International budget hotel chain Microtel will soon start its biggest project in the country after clinching a deal with a local developer.

Benedicto-led Enrison Land Inc. (ELI) will soon begin construction of a 150-room mid-rise Microtel resort hotel on a 5,000-square meter property located between two major resort hotels in Mactan Island.

Grand Benedicto and ELI signed last Wednesday a franchise agreement with Microtel Inns and Suites Philippines Inc., the hospitality arm of the Phinma Group.

The Microtel resort hotel in Mactan is projected to hold its soft opening in 10 months.

Benedicto said that the resort hotel is scheduled to officially open early 2008, just before the Sinulog festivities.

This will help address the shortage of hotel rooms in the province, especially with the growing number of local and foreign tourists every year, he said.

Microtel Boracay resident manager Dean Cid earlier said that because Microtel hotels follow a standard design, new ones can be operational in less than a year.

Like all other Microtel hotels in the country, Microtel Cebu will follow a bed and breakfast theme and will be six to eight stories high.

Microtel opens its outlets to franchising at a rate of P1.1 million (US$22,435) per room with a minimum requirement of 50 to 60 rooms per development.

Cid said Microtel Cebu will focus on budget travelers as its niche market.

Room rate for the future Cebu branch will range from P2,000 to P3,000, he said.

Amenities at Microtel branches include chiro-practic beds, restaurant, Internet connection, swimming pool, parking space and 24-hour security, among others.

Microtel Cebu, which is ELIs first hotel venture, will be the companys biggest development in the Philippines.

In hopes to further establish their presence here, Microtel is now looking at opening its second branch in Cebu. The hotel chain is looking for a 3,000- to 4,000-square meter property within the Asiatown IT Park.

Microtel Inns and Suites is an international hotel chain of limited service hotels under the Global Hyatt Group. It has more than 290 properties worldwide, including those in Baguio, Tarlac, Cavite, Batangas and Boracay.

Microtel Cebu is the companys seventh hotel development project in the Philippines. Its sixth project is in Lanang, Davao, which is being constructed by the Floirendo-led Damosa Land Inc.

It is the first Microtel hotel in Mindanao and is targeted to open in the third quarter of this year.