Ayala Land acquires New World Makati Hotel

MANILA, Philippines — Ayala Land Inc. has acquired the iconic New World Makati Hotel in a bid to expand its hospitality portfolio in Metro Manila's central business district.

One of the Philippines’ largest property developers, Ayala Land already owns several hotels in Metro Manila’s financial hub, including Fairmont, Holiday Inn & Suites and Seda Hotel.

Established in the 1990s, the 25-storey New World Makati Hotel is considered a luxury property, offering 578 guestrooms and suites across its five-star superior, deluxe and premier rooms.

The hotel sits close to premier malls, dining, service and entertainment establishments such as at Greenbelt and Glorietta malls. 

Financial setbacks. New World Makati Hotel was formerly owned by New World Development Co. Ltd., a Hong Kong-based developer that reportedly came under financial strain in 2024 amid mounting debt and liquidity pressures, on top of a downturn in property prices and market conditions.

Bloomberg reported on Monday that the firm recently secured a HK$88.2 billion loan (~P632 billion), after it carried liabilities totaling HK$210.9 billion (P~1.5 trillion).

Expansion plans. In March, Ayala Land unveiled a $500 million expansion plan (~P28 million) to grow its hotels portfolio from 4,000 to 7,500 by 2030, financed through a combination of debt and equity.

“This move reflects our continued focus on offering a cohesive and high-quality guest experience across key locations,” Ayala Land Hospitality CEO and President George Aquino said in a June 30 statement. 

“The addition of New World Hotel Makati complements our existing portfolio and reinforces our commitment to serving evolving customer needs in one of the country’s most dynamic cities,” he added. 

Continuity. Ayala Land said that despite the acquisition, operations at New World Makati Hotel will not be disrupted. All existing staff will be retained and current bookings will be honored.

“ALH (Ayala Land Hospitality) assures guests and partners a smooth transition, maintaining the high standards of service the brand is known for. Business continuity will be maintained across all touchpoints,” the firm said. 

Although Ayala Land Inc. bought out the hotel, the company’s more specialized unit, Ayala Land Hospitality, is responsible for its hotel and resort developments.

Ayala Land’s reach also goes beyond hospitality, with holdings across residential communities, commercial centers, retail spaces and tourism estates. The property giant is also developing the 276-room Mandarin Oriental Makati, set to open in 2026.

Growth. Ayala Land Inc. had its best financial performance yet after it posted consolidated revenues at P180.7 billion in 2024, marking a 21% increase year-on-year. Meanwhile, its net income rose to P28.2 billion, up by 15% from 2023.