More Philippines Hotels to Add 12,900 New Rooms
A total of 12,900 new hotel rooms will open over the next three years as property developers aggressively invest in the hotel and leisure sector to serve foreign tourists who are expected to reach 10 million by 2016.
Colliers International Philippines Research Analyst Romeo Arahan Jr. said more than 4,000 new hotel rooms are expected to be delivered annually from 2014 to 2016. This would represent the highest number of delivered units since 1988.
"As the government strives to reach its foreign tourist arrivals target of 10 million in 2016, local real estate firms are entering into the hotel and leisure sector to augment the accommodation needs of foreign travelers," Mr. Arahan said.
Mr. Arahan said for 2014, around 4,120 new hotels rooms would be made available, of which 40 percent would open within Pagcor-sponsored Entertainment City. These would include 920 hotel rooms in the City of Dreams Manila, the casino project of Melco Crown Philippines.
He said in the Mall of Asia complex in Pasay City, the 500-room Radission Hotel and the 204-room Tune Hotels are also slated to open this year.
Jin Jiang International Hotels, one of the leading hotel groups in China, is also scheduled to turn over two hotel projects this year, including Jin Jiang Inn Ortigas, a 95-room hotel located beside Richmonde Hotel and Jin Jiang Inn Greenbelt, a 70-room hotel located across New World Hotel in Makati.
Robinsons Land Corp., the property unit of the Gokongwei group, also aims to expand its portfolio of hotel rooms to 1,200 with the opening of three Go-Hotels in Ortigas, Butuan and Iloilo.
Other property developers with ongoing hotel projects are Sy-led SM Hotels and Conventions Corp., which plans to build another Park Inn by Radission Hotel in Clark, Pampanga. Ayala Land Inc. also plans to build hotels within its mixed-use developments in Vertis North in Quezon City and Circuit City in Makati.
Mr. Arahan said room rates in Metro Manila are rising because of the growing interest in the Philippines as a tourist destination and business investment option. Average five-star room rates increased by 3.7 percent in the second half of 2013 to $333 per night compared to the rates in the first half of 2013.
Room rates for four-star hotel rooms also rose 1.1 percent to US$273 per night while rates for three-star hotels improved 9.5 percent to US$161 a night. "This can be attributed to the increasing local and foreign tourists seeking accommodations at an affordable price," Mr. Arahan said.