Private sector hotel developers have committed to 158 new accommodation projects across the Philippines, adding a total of 40,084 rooms, according to the latest market report by Leechiu Property Consultants (LPC)
LPC projects that the Philippines will exceed its foreign arrival numbers for 2023, but it is still expected to fall short of the ambitious target of 7.7 million arrivals. LPC forecasts a complete recovery in foreign arrivals by 2026.
This expansion is anticipated to generate approximately PHP250 billion ($4.3 billion) in investments and create around 57,000 jobs in the hotel industry. The report also highlights the government’s intensified focus on enhancing airport infrastructure, with major hotels and tourism destination airports currently being bid out.
In terms of regional developments, Luzon accounts for 50 percent of the national pipeline, with notable projects in Clark, which will add 2,098 keys, and over 8,000 keys in the National Capital Region (NCR).
The Visayas region represents 42 percent of new projects, largely driven by leisure tourism in destinations such as Boracay, Mactan Island, and Panglao Island. Mindanao holds 8 percent of the pipeline, with significant contributions from Davao City, Cagayan de Oro City, and Siargao.
In Metro Manila, Parañaque City is set to lead with an influx of new hotel keys. Upcoming openings include Banyan Tree Manila Bay, Hotel Okura Manila Bay, and the city’s fourth integrated casino complex, Westside City Resorts.
In Makati, Ayala Land Hotels and Resorts Corp is leading the majority of new developments, while Ascott will manage the remaining inventory. Quezon City is expected to see 70 percent of its pipeline keys supplied by local brands, including Fili Hotel – Bridgetown and Hotel 101 Libis.
The top 10 hotel developers will account for 54 percent of the national pipeline keys, with 55 percent of these projects utilizing alternative ownership models, such as condotels, to enhance cash flow during development.
Developers are strategically targeting prime locations, particularly resort and casino destinations, to capitalize on robust tourism demand. The pipeline is focusing on upper midscale and upper upscale hotels, catering to both premium leisure and business travelers.
