Data collected for the first time by estate services giant Leechiu Property Consultants (LPC) revealed that real estate developers have ongoing plans to build 158 new hotels and create 57,000 direct jobs over the next six to seven years.
This expansion will add 40,000 more rooms, boosting capacity by 18 percent, to meet the rising demand in the tourism sector, said Alfred Lay, director of hotels, tourism, and leisure at LPC.
“We’ve never seen a pipeline quite this large,” Lay said in a media briefing on Tuesday.
Hotel tycoons
DoubleDragon Corp., founded by Edgar 'Injap' Sia and Jollibee Group founder Tony Tan Caktiong, is leading the charge in building new hotels with 4,324 new projects in the pipeline, LPC data showed.
Close behind is Kevin Tan-led Megaworld Hotels and Resorts, which is building 3,889 rooms.
“Developers are targeting key locations like resort and casino destinations, to capitalize on strong tourism demand,” LPC said.
Global hotel brands
International hotel groups are also making significant investments in the Philippines.
Top players are Accor, with 3,422 rooms, Ascott (3,000 rooms), Radisson Hotels (2,988 rooms), Marriott International (2,771 rooms), and Dusit International (812 rooms).
“International brands have a high market penetration in the Philippines with 42 percent of all keys under development,” LPC said.
“Branded residences will feature heavily in the coming years,” it added.
Luzon takes 50%
New hotel developments are focused in Luzon, accounting for half of the new rooms or 20,116 keys. Visayas accounts for 42 percent, or 18,830 keys, and Mindanao, 3,138 keys.
Parañaque is the top location for new hotels.
According to LPC, Parañaque City’s hotel supply will grow with the openings of Banyan Tree Manila Bay, Hotel Okura Manila Bay, and Westside City Resorts, the fourth integrated casino complex.
In Makati, Ayala Land Hotels and Resorts Corp leads key development, with Ascott handling the rest.
In Quezon City, 70 percent of new rooms will come from local brands like Fil Hotel - Bridgetowne and Hotel 101 Libis.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
