With the ninth Hospitality Philippines Conference (HPC) kicking off today, 9th September, we take a closer look at how well the Philippine hospitality sector has fared in the face of an ongoing global crisis.
If we go by the June 2025 report issued by Jones Lang Lasalle, the country’s hospitality scene maintained its momentum throughout the first quarter of this year with an occupancy rate of 81.8 percent.
According to JLL analysts: “Prime districts led the market during the quarter. Bonifacio Global City and Makati CBD achieved 87.9 percent and 83.9 percent occupancy, respectively, driven by leisure, business travellers, and corporate demand. The luxury segment showed stability, maintaining strong 86 percent occupancy while commanding premium rates of PHP 11,000 to PHP 12,000 per night.”
It should likewise be noted that average hotel room rates across the market declined by a slight 0.04 percent to PHP 8,034 per room per night, reflecting seasonal softening and the modest supply expansion.
At the same time, corporate accounts, MICE activities, and domestic leisure travellers continued to support occupancy levels, and business travel showed consistent strength in core commercial districts.
An undeniable influx
Experts also see an unprecedented boom in the number of available rooms offered by accommodation providers.
A report issued by Leechiu Property Consultants forecast more than 12,000 new hotel keys across at least 50 new developments as the industry enters the new year.
Indeed, a number of key players in the industry like JG Summit’s hospitality arm Robinsons Hotels and Resorts are poised to expand their portfolios in 2027 as that particular brand is due to open and operate 36 new hotels.
At the same time, developers are significantly favouring midscale and upper-midscale properties over standard budget segments.
This is because the tier offers faster deployment and quicker returns whilst capturing the bulk of regional business trips and family travel.
Beyond the capital
The ongoing hospitality boom also means developers and hotel management companies are seeking beyond Manila for potential growth areas.
While Metro Manila remains the largest hub for Philippine hospitality, a growing number of investments are being infused into developments in Boracay, Cebu, Davao, and Palawan.
We also need to point out that local luxury brands are making their presence known: Filinvest Hospitality’s Crimson brand remains strong in Boracay and Cebu, while The Lind Hotels is expanding its footprint into Coron, Palawan in the coming year.
Points to consider in 2027
There are two key points of consideration with regard to the growth of Philippine hospitality in the coming year.
First of all, the hospitality sector needs to capitalise on domestic guests, especially at this point in time as we are now nearing the country’s year-end holiday rush whose impact will carry over well into January 2027.
Thanks to the increasing price of airfare and travel expenses, many Filipino families are contemplating longer staycations for the holiday season, particularly involving multi-generational groups, as well as corporate entities offering hotel stays as incentives for top employees.
Holistic wellness is the second point of consideration as hotels go beyond standard leisure-centric packages into health and wellness tourism.
Indeed, many Philippine hotels are redesigning spa and wellness amenities to incorporate traditional healing modalities whilst building marketing narratives around community-led conservation to capture higher-spending wellness travellers.
