Local brands anchor Metro Manila's 6,200-room hotel pipeline

These new rooms are expected to open through 2030.

Metro Manila's hotel market eased in the second quarter of 2026, with average daily rates and revenue per available room declining quarter on quarter as demand entered its typical mid-year moderation, according to JLL.

No new hotel supply entered the market during Q2, although around 3,500 rooms are expected to open across Metro Manila before the end of the year. The broader development pipeline remains substantial, with approximately 6,200 new rooms expected to open through 2030.

JLL said local hotel brands dominate the pipeline, reflecting strong confidence in the market and continued activity from foreign developers.

The average room rate in Metro Manila fell 0.7% quarter on quarter to PHP 7,976 in Q2. The decline came as the market experienced its seasonal mid-year easing, with RevPAR also declining during the period.

Looking ahead, improved regional air connectivity is expected to support tourism demand. JLL highlighted expanded Philippines-Vietnam connectivity, including Vietjet's new Cebu route and an expanded Vietnam Airlines partnership, which should increase capacity and joint tourism marketing between the two markets.

However, the incoming hotel supply could intensify competition among operators. JLL said the development pipeline demonstrates confidence in Metro Manila's tourism potential, while also pointing to the need for hotel operators to navigate a more competitive market as new rooms come online.