MANILA, Philippines — Sheraton Manila Hotel in Pasay City, which is under the Marriott brand, expects occupancy to continue to improve as the country’s economy remains open.
“Occupancy-wise, I think we’re getting there. We can be busier. But the good thing is it’s actually starting to come,”Sheraton Manila general manager Anna Vergara told reporters in an interview.
Without disclosing current average occupancy rates, Vergara said the hotel is doing a lot better than last year.
“Compared to last year, we are a lot better. A lot of establishments were allowed to operate 100 percent. So we are good with that compared to last year, which was very limited,” Vergara said, explaining that the hotel would open and close, depending on the alert level classification imposed.
“But now, hopefully, even with the surge of whatever variant we have, we are able to continue operating and that is being observed as we speak,” she said.
Vergara explained that the biggest opportunity right now for the hotel is focusing more on the local market.
As the country approaches the last few months of the year, Vergara expects the hotel’s occupancy to rise toward the holiday season.
“Yes. We had a glimpse of that last year. Remember, the government opened the economy,” Vergara said.
“So the potential is there.The market is dying to go out. So I think the market is ready, while the hotels have always been ready. So it will definitely be better this coming season.”
Latest figures from Colliers Philippines showed that Metro Manila average hotel occupancy reached 47 percent from January to June, higher than the 44 percent occupancy in the same period last year.
“We attribute the improvement to the gradual return of business travel especially among investors conducting due diligence; local guests’ growing propensity to spend on leisure, likely supported by a rise in demand from the staycation market in April to June; and a slight rebound in foreign arrivals due to relaxation of entry restriction,” Colliers said.
Colliers projects Metro Manila hotel occupancy will hover above 50 percent by the end of 2022, supported by holiday-induced spending and the return of Filipinos working abroad.
“The Philippines is starting to lure tourists back to its shores. We are seeing a rise in foreign arrivals while improving consumer confidence is propelling the domestic market. Higher-than-expected economic growth in Q1 2022 and further easing of travel restrictions should support the sector’s recovery beyond 2022,” Colliers Philippines associate director for research Joey Roi Bondoc said.
“However, hotel operators should be mindful of the offsetting impacts of rising inflation and peso depreciation,” he said.