Hotel investors have pledged circa PHP250.0 billion (US$4.39 billion) to develop 158 new accommodation establishments in the Philippines in the next six to seven years.
The investment will represent an additional “40,084 new room keys” relative to the existing national inventory, stated Leechiu Property Consultants in its “2024 Philippine Accommodation Pipeline Report”.
According to the consultancy, a number of these new projects is linked to existing or soon-to-open casino resort projects in the country.
“This significant pipeline expansion highlights the commitment of developers and investors to the continued growth and robustness of the hotel industry,” stated the consultancy in the report published this week.
“This expansion is expected to generate approximately 57,000 direct jobs associated with the operation of these new properties, underscoring the substantial economic and employment impact of these developments,” it added.
According to Leechiu Property Consultants, more than half – or circa 54 percent – of the national pipeline will be built by the top-10 hotel developers in the Philippines.
Construction will be led by DoubleDragon Corp, with 4,324 rooms, followed by Megaworld Hotels and Resorts, creating 3,889 keys; and Hann Philippines Inc, with 2,850 hotel rooms.
Hann Philippines, the master entity behind the Hann Casino Resort, is currently developing the Hann Reserve property. The luxury development will feature three 18-hole courses, several upmarket hotels, villas, and “residences”, according to its promoter.
In December, a Banyan Tree-branded hotel broke ground at the site of Hann Reserve, and, in July, Hann Philippines announced that the scheme will also feature a 250-room InterContinental-branded hotel.
The report notes that in the 2024 accommodation pipeline, local brands, mainly from the country’s top developers, provide 19,901 hotel rooms, while international brands contribute 16,798 room keys.
“This balance underscores the Philippines’ growing attractiveness to global operators,” stated the consultancy.
Leechiu Property Consultants said it anticipates “notable growth in properties managed by international brands and an influx of global operators, driven by the Philippines’ vibrant tourism sector”.
Between the final quarter of 2024 and the end of 2025, the Philippines is set to welcome nearly 11,400 new rooms, with the majority located in the National Capital Region and Cebu province.
Parañaque, specifically the Manila Bay Area, “has attracted significant interest from major local developers,” as the country’s “gaming industry thrives”.
“With 2,863 keys in the pipeline, Parañaque leads Metro Manila and ranks fifth nationwide in terms of new hotel rooms,” said the report.
“Notable upcoming projects include the Westside City Resorts by Suntrust Resort Holdings, Hotel Okura Manila Bayshore, and Banyan Tree Manila Bay [pictured in a rendering],” it added.
The hotel casino project at Westside City is being developed in partnership between Philippine conglomerate Alliance Global Group Inc and Suntrust Resort, the latter a subsidiary of Hong Kong-listed casino investor firm LET Group Holdings Ltd. The venue is scheduled to commence operations in the first quarter of 2025.
Cebu City ranks fifth nationwide in terms of new hotel rooms, which includes a second hotel at the NUSTAR Resort and Casino.
Philippine conglomerate Robinsons Land Corp said last week that it would add an “ultra-luxury” NUSTAR-branded hotel to its Cebu tourism complex, as part of plans to invest more than PHP10 billion “over the next few years” in hospitality projects.
