Philippine hotel owners optimistic despite dip in foreign arrivals

Philippine hotel owners and investors are continuing to build more properties, including in the luxury segment, undeterred by slowed tourist arrivals and optimistic about long-term tourism prospects. This was the sentiment at the recent Philippine Hotel Connect 2025, organised by the Philippine Hotel Owners Association (PHOA).

Among those confident in the country’s tourism potential, hospitality standards and ongoing infrastructure development is Filinvest Hospitality senior vice president Francis Gotianun, who stated the company will add 2,000 more keys over the next five years by expanding its upscale Crimson and Grafik brands, both managed by Chroma Hospitality.

From left: One News’s Regina Lay, Alliance Global Group’s Kevin Tan, Ayala Land Hospitality’s Paloma Urquijo Zobel de Ayala, and Filinvest Hospitality Corp’s Francis Gotianun; photo by PHOA

Describing hotels as “patient capital”, Gotianun said: “We need to look beyond just what’s happening today or tomorrow. We have to take a long-term view – five, 10, even 20 years ahead.” This outlook comes despite a nearly one per cent decline in foreign arrivals to 2.1 million from January to April compared to the same period last year, with key source markets such as South Korea and particularly China reporting slower numbers.

Ayala Land Hospitality is also expanding, with plans to double its room inventory to 8,000 by 2030 and introduce two five-star Filipino brands, according to chief creative officer Paloma Urquijo Zobel de Ayala.

The company’s new Mandarin Oriental is scheduled to open in Makati next year, adding to a portfolio that includes Fairmont, Raffles, and Holiday Inn and Suites, along with 12 Seda hotels and eco-island resorts in El Nido, Palawan.

Alliance Global Group president and CEO Kevin Tan said Megaworld Corp will launch the luxury brand Narra Palms, which will consist mainly of suites and villas in Newport City. He welcomed government investments in airport, road and infrastructure development, as well as relaxed visa policies, such as for inbound travellers from India.

Tan also announced plans to bring the Narra Palms brand to Boracay and Mactan, with potential overseas expansion. The group plans to invest nearly US$2 billion to grow its integrated resorts portfolio, with two already underway in Boracay and Cebu.

These are part of several integrated resorts (IRs) in Metro Manila and Clark slated for completion in the next five years, said Vina Claudette Oca, assistant vice president of the Philippine Amusement and Gaming Corp.

Oca said IRs have created synergy with the hospitality sector by adding hotels, convention centres, wellness facilities, food and beverage outlets, and entertainment offerings that help attract visitors.

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