BE Group, Marriott ink deal for 200-room AC Hotels

MARRIOTT International is set to make its return to Cebu City through a partnership with Cebu’s own BE Group of Companies.

The two companies signed a contract on Oct. 28, 2024 to open a 200-room AC Hotels by Marriott (AC Hotels) in BE Group’s upcoming integrated project, BE Uptown Park, on Juana Osmeña St., Cebu City.

This will be the first AC Hotels in the Visayas and Mindanao and marks BE Group’s first collaboration with an international hotel brand.

The BE Group of Companies, known for its properties BE Resort Mactan, BE Grand Bohol and BE Resort Siargao, envisions the AC Hotels as a central feature of BE Uptown Park, complementing its 25-story residential and commercial spaces. The hotel’s groundbreaking is slated for 2025, with an anticipated completion by 2030.

“Cebu City is a vital market for us to re-enter,” said Peter Gassner, Marriott International’s regional vice president for hotel development in Asia Pacific. “Our first hotel in the Philippines was the Cebu City Marriott Hotel, and since its closure, our customers and over a million Marriott Bonvoy members have asked us to return.”

BE Group of Companies chief executive officer and president Grand Benedicto described the Marriott partnership as a long-awaited goal, noting that they first approached Sheraton (previously managed by Starwood) about bringing the brand to Cebu nearly 20 years ago. However, as Sheraton sought a larger site, BE Group pivoted to develop its BE Resorts brand instead.

“I can say that we’ve been courting the brand for quite some time now,” he said.

With this new Marriott partnership, Benedicto affirmed a commitment to long-term collaboration.

“Rest assured that we will be working with Marriott to see what other projects we can work together,” he said.

Gassner sees AC Hotels as a “perfect fit” for BE’s latest project, describing it as a design-driven lifestyle brand that offers a distinctive travel experience.

“We are confident that the hotel will do well,” he said.

Confident in the hotel’s prospects, Gassner is optimistic about the Philippine tourism landscape, underscoring the importance of infrastructure development in boosting visitor numbers.

Cebu, he said, is well-positioned to attract more tourists due to improved infrastructure, the Mactan-Cebu International Airport and its natural appeal.

With the right infrastructure in place, Gassner believes the Philippines could potentially double its 2024 tourist target of 7.7 million in the years ahead.

The hotel giant currently operates 10 properties across Manila, Clark, Cebu and Palawan. The Covid-19 pandemic had delayed the firm’s expansion plans, but with travel rebounding, Gassner is confident that Marriott’s projects will proceed as planned.

Since Marriott exited Cebu in 2017 following the end of its Ayala partnership, it has re-established a presence in the province with the Sheraton Cebu Mactan Resort in Lapu-Lapu City and two Fairfield by Marriott properties in Mandaue and Lapu-Lapu City, with the latter nearing completion. / KOC

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