With home sales under pressure, the property giant is making better use of its existing assets through renovations aimed at attracting tenants, supporting higher rents and improving returns without having to build entirely new developments.
Its four renovated flagship malls are now earning 13 percent more revenue for every square meter of space, while upgraded hotels are charging 19 percent more for rooms, Ayala Land said in a statement on Wednesday.
Making existing properties work harder
The renovations cover major shopping destinations including Glorietta, Greenbelt, TriNoma and Ayala Center Cebu, where upgrades form part of Ayala Land's effort to improve the performance of established properties.
Malls, offices and hotels now contribute 55 percent of the company's operating earnings, up from 44 percent a year earlier, marking a shift away from its traditional reliance on property development.
Colliers Philippines research director Joey Bondoc earlier noted that mall developers are stepping up reinvention efforts, with 26 redevelopment projects planned through 2030 to attract shoppers amid tighter consumer spending.
A cushion against weak home sales
The growing contribution comes as residential sales reservations fell 25 percent in the first nine months of 2026, making regular income from rents and hotel operations increasingly important.
Leasing and hospitality revenues grew 8 percent to P37.8 billion during the period, while shopping mall revenues reached P18.2 billion, up 4 percent on a reported basis but 10 percent after excluding the effects of asset sales in the previous year.
Hotels command better rates
Hotels and resorts delivered faster growth, with revenues climbing 20 percent to P8.9 billion as upgraded properties commanded higher room rates.
Ayala Land is also expanding its hospitality portfolio with the new Mandarin Oriental Makati, scheduled to open on Dec. 14, while preparing to add nearly 200,000 square meters of retail space by year-end.
The combination of renovations and new developments is helping Ayala Land build a larger base of recurring income as weak residential demand continues to weigh on its traditional property sales business.
—Edited by Miguel R. Camus
