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In recent years, the number of cost-conscious business and leisure travelers in the Philippines
has been growing, resulting in a great demand for economy lodgings and a glut in deluxe or five-star hotel accommodations. However, a good number of the economy lodgings—primarily because of the “mom-and-pop” nature of their operations— have fallen short of the minimum guest satisfaction levels for quality, safety, and security as well as value for money.

Experienced hotelier Jose Mari del Rosario capitalized on these unmet mid-market lodging needs by purchasing the master franchise of Microtel Inns & Suites for the Philippines from its United States-based owning company, US Franchise Systems Inc. Together with a group of like-minded professionals and entrepreneurs, del Rosario had formed Microtel Inns and Suites (Pilipinas) Inc. (MISPI) in 1998 to put up budget hotels in various parts of the Philippines. They did this despite the raging Asian financial turmoil and the real estate crisis at the time.

“The no-frills Microtel hotel concept is the perfect hotel product for the Philippine market,” says del Rosario, president and chief executive officer of Microtel Inns & Suites (Pilipinas). “Its uniqueness in design, cost structure, and philosophy of operation definitely revolutionizes the so called budget or limited-service segment of the industry.”

After years of looking at viable locations nationwide and of convincing the right people to partner with it, the company came up with the country’s first Microtel Inn & Suites in Luisita, Tarlac, in February 2001, with the AC Hotel Corp. as its franchisee. A few months later, in May 2001, another Microtel was opened in Sto. Tomas, Batangas, with the First Batangas Hotel Corp. as franchisee. And just a month later, in June 2001, a third Microtel opened in Cavite with the Eagle Ridge Hotel Corp. as franchisee.

Says del Rosario: “Although these places in the province are not popularly known as tourist spots, we decided to bring Microtels to them because of their considerable markets for budget hotel accommodations. Big industrial parks, convention centers, world-class golf courses, and schools are all present in these places.”

Not long after, four more franchised Microtels got added to the company’s list: Microtel Baguio, which was acquired in November 2003 by the Hernandez family, owners of Victory Liner Inc., under JIH Prime Management & Development Corp.; the first Microtel resort chain wide, which was inaugurated by Diniwid Beach Hotel Corp. in Boracay in November 2006; the first chartered Microtel branch in Mindanao, which opened in Davao City in October 2007 under Damosa Land Inc.; and the recently opened Microtel Cabanatuan.

Del Rosario says these three Microtel facilities have upgraded the quality of accommodations in the country’s key cities  and resort destinations. They offer high-standard but reasonably priced lodging facilities to budget-conscious business and leisure travelers; corporate and institutional accounts; associations; and balikbayans as well as local residents.

As a limited-service lodging facility, every Microtel uniformly offers what is essential for its guests: a very comfortable room and a filling breakfast to start the day. Experienced hotel managers and the management team on board ensure that every visitor gets the same quality of stay as that in any Microtel whether in the Philippines or abroad.

“Our approach is back-to-basics,” says del Rosario. “We offer consistently clean, comfortable, safe, and secure rooms at value rates. Indeed, Microtels fill the growing demand for cost-efficient business and leisure travel.” For investors, Microtel offers low development and operating costs. The construction costs of every franchisee are minimized because of the compact rooms, the built-in furniture, the less elaborate décor, and the elimination of low-profit areas. Overall, the hotel’s small size contributes to ease of operation and less demand for manpower—ideally a staff of only 15 for a 50-room inn—without compromising quality.

“All these and more are in the pipeline to further realize our vision of developing a chain of world-class limited-service hotels throughout the country,” says del Rosario. “We wish to become the top-of-mind brand in the industry, such that when traveling, people will ask, ‘Is there a Microtel there?”

Interested in a Microtel franchise? Check out our directory listing here.