Hotel investors are committing PHP250B to add 40,084 rooms across 158 new establishments in the Philippines over the next 6-7 years, per the 2024 Leechiu report.
Hotel investors have committed approximately PHP250 billion (US$4.39 billion) to develop 158 new accommodation establishments across the Philippines over the next six to seven years. This investment will add around 40,084 new hotel rooms to the country’s existing inventory, according to the latest “2024 Philippine Accommodation Pipeline Report” released by Leechiu Property Consultants.
This ambitious expansion reflects the strong confidence of developers and investors in the growth potential of the hotel industry. The report emphasizes that the surge in new projects is closely tied to existing or upcoming casino resort developments within the country. “This significant pipeline expansion highlights the commitment of developers and investors to the continued growth and robustness of the hotel industry,” the consultancy stated.
The anticipated new hotels are expected to generate approximately 57,000 direct jobs associated with their operations, underscoring the substantial economic and employment impacts these developments will bring. As the hospitality landscape evolves, the infusion of capital and new jobs is likely to invigorate local economies.
More than half of the new hotel projects—approximately 54 percent—will be developed by the top ten hotel developers in the Philippines. Leading the construction efforts is DoubleDragon Corp, which plans to add 4,324 new rooms. This is followed by Megaworld Hotels and Resorts, which will create 3,889 keys, and Hann Philippines Inc, responsible for 2,850 hotel rooms.
Hann Philippines is particularly noteworthy, as it is the master developer behind the Hann Casino Resort. Currently, the company is also developing the Hann Reserve property, which will feature three 18-hole golf courses, luxury hotels, villas, and residential units. The Hann Reserve is making strides in the luxury segment, with the recent groundbreaking of a Banyan Tree-branded hotel in December and a planned 250-room InterContinental-branded hotel announced in July.
The report indicates that the 2024 accommodation pipeline will see local brands contributing 19,901 hotel rooms, while international brands will provide 16,798 room keys. This balance illustrates the Philippines’ growing appeal to global operators looking to tap into the burgeoning tourism sector. “This underscores the Philippines’ growing attractiveness to global operators,” Leechiu Property Consultants was quoted as saying in report published by GGRAsia.
The consultancy predicts a notable increase in properties managed by international brands, spurred by the vibrant tourism landscape. From late 2024 through the end of 2025, the Philippines is set to welcome nearly 11,400 new hotel rooms, predominantly concentrated in the National Capital Region and Cebu province.
Parañaque, particularly the Manila Bay Area, is witnessing significant interest from major local developers, driven by the thriving gaming industry. With 2,863 keys in the pipeline, Parañaque leads Metro Manila in new hotel room developments and ranks fifth nationwide. Notable upcoming projects in the area include Westside City Resorts by Suntrust Resort Holdings, Hotel Okura Manila Bayshore, and Banyan Tree Manila Bay.
The Westside City project is being developed in partnership between the Philippine conglomerate Alliance Global Group Inc and Suntrust Resort, a subsidiary of Hong Kong-listed casino investor firm LET Group Holdings Ltd. The venue is anticipated to commence operations in the first quarter of 2025, further adding to the competitive landscape of luxury accommodations in the area.
In Cebu City, the demand for new hotel rooms is equally robust. The city ranks fifth nationwide for new developments, which include a second hotel at the NUSTAR Resort and Casino. Recently, Robinsons Land Corp announced plans to invest over PHP10 billion in hospitality projects, which will feature an “ultra-luxury” NUSTAR-branded hotel as part of its ongoing investment in the Cebu tourism complex.
In the 2024 accommodation landscape, independent hotels account for 3,385 rooms, representing 8% of the overall inventory. Local brands, primarily from leading national developers, offer 19,901 hotel rooms, while international brands add 16,798 rooms to the mix.
The influx of investment and the introduction of new hotels reflect the Philippines’ potential as a major player in the hospitality industry. With a burgeoning tourism sector and an array of new developments linked to casino resorts, the future appears bright for hotel investors, developers, and the local economy.
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