Property experts see opportunities in luxury hotel and resort projects

Industry analysts said Philippine developers may increasingly turn to luxury hospitality projects as the residential sector faces signs of oversupply.

Consultants noted that while the country’s tourism assets remain largely untapped, developers have been cautious in investing in high-end hotels and resorts. Bill Barnett, a veteran consultant with experience in hospitality projects across Asia-Pacific, observed that many operators remain traditional in their approach, with some treating the sector as volume-driven rather than differentiated.

“With the residential market heavily supplied, the natural move for developers is to identify niches where demand remains resilient, and luxury hospitality is one of those areas,” he said.

Barnett stressed that accessibility will be crucial for future growth, pointing out that resorts require strong air links not only for guests but also for logistics and staffing. He added that high-value travelers typically expect direct flights to destinations, which remains a challenge in certain Philippine markets.

At the same time, Alfred Lay of Leechiu Property Consultants reported that more than 35 luxury hotel projects are in the pipeline nationwide, representing over 7,500 new rooms in the next four years. With unannounced projects included, the total could rise to 50 hotels and more than 10,000 rooms.

Colliers Philippines also noted that occupancy levels for five-star hotels remained steady at 67% in the first half of 2025, even as foreign arrivals stayed below pre-pandemic levels. As of end-May, tourist arrivals were recorded at 2.54 million.

Joey Roi H. Bondoc, director and head of research at Colliers, said the sector is supported by strong domestic demand and the entry of more foreign hospitality brands. However, he pointed out that the Philippines lags behind regional peers in terms of branded hotel penetration, with only 4% compared to Singapore’s 45%, Indonesia’s 10%, and Thailand’s 8%.

Analysts agreed that while challenges remain, particularly in infrastructure and connectivity, the shift toward luxury hospitality could provide developers with a viable growth path and strengthen the Philippines’ positioning in the regional tourism market.