As the ninth Hospitality Philippines Conference convenes in Manila, fresh data confirms that the country's hotel sector is holding its ground despite global economic headwinds. According to Jones Lang Lasalle's June 2025 report, average occupancy across Philippine hotels reached 81.8% in the first quarter, buoyed by sustained domestic travel and steady corporate demand.
JLL analysts highlight that prime business districts are outperforming the national average. Bonifacio Global City and Makati CBD posted occupancies of 87.9% and 83.9%, respectively, driven by a mix of leisure visitors, business travellers, and corporate accounts. The luxury segment remained resilient, holding at 86% occupancy while commanding average daily rates of PHP 11,000 to PHP 12,000. Overall, average room rates dipped just 0.04% to PHP 8,034 per night, reflecting typical seasonal softening and a modest increase in supply.
Supply boom reshapes the market
The pipeline is expanding at an unprecedented pace. Leechiu Property Consultants projects more than 12,000 new hotel keys across at least 50 developments entering the market. JG Summit's hospitality arm, Robinsons Hotels and Resorts, plans to open and operate 36 new hotels by 2027, signalling confidence in long-term growth.
Developers are increasingly favouring midscale and upper-midscale properties over budget segments. This tier offers faster deployment and quicker returns while capturing the bulk of regional business trips and family travel. The shift is reshaping the competitive landscape, with established operators and new entrants alike vying for a share of this growing demand.
Beyond Manila: regional expansion takes off
While Metro Manila remains the largest hub, investors and hotel management companies are looking beyond the capital. Boracay, Cebu, Davao, and Palawan are attracting significant investment, driven by improving infrastructure and rising tourist arrivals. Local luxury brands are also expanding their footprints: Filinvest Hospitality's Crimson brand continues to perform strongly in Boracay and Cebu, while The Lind Hotels is set to open in Coron, Palawan, in the coming year.
This regional push aligns with broader trends in Asian hospitality, where secondary cities are emerging as key growth drivers. For travel professionals, this means new opportunities for partnerships and distribution in these markets.
Domestic travellers to anchor holiday season
Looking ahead to 2027, two factors will shape the sector's trajectory. First, the industry must capitalise on domestic guests, especially as the year-end holiday rush approaches. With airfares and travel costs rising, many Filipino families are opting for extended staycations, particularly multi-generational groups. Corporate entities are also using hotel stays as incentives for top employees, further supporting occupancy.
Second, holistic wellness is emerging as a key differentiator. Hotels are moving beyond standard leisure packages to incorporate health and wellness tourism. Many properties are redesigning spa and wellness amenities to include traditional healing modalities, while building marketing narratives around community-led conservation to attract higher-spending wellness travellers. This trend mirrors similar developments in other Asian markets, such as new luxury openings that blend wellness with destination appeal.
The Philippine hospitality sector's resilience is a testament to its adaptability. As domestic travel continues to surge, and with a robust pipeline of new properties, the industry is well-positioned to navigate global uncertainties. For international hoteliers and investors, the Philippines offers a compelling growth story, one that is increasingly defined by regional expansion and a focus on experience-driven travel.
