Manila hotel sector may expand by nearly 2,900 keys this year — Colliers

METRO MANILA is set to add 2,890 hotel keys in 2026, with most of the new rooms concentrated in Makati and the Bay Area, according to Colliers Philippines.

In its Second-Half (H2 2025) Metro Manila Hotel Report, Colliers projected that over two-thirds of the new supply this year will come from hotels in the Makati central business district and the Bay Area.

“The Philippines recorded dismal aggregate international arrivals in 2025. The country has yet to recover pre-covid visitors. Despite this, domestic travelers continue to drive take-up for hotels and MICE (meetings, incentives, conferences, and events) facilities across the country,” Joey Roi H. Bondoc, director and head of research at Colliers Philippines, said in the report.

From 2026 to 2029, Colliers projects 1,800 rooms to be delivered annually. About 52% of the new supply in Metro Manila during this period will come from foreign hospitality brands such as Mandarin, Dusit, Canopy, and Moxy.

Colliers expects hotel occupancy this year to reach around 60%, amid the addition of new rooms and limited international arrivals.

The consultancy noted that the Philippines’ tourist arrivals remain “disappointingly low,” as neighboring countries such as Vietnam and Malaysia have exceeded their pre-pandemic visitor levels.

Tourist arrivals in the Philippines reached 6.48 million in 2025, according to the Bureau of Immigration, below the pre-pandemic level of 8.26 million in 2019.

The country has faced challenges in attracting international visitors compared with regional peers, amid congested airports, limited inter-island connectivity, and underdeveloped transport infrastructure.

Domestic travelers continue to influence hotel occupancy and daily rates, particularly in Metro Manila, Cebu, Cagayan de Oro, Davao, and Clark, Pampanga.

The hosting of the ASEAN Summit this year is expected to support the country as a MICE destination, Colliers added.

In-person events such as pharmaceutical product launches, property exhibits, bridal fairs, technology trade shows, and travel and tourism expos can further support MICE and accommodation demand, the report said.

“In our view, the government should focus on expanding and diversifying the Philippines’ leisure demand base, with some countries from Europe and the Middle East being the ‘low-hanging fruits,’” Colliers said.

Hotel operators are advised to target long-haul and high-spending tourists, noting that new international flights have been introduced from countries such as Russia, Palau, Canada, and India.

Developers are encouraged to consider an “asset-light strategy” for hotel expansion, Colliers said.

“This model allows foreign brands to enter into management or franchise contracts with local developers, reducing capital expenditure while providing stable, predictable returns for property owners, creating a mutually beneficial arrangement for both parties,” it said.

Hotel joint ventures that have adopted the “asset-light” model include partnerships between The Ascott Limited and DoubleDragon Corp., and between Ayala Land Hospitality with Marriott International, Inc. and Hilton Worldwide Holdings, Inc.

Developers should also take advantage of new policies that could support tourism growth, including the issuance of digital nomad visas, the Cruise Visa Waiver Program, and visa-free entry for Indian and Chinese tourists, Colliers said. — Beatriz Marie D. Cruz