Philippine hotel industry seen to post growth in next 5 yrs

MANILA, Philippines - The country’s hotel industry is expected to see a continued growth in the next five years amid the decline in hotel occupancy rates in the first half, according to the latest Market Insight report of Pinnacle Real Estate Consulting Services Inc.

The consultancy firm said hotel occupancy rates in Manila slipped to an average of 68 percent in the first half, 1.6 percentage points lower than the rates a year ago but still better than in other countries.

“Even with this slight decrease, the Philippines is actually doing better than most countries in Southeast Asia where drops ranged from 2.1 percentage points (Singapore) to as high as 8.6 percentage points (Bali). Only Thailand and Vietnam bucked the trend with slight increase in occupancy,” Pinnacle said.

Despite the slowdown, Pinnacle said industry players continue to pursue their respective expansion projects.

For instance, Pinnacle said the Filinvest Group is beefing up its hotel portfolio and expects to reach 5,000 keys by 2020 from 1,063 keys at present in Alabang and Cebu.

The Filinvest Group’s Chroma Hospitality, which offers hotel management services, meanwhile, is pouring in P2.6 billion  for a 228-room Canvas Hotel in Cubao and a 185-room Canvas Hotel in Mactan.

“Filinvest is bringing to the market a Crimson Hotel in Boracay; Quest Hotels in Dumaguete and Tagaytay; Canvas Hotels and Resorts in Cubao, Mactan and Cebu City; and a Serulyan condotel in Mactan. These hotels will open between 2018 and 2019,” Pinnacle said.

Chroma Hospitality is looking to expand in Pasig and Quezon City as well as in other provincial areas such as Batangas, Cavite, Laoag, Baguio, Cebu and Davao, the report also said.

Another top player, Ayala Land has plans to put up Seda hotels across the country in the next five years on top of the four Seda Hotels located in  Bonifacio Global City, Cagayan de Oro City, Davao City and Sta. Rosa, Laguna.

“The target opening of the on-going developments with nearly 2,000 hotel rooms will be from 2016 to 2018. Under its Vision 2020, the Ayala Group plans to achieve a portfolio of 6,000 hotel and resort keys,” Pinnacle said in a report.

Another player that is also seen expanding in the next five years is Red Planet, formerly Tune Hotel.

The rebranded hotel has 10 hotels and is targeting to have 20 hotels in the Philippines in five years.