SM Investments Corp. (SMIC), the investment holding firm of the family of retail tycoon Henry Sy, has signed an agreement with Singapore-based Carlson Hotels Worldwide – Asia Pacific for the construction of two new hotels within the SM Mall of Asia complex, estimated to cost around P2.4 billion.

Under the management agreement forged by the two parties, SMIC, through unit Hotel Specialists Inc., will operate and manage the two new hotels under the upscale Radisson Hotel and Regent Hotels & Resorts brands. Construction will begin in the middle of the year and is slated for completion in 2009.

The two hotels – Regent Manila Bay City  and Radisson Hotel Manila Bay City – will share the same building but will have separate driveways, entrances, lobbies, guest facilities and first-rate amenities such as business centers, swimming pools, fine dining restaurants and extensive function facilities.

The Radisson Hotel will have 500 guest rooms while the Regent will offer 80 large and plush suites, including a 400-square meter presidential suite. “The hotel project is a much welcomed and highly anticipated addition to the rapidly developing SM Mall of Asia complex.

The two hotels’ prime location creates a vibrant customer base for us, given their proximity to the country’s largest mall and to SMX Convention Center, which today is the country’s largest privately owned venue for trade shows and other high-density events,�? said Merril F. Yu, senior vice president of SM’s Hotel Investment Group.

One of the world’s leading hotel franchisors, the Carlson group operates five lodging chains with more than 950 properties in 70 countries. Aside from the Radisson and Regent Hotels, it also owns the mid-market Park Plaza Hotels & Resorts chain, as well as the Park Inn economy brand.

Its Country Inn & Suites chain provides extended-stay service in about 420 locations. The Carlson group likewise owns the brands T.G.I. Friday’s and Regent Seven Seas Cruises, among others. Several new developments have sprung up within  the SM Mall of Asia as part of continuous efforts to attract more shoppers, businesses and tourists.

These include the Esplanade, OneE-com Center, SM Arena and The Science and Discovery Center. The Esplanade is a 1.5-kilometer strip of fully landscaped open-space allocated to house retail and entertainment establishments and can accommodate up to 800 guests.

SM Arena, on the other hand, is a sprawling indoor facility for big-time sports and entertainment events that can seat over 16,000 spectators.

This expansive arena is expected to be the venue of choice of major gigs of well-known international artists in the music and entertainment industries. Meanwhile, the Science and Discovery Center – the first of its kind themed-park devoted solely to science and technology – is partnership between SM Prime Holdings and US-based Leisure Entertainment Consultancy.

It features a digital planetarium and a wide range of technology and science-themed presentations and exhibits.