a budget hotel in BGC? Real estate prices are not too far from those in Makati business district and there are plenty of budget hotels in Makati. Does anybody have an idea?

Offline PinoyBroker

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Re: Why are there no budget hotels in BGC?
« Reply #1 on: August 17, 2017, 10:44:16 PM »
My question is: Why are there no budget hotel chains (Red Planet, Go Hotels) in BGC?

Is there an obvious barrier to entry (law, no buildings for them at the moment) that prevents them from setting up a budget hotel in BGC? Real estate prices are not too far from those in Makati business district and there are plenty of budget hotels in Makati. Does anybody have an idea?

Probably, Real Estate prices are too high to put up those hotels and ROI may be small to even consider putting up one.... which is also why there are only two carwash establishments in the area ;)