Philippines to Welcome 40,000 New Hotel Rooms by 2026

The Philippines is on the cusp of a major transformation in its tourism and hospitality sector with the addition of over 40,000 new hotel rooms by 2026, according to a recent report by Leechiu Property Consultants (LPC). This ambitious expansion plan highlights the country’s intention to enhance its reputation as a premier travel destination. The surge in accommodation projects is strategically aimed at boosting tourism and creating new jobs.

Nelson Moura reports that the private sector hotel developers have announced 158 new accommodation projects which will collectively add 40,084 rooms across various regions of the Philippines. These developments come as part of efforts to recover foreign arrival numbers post-pandemic and are aligned with the government’s initiative to improve the country’s airport infrastructure. This expansion is expected to generate significant investments totaling approximately PHP250 billion, or $4.3 billion, while creating around 57,000 jobs in the hotel industry.

In regional investments, Luzon leads with 50 percent of the national pipeline, driven by projects in Clark and the National Capital Region (NCR), adding over 8,000 keys. Meanwhile, the Visayas region contributes 42 percent, catered mainly to leisure tourism with projects on islands like Boracay, Mactan, and Panglao. Mindanao, particularly cities such as Davao, Cagayan de Oro, and Siargao, accounts for the remaining 8 percent.

The Metro Manila area, notably Parañaque City, is set to experience a flurry of hotel openings, featuring notable developments such as Banyan Tree Manila Bay, Hotel Okura Manila Bay, and the city’s fourth integrated casino complex, Westside City Resorts. This project’s developer, Suntrust Holdings, is also actively moving forward with their plans as they recently appointed a contractor for the Westside City Project.

In the bustling city of Makati, Ayala Land Hotels and Resorts Corp is spearheading new developments, while in Quezon City, local brands are playing a crucial role with hotels like Fili Hotel – Bridgetown and Hotel 101 Libis leading the charge. These developments are a testament to the diverse approach in hotel investments, with alternative ownership models such as condotels being utilized to enhance cash flow during the construction phase.

As developers target prime locations known for robust tourism demands, the focus remains on upper midscale and upper upscale hotels, catering to both premium leisure and business travelers. With this extensive pipeline and strategic planning, the Philippine hospitality sector is poised for a remarkable transformation, positioning the nation as an even more attractive destination for international and domestic tourists alike.