Hotel Royal Group (老爺大酒店集團) yesterday opened a facility in Yilan under the brand of The Place, aiming to attract families and backpackers.
The Place Yilan in the National Center for Traditional Arts (宜蘭傳藝中心) complex has 80 standard rooms and suites priced between NT$5,900 (US$193) and NT$17,900 per night. It has another 26 rooms with bunk beds with each bed priced at NT$800 per night.
“The pricing strategy shows Hotel Royal wants to expand its customer base by courting low-budget travelers,” chief executive Winston Shen (沈方正) said, adding the group wants to set the new property apart from its flagship property, Hotel Royal Chiaohsi (礁溪), in a nearby township.
The group operates 11 properties under the Hotel Royal (老爺酒店) and Royal Inn (老爺會館） brands in Taiwan and four additional outlets in Palau, Vietnam, Mauritius and Nicaragua, which are marketed toward relatively affluent travelers.
Shen said the strategy adjustment is in line with the group’s aspiration to promote tourism in Yilan, especially to help boost the National Center for Traditional Arts and local artists.
The 3.5 hectare park is a 15-minute car ride from Luodong (羅東) Station in Yilan, which is not very convenient for travelers without cars. However, visitors can experience traditional cultural shows and eat local food, Shen said.
The Place Yilan expects domestic travelers to account for 80 percent of its clientele and foreign group travelers to contribute the remaining 20 percent, Shen said.
It might take a while for independent travelers to take interest in the property, which is a joint venture with PXMart (全聯), which has a 15-year government lease to help energize the culture complex.
The group plans to open another Place property in Taichung next year after inking a cooperation agreement last year with Taichung-based builder Da Yi Construction and Development Co (大毅建設).
While the field is growing increasingly crowded in the north, demand for lodging remains high in central Taiwan, Shen said.
The group is also planning a new property in Taipei’s Nangang District (南港), likely to serve under The Place brand starting 2019.
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