Hotel developments reflect confidence in Phl tourism

The Philippine Hotel Owners Association Inc. and Leechiu Property Consultants recently released the 2024 Philippine Accommodation Pipeline Report, which provides an in-depth analysis of new accommodation establishments and commitments across the country.

- MARIANNE GO

Among the key findings of the report was that the hotel development sector remains resilient post-pandemic, with 158 accommodation establishments and 40,084 rooms in development, reflecting strong confidence in Philippine tourism.

These development projects represent P250 billion in private sector investment, which will create over 55,000 direct hotel jobs.

Mactan, Cebu and Panglao in Bohol, the report showed, were ranked as the first and second tourist destination choices, prompting the most significant accommodation development in the country. However, the report pointed out that while the Visayas is the tourism center, Luzon still leads in accommodation developments – with 85 projects and 20,116 room keys – as it focuses on business and urban properties.

Thus, Visayas placed second with 57 accommodation developments and 16,830 room keys, accounting for just 42 percent of the pipeline compared to Luzon’s 50 percent. The Visayas projects, however, focus on leisure and resort tourism in Cebu, Bohol and Boracay, catering to the high demand from tourists, which drives significant growth.

Mindanao, with 16 new accommodation developments and 3,138 room keys, accounts for just eight percent of the total projects. However, it still shows that growth is expected as economic conditions continue on an upward trajectory. Further expansion is expected as developers seek growth markets, especially for mid-scale and upscale properties.

According to the report, by the fourth quarter of this year, 3,231 new keys are set to be available from projects being developed by Citadines Paragon Davao, Radisson Red Mandaue and Ascott Double Dragon Meridian Park.