The Philippine hotel sector is showing resilience as investors seek opportunities throughout the country and put their money in upscale properties with international and homegrown brands.
Some 158 accommodation establishments are either planned or currently under development, and are set to add 40,084 new keys to the country’s room inventory over the next few years. These projects also represent a staggering 250 billion pesos (US$4.5 billion) in private investment and will create over 55,000 direct jobs, according to the 2024 Philippine Accommodation Pipeline Report of the Philippine Hotel Owners Association (PHOA) and Leechiu Property Consultants.
Geographically, half of the pipeline projects are in Luzon, the country’s economic hub, with 85 new accommodation and 20,116 keys.
Tourism centre Visayas gets 42 per cent of the lion’s share with 57 accommodation and 16,830 keys.
Mindanao represents eight per cent of the total or 16 new accommodation and 3,138 room keys, but is expected to continue on an upward trajectory as its economy continues to grow, the report said.
The report also noted the shift towards decentralisation of investments, with developers from Luzon and Visayas actively seeking expansion opportunities in a diverse range of locations, from Baguio City and New Clark City in Luzon to Davao and Cagayan de Oro in Mindanao.
The rise of alternative accommodation models like branded residences, serviced apartments and condotels signal a shift in market preferences as travellers seek home-like stays and investors look for long-term returns.
As integrated resorts (IR) thrive in the Manila Bay area, major developers are coming in with 2,863 keys in the pipeline, including Westside City Resorts, Hotel Okura Manila Bayshore, and Banyan Tree Manila Bay.
Visayas, particularly Cebu, Boracay and Panglao, is experiencing significant growth in upscale, upper upscale and luxury segments largely attributed to international connectivity. Resorts are seeing a notable surge in popularity especially in Panglao, Mactan and Palawan.
By 2028, when the Philippines aims to have 12 million foreign tourist arrivals, it will be supported by 8,969 new hotel keys across the country, 46 per cent of which will be from international hotel brands.
