Economy | Red Planet Hotels Expands Philippine Portfolio with 150-Room Davao Development

Tune Hotels

Davao City, Philippines — The continued rise of Mindanao’s commercial capital as a tourism and investment hub gains further momentum as Red Planet Hotels Limited (RPHL), a prominent Asian hospitality investment group, announces the development of a 150-room hotel along J.P. Laurel Avenue in Davao City.

Scheduled to open in February 2013, the new property marks a strategic expansion of Red Planet’s Philippine portfolio and reinforces investor confidence in Davao’s accelerating economic landscape.

.

Tune Hotels Lobby in Penang, MY

Tune hotels at night in downtown KL 

Strategic Expansion in a High-Growth Market

The upcoming Davao hotel forms part of a broader nationwide rollout by Red Planet, which includes additional properties in Pampanga, three in Metro Manila, and one each in Cebu and Cagayan de Oro. Six of these developments are expected to commence operations within the following year, signaling an assertive growth trajectory in key urban centers across the country.

Davao City’s inclusion in this expansion underscores its rising profile as a primary gateway to Mindanao — driven by sustained infrastructure improvements, a stable business climate, and increasing visitor arrivals.

Positioned along J.P. Laurel Avenue, one of the city’s major commercial corridors, the property will benefit from proximity to shopping districts, business establishments, medical institutions, and transportation networks — a prime location for both business and leisure travelers.

Tune Hotels in London, UK

Affordable Efficiency Meets Quality Comfort

The hotel will operate under the Tune Hotels brand, known for its streamlined service model that prioritizes comfort, security, and value. The concept delivers high-quality sleep accommodations at accessible price points, catering to the growing segment of cost-conscious yet quality-driven travelers.

By focusing on operational efficiency while maintaining modern standards in safety, cleanliness, and guest comfort, the limited-service model offers strong fundamentals for investors seeking stable returns in emerging urban markets.

Boosting Davao’s Tourism and Hospitality Sector

The entry of an established regional hotel operator signals renewed optimism in Davao’s tourism and hospitality industry. The city has witnessed steady growth in domestic and international arrivals, supported by its reputation for safety, environmental stewardship, and business-friendly governance.

Industry analysts note that the addition of internationally branded accommodations enhances a destination’s competitiveness. The development is expected to:

• Generate employment opportunities during construction and operational phases

• Stimulate ancillary sectors such as retail, transport, food services, and local suppliers

• Increase room inventory to meet rising visitor demand

• Strengthen Davao’s positioning as a meetings, incentives, conferences, and exhibitions (MICE) destination

The multiplier effect of hospitality investments often extends beyond tourism, influencing real estate values, infrastructure development, and overall investor confidence.

Investor Outlook: A Promising Hospitality Landscape

With the Philippine economy on a growth trajectory and secondary cities gaining prominence, hospitality developments outside Metro Manila are increasingly viewed as high-potential investment plays. Davao, in particular, stands out for its diversified economy anchored by agribusiness, trade, education, and services.

Red Planet’s expansion strategy reflects a calculated response to this evolving market dynamic — targeting cities with sustainable demand drivers rather than short-term speculative growth.

As regional tourism continues to expand and air connectivity improves, developments such as the Davao hotel project are positioned to capture both domestic mobility and international travel flows.

A Catalyst for Continued Growth

The forthcoming opening in Davao represents more than the launch of a new accommodation facility — it signifies a vote of confidence in the city’s future. For investors, it highlights the viability of provincial urban centers as engines of long-term value creation. For Davao, it marks another milestone in its journey toward becoming a premier tourism and business destination in Southeast Asia.

With construction underway and opening slated for early 2013, stakeholders across the tourism, property, and investment sectors will be closely watching the project as a benchmark for continued hospitality growth in Mindanao.

Tune Hotels is a limited service hotel brand that provides "5-star sleeping experience at 1-star price."

Here is another article published in Tune Hotels website last Oct 15, 2010.


Tune Hotels to add 1,023 rooms under collaboration with Red Plane Hotel. The company is developing a portfolio of Tune hotels in China, Indonesia, Philippines, Thailand and Bangladesh. It is currently constructing 1,023 hotel rooms through six hotels in Indonesia - Jakarta, Thailand – Bangkok and Pattaya, the Philippines - Angeles City and two in Manila. More announcements expected read more...

Photos above courtesy of Tune Hotels website.