Westin to spend $6 million for renovations (BusinessWorld)

This was published in the November 28, 2005 of BusinessWorld

Corporate News

BY JENNEE GRACE U. RUBRICO, Senior Reporter

Westin to spend $6 million for renovations

The Westin Philippine Plaza Hotel has allocated $6 million to renovate one of the most profitable hotels in the Manila Bay area.
In an interview yesterday, general manager Paolo Campillo told BusinessWorld the renovations will entail increasing the size of the hotel’s restaurant as well as the refurbishing of the rooms.
Westin Philippine Plaza is set to change operators on Jan. 1. The Starwood group, which has been operating the hotel under the Westin brand for 29 years, will be replaced by French hotel operator Accor.
The French hotel management firm will operate the hotel under the name Philippine Plaza Hotel until end-2006. By early 2007, following the completion of the renovations, its name will be changed to Sofitel Philippine Plaza.
"Between now and 2007, the owners remain committed to investing in this property. We’ve closed our restaurants and we’re spending $2.5 million to $3 million in having a fantastic food and beverage concept that will open in February. This was planned by Westin but will be opened by someone else... Next year we’re planning a complete renovation of four to five floors of rooms," Mr. Campillo said.
Once reopened in February, the restaurant will serve Western, Indian, Italian, Chinese and Japanese cuisine, including grills, seafood and will have an extensive dessert station.
The hotel said each food section will have different environments so patrons could dine at different times of the day and experience a new ambience each time.
The restaurant, Mr. Campillo said, will seat 480.
The renovation of the rooms, which will cost roughly $3 million, will start this December, with a "mock-up room" being prepared.
"They make a mock-up room and everyone has comments on things to change," Mr. Campillo said.
He said the renovations will go full blast by April. "The reason we’re waiting for April is that traditionally, October through March is a busy time for the hotel... [April] is the best time to close down half the room inventory," he said.
Mr. Campillo said the hotel is improving its landscape. "We want to make it more tropical, more natural looking using more ferns."
He said the transfer of the hotel management to Accor from Westin will not disrupt operations. "We want to make this as seamless as possible for the guests," he said.
He added that it is unlikely that there would be layoffs or streamlining in the work force, since the organization is "lean."
"At this point the only change forecasted is the change in the general manager," he said.
The company has 490 employees.
Mr. Campillo said the decision of Starwood and the Philippine Plaza Hotel Holdings not to renew the management contract for the Westin brand was reached as "they’re just looking for change."
With the exit of Starwood from the Philippine Plaza Hotel, the Starwood Group currently has no representation in the Philippines.
But the group said it is scouting for other hotel management opportunities in the country.
The 645-room Philippine Plaza Hotel claims to be the only resort style hotel in Manila Bay. It is located near the Philippine International Convention Center the World Trade Center and Intramuros.