Author Topic: Why are there no budget hotels in BGC?  (Read 1070 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 ;)

Offline mandyyanga

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Re: Why are there no budget hotels in BGC?
« Reply #2 on: January 08, 2018, 09:09:57 AM »
This is probably because of the establishments around and in the area of the condos in the fort. Add to the factor that most of the people living there are rich.
« Last Edit: January 29, 2018, 01:13:03 PM by mandyyanga »

Offline Zimi

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Re: Why are there no budget hotels in BGC?
« Reply #3 on: January 08, 2018, 03:19:15 PM »
There are lots of condo units in BGC leasing in AirBnB. Most rates would fall into "budget rate".

I think it is not feasible or ROI would be too low.

Offline FrankRil

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Re: Why are there no budget hotels in BGC?
« Reply #4 on: January 11, 2018, 12:34:51 AM »
Makes sense. Or hotels simply know they can charge higher prices and still get business so they don't bother with budget options.