Foreign Hotel Brands to Dominate New Supply in Metro Manila Despite Drop in Tourist Arrivals

Strategic Insights -

Foreign hotel brands are expected to make up the majority of new supply in the Metro Manila hospitality sector, with Colliers Philippines forecasting that they will account for 56 percent of new room supply from 2025 to 2027. This is an improvement from their previous projection of 42 percent. The growth in foreign hotel brands is attributed to the country's potential for growth in the travel and tourism sector, despite a drop in foreign tourist arrivals due to a 19-percent slip in South Korean tourist arrivals.

Key Takeaways:

  • Foreign hotel brands are expected to dominate new supply in Metro Manila, accounting for 56 percent of new room supply from 2025 to 2027.
  • Domestic tourism expenditure grew by 16.4 percent to P3.1 trillion last year, making up for the decline in foreign tourist arrivals.
  • Hotel occupancy in Metro Manila remains stable at 64 percent, despite the drop in foreign tourist arrivals, thanks to high demand for meetings, incentives, conferences, and exhibitions.
  • International arrivals are still not at pre-pandemic levels, with occupancy expected to end at between 60 and 65 percent for the full year.
  • Room completion this year is expected to be lower than initially estimated, with only 1,100 rooms projected to be completed, down from 2,700 rooms due to construction delays.
  • Upcoming hotel completions include Ascott DD Meridian Park, Dusit Greenhills Manila, Mandarin Oriental, Canopy by Hilton, and Moxy Hotels Circuit, among others.
  • The Philippines is unlikely to breach the 7.7 million government target for tourist arrivals this year, with foreign tourist arrivals reaching 2.54 million in the first five months, down 1.2 percent from the same period last year.

Statistics:

  • Foreign hotel brands accounting for 56 percent of new room supply from 2025 to 2027 (Colliers Philippines).
  • Domestic tourism expenditure grew by 16.4 percent to P3.1 trillion last year (Department of Tourism).
  • Hotel occupancy in Metro Manila remains at 64 percent (Colliers Philippines).
  • International arrivals are expected to end at between 60 and 65 percent for the full year (Colliers Philippines).
  • 1,100 rooms projected to be completed this year, down from 2,700 rooms due to construction delays (Colliers Philippines).
  • Foreign tourist arrivals reached 2.54 million in the first five months, down 1.2 percent from the same period last year (Department of Tourism).

Sources:

  • "Foreign hotel brands dominate new supply in Metro Manila" (Colliers Philippines).
  • "Domestic tourism expenditure grows 16.4% to P3.1 trillion" (Department of Tourism).
  • "Hotel occupancy remains stable at 64% in Metro Manila" (Colliers Philippines).