The Philippines Hotel Investment Market
International Arrivals & Receipts (US$ B)
Arrivals are expected to increase by nearly 16% in 2010
International Visitors in 2010
In 2009 there were 91,000 visitors from the United Kingdom
Reasons for Visiting
The share of leisure travelers is likely to increase with the opening of new resorts in key destinations
What’s the Attraction?
Beaches Diving Bird-watching
Festivals Retirement
Medical Tourism
Domestic Tourism Explosion
Domestic visitor numbers to increase by 19.1% in 2010
Most Popular Destinations
Baguio/Banaue- .73 M
Manila- 1.44 M
Puerto Galera- .50 M
Boracay- .65 M
Camarines Sur- 1.23 M
Cebu- 1.61 M
Bohol- .32 M
Davao- .70 M
Domestic Airline Growth
Metro Manila Hotel Occupancy Rates
For the first 6 months of 2010, De Luxe hotel occupancy rate is up 8.35% to 71.5%
Business Process Outsourcing Expansion
Growth in Office Space in Metro Manila
Metro Manila Hotel Room Inventory
New Hotels in Emerging Business Districts
Eastwood Richmonde Hotel (2010)
138 Rooms
Alabang Bellevue Hotel (2003/09)
470 Rooms
Entrata Hotel (2011)420 Rooms
Leading Philippine Hotel Developers
Leading Philippine Hotel Developers
International Brands in the Philippines
Branded Resort Projects in the Pipeline
Banyan Tree integrated resort being developed in Coron, Palawan
600 total keys, 3 spas, marina and town centre
Six Senses Resort planned for Hermana Mayor Island, Zambales
Luxury Villas already reserved by celebrities
Resort Residential and Condohotel Market
Driven by expatriates living in Manila and HK, overseas Filipinos and a domestic market that is familiar with the condohotel model.
Summary The major listed developers are actively increasing
investment in the hotel market. Some are rolling out their own brands.
Top-end hotel projects are being funded as components of mixed-use developments or cross financed by residential / condohotel sales
Business activity is dispersing to the suburbs and provinces and new resort destinations are springing up
Need direct flights from the U.K. and Europe plus improvement of airports
Investment constrained by restrictions on foreign ownership of land and Illiquid investment market but IPOs and REITS are exit opportunities
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