December 1, 2024 | 12:00am
MANILA, Philippines — Local hotel developers should explore further partnerships with foreign brands amid the expected resurgence of the country’s tourism industry, according to a professional services and investment management firm.
In its latest market intelligence report, Colliers Philippines said the hospitality sector would continue to benefit from the tourism segment’s rebound and the modernization of the country’s airports.
“The improving tourism infrastructure across the country should provide opportunities for developers to expand their leisure footprint in key tourist destinations and support the Department of Tourism’s goal of attracting 12 million international tourists by 2028,” Colliers said.
Colliers recommends that local hotel developers further explore partnership with foreign brands.
“Outside Metro Manila, we see the opening of more foreign-branded hotels in major tourist destinations such as Cebu, Pampanga, Subic, Bohol and Cagayan de Oro,” it added.
It cited the recent partnership between the Primary Group of Builders (PGB) and Singaporean brand Banyan Group for the management of Maayo Hotel in Cebu under the Homm brand.
The Maayo Leisure Group comprises of the brands Maayo Hotel, Maayo Argao, Maayo San Remigio, and Circa1900. Meanwhile, Banyan Group is a global hospitality company with a portfolio of about 90 hotels and resorts, 140 spas and galleries, and 20 branded residences in over 20 countries.
In its Metro Manila hotel report for the first half, Colliers said that now is the best time for foreign brands to expand their presence in the Philippines given the planned modernization of the country’s international airports and the projected rise in international arrivals.
“The Department of Tourism is aiming to attract 7.7 million foreign visitors this year from 5.45 million in 2023 and 2.65 million in 2022. The government has also set a lofty goal of attracting 12 million international tourists by 2028. This optimism has been enticing foreign hotel operators to expand presence across the Philippines,” Colliers said.
The professional services firm highlighted that while Sofitel Philippine Plaza Manila officially closed its doors earlier this year, it is expanding its presence in key destinations such as Cebu and Clark in Pampanga.
Additionally, Accor Hotels will also be developing a 175-room Ibis Styles and 250-room Mercure Hotel in Subic, Zambales.
Similarly, Radisson Hotels also announced that they would be launching Radisson Blu in Cagayan de Oro, as well as other Radisson brands in Cebu.
Other foreign branded hotels in the pipeline will come from Sheraton, Dusit Thani, Citadines and Tryp by Wyndham.
“Colliers recommends that developers be on the lookout for upcoming convention centers and soon-to-be modernized airports outside the capital region for their hotel expansion plans,” the professional services firm said earlier.
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