More than 40,000 hotel rooms set to open in the Philippines

More than 40,000 hotel rooms are set to open in the Philippines by 2028, according to a new report. This significant pipeline expansion reflects a growing investor confidence in the country’s hospitality sector.

The 2024 Philippine Accommodation Pipeline Report highlights a surge in hotel development projects nationwide. A total of 158 new accommodations are planned, adding 40,084 rooms to the existing inventory. These projects represent a combined investment of P250 billion and are expected to create about 57,000 jobs.

Both international and local brands are expanding rapidly, with a notable increase in projects in key areas like Metro Manila, Cebu City, and Davao, as well as emerging destinations such as Panglao, Mactan, and Palawan. The rise of alternative accommodation models, such as condotels and serviced apartments, signals a shift in market preferences.

While the outlook is positive, developers and investors must remain aware of challenges, including political and regulatory uncertainties. However, the strong pipeline and diversification of hotel offerings position the industry for sustained growth.

Luzon, the country’s economic hub, leads with 85 new accommodations and 20,116 room keys, contributing 50 percent of the total. Despite Visayas being the tourism center, Luzon still dominates due to its focus on business and urban properties.

The Visayas follows with 57 accommodations and 16,830 room keys, accounting for 42 percent of the pipeline. While it has fewer developments than Luzon, its focus on leisure and resort tourism in destinations like Cebu, Bohol, and Boracay drives significant growth.

Mindanao, with 16 new accommodations and 3,138 room keys, represents 8 percent of the total. Although its current share is smaller, growth is expected as economic conditions continue to improve.

The Philippines is set to welcome 3,231 new hotel rooms in the fourth quarter of 2024, including significant projects from Cebu Landmasters and Ascott.

A total of 8,168 keys are expected to open in 2025, with the majority located in the National Capital Region and Cebu Province. Notable projects include the Crown Regency Grand Paradise Resort in Bohol and the Westside City Resorts project.

Another 9,110 keys will be added to the market in 2026, featuring developments in Central Luzon such as the Mercure Subic Hotel, ibis Styles Subic, and Wyndham Garden Hotel. A significant portion of the new keys will be located in beach destinations.

A decline in new hotel openings is anticipated in 2027, with 3,834 keys expected. SM Hotels and Convention Centers will open two new Park Inn by Radisson hotels in Luzon, while Marriott plans to open hotels in Panglao and Mactan.

The Philippines aims to achieve 12 million foreign tourist arrivals by 2028, supported by the opening of 8,969 keys across the country, 46% of which will be from international hotel brands.

About 6,772 keys are projected to open from 2029 onwards, though many projects are still in the planning stages with opening dates yet to be determined.