The Philippine hotel industry remains resilient and continues to grow after the pandemic with P250 billion being invested by the private sector for the ongoing construction of new facilities.
This is according to the Philippine Accommodation Pipeline Report 2024 which was jointly launched by the Philippine Hotel Owners Association (PHOA) and Leechiu Property Consultants (LPC).
According to the report, these projects consist of 158 accommodation establishments and 40,084 rooms in development, reflecting strong confidence in Philippine tourism.
These will also create over 57,000 direct jobs associated with the operation of these new properties, underscoring the substantial economic and employment impact of these developments.
“This significant pipeline expansion highlights the commitment of developers and investors to the continued growth and robustness of the hotel industry,” the report said.
The 2024 Philippine Accommodation Pipeline Report highlights the dynamic growth of the country’s hospitality sector.
Both international and local brands are expanding rapidly, with a notable increase in projects across key areas like Metro Manila, Cebu City, and Davao, as well as emerging destinations such as Panglao, Mactan, and Palawan.
This geographic diversity reflects developers' efforts to capture the evolving demands of both leisure and business travelers.
The rise of alternative accommodation models, such as condotels, serviced apartments, and branded residences, signals a shift in market preferences.
These flexible investment options cater to both travelers seeking home-like stays and investors looking for long-term returns.
Meanwhile, the growth of resort developments in beach destinations and gaming hubs like New Clark City and Parañaque shows a broadening of the hospitality landscape.
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, catering to the high demand from tourists.
Mindanao, with 16 new accommodations and 3,138 room keys, represents eight percent of the total.
Although its current share is smaller, growth is expected as economic conditions continue on an upward trajectory. Further expansion is expected as developers seek growth markets especially for midscale and upscale properties.
Lapu-Lapu City leads the country with 4,786 keys in the pipeline across 10 projects, averaging 435 keys per accommodation. Its coastline and island attractions have attracted major developers.
Panglao Island is a top accommodation investment destination, ranking second in the country with 4,401 keys planned across 16 projects.
Boracay maintains its status as a top tourist destination in the Philippines, with 3,625 keys in the pipeline, ranking third nationwide.
In the 2024 accommodation pipeline, independent hotels make up 3,385 room keys, or 8% of the total inventory. Local brands, mainly from the country's top developers, provide 19,901 room keys, while international brands contribute 16,798 room keys.
This balance underscores the Philippines' growing attractiveness to global operators. International brands benefit from their global reach and standards, drawing interest from investors and travelers, while local brands excel with large-scale developments in master-planned communities.
Leechiu Property Consultants anticipates notable growth in properties managed by international brands and an influx of global operators, driven by the Philippines' vibrant tourism sector.
Simultaneously, local developers are expected to expand through an asset-light model, using third-party management services to grow their portfolios with lower capital expenditure.