SM Investments Corporation has entered into a management agreement with Singapore-based Carlson Hotels Worldwide — Asia Pacific for the operation and management of two hotels worth P2.4 billion.

In a disclosure to the Philippine Stock Exchange (PSE) yesterday, SMIC said the agreement allows Carlson to operate and manage two new hotels under the Regent and Radisson brands, the structure for which will be built by SM subsidiary, Hotel Specialists, Inc.

The hotels will be built within the SM Mall of Asia Complex in Pasay City. The estimated cost of the project is P2.4 billion, with an expected completion date in late 2009. Construction of the hotel will start in middle of this year with KKS International Pte. Ltd. as the project’s architectural designer.

The Carlson group is a leading global corporate solutions and consumer services provider in the marketing, travel, and hospitality industries. The Carlson group owns the brands T.G.I. Friday’s and Regent Seven Seas Cruises, among others.

Under the project’s innovative concept, which showcases a unique ‘hotel-within-a-hotel’ design, the two hotels will share the same building, with the luxurious Regent Manila Bay City housed within the Radisson Hotel Manila Bay City.

Both, however, will have their own separate driveways, entrances, lobbies, guest facilities, and staff. The Radisson will have 500 guest rooms, while the Regent will offer 80 large and plush suites, including a 400 square meter presidential suite.

The two hotels will have first rate amenities such as business centers, swimming pools, fine-dining restaurants, and extensive function facilities. ‘The hotel project is a much welcomed and highly anticipated addition to the rapidly developing SM Mall of Asia Complex,’ said Merril Yu, senior vice president of SM’s Hotel Investment Group.

He added that ‘the two hotels’ prime location creates a vibrant customer base for us, given their proximity to the country’s largest mall, the SM Mall of Asia, and to SMX Convention Center, which today is the country’s largest privately owned venue for trade shows and other high-density events.’