Philippine hotel expansion to boost tourism

Philippine hospitality is poised for significant growth with developers investing P250 billion in 158 new accommodation projects nationwide. These projects will add 40,084 rooms to the market and create 57,000 direct hotel jobs.

The 2024 Philippine Accommodation Pipeline Report, a joint effort by the Philippine Hotel Owners Association (PHOA) and Leechiu Property Consultants, Inc. (LPC), outlines major expansions in Luzon, Visayas, and Mindanao.

"With P250 billion in private sector investments and the government's focus on airport infrastructure, tourism is emerging as a key pillar of the national economy," said Alfred Lay, director of hotels, tourism, and leisure at LPC.

Luzon will account for half of the new accommodation projects, with over 8,000 rooms in Metro Manila alone. The Visayas region follows closely, with 42% of the pipeline driven by leisure destinations like Boracay, Mactan Island, and Panglao Island. Mindanao will see significant developments in Davao City, Cagayan de Oro, and Siargao.

Parañaque City leads Metro Manila with 2,863 upcoming rooms, spearheaded by Westside City Resorts. Quezon City ranks second, with 70% of its new supply coming from local brands. Makati follows, with Ayala Land Hotels & Resorts developing 62% of its new inventory, while 38% will be operated by Ascott.

Major developers account for 54% of the total pipeline, contributing 21,723 rooms. Top developers include DoubleDragon Corporation, Megaworld Hotels and Resorts, Hann Philippines, Inc., The Henann Group, and Anchor Land Holdings. Key destinations like Metro Manila, Boracay, Lapu-Lapu City, San Vicente, and Clark will benefit from these expansions.

The leading developers' projects focus on upper midscale (3,860 rooms) and upscale properties (5,713 rooms), catering to premium leisure and business travelers. Condotels and alternative ownership models make up 55% of their pipelines, with key resort and casino hubs attracting considerable investment.

International brands account for 42% of the new rooms under development. Leading global operators like Accor, Ascott, Radisson Hotels, Marriott International, and Dusit International are working with local developers to deliver upper midscale hotels. Branded residences are also gaining traction, with standout projects like JW Marriott Panglao and Banyan Tree in Clark and Manila Bay.

This large-scale expansion underscores the growing confidence in the Philippine tourism sector and the country's position as a key destination for both leisure and business travel. The combination of local expertise and international brand partnerships is set to elevate the country's hospitality offerings, providing robust growth opportunities for years to come.