Manila to welcome 2,680 new hotel rooms in 2025

These will be mainly located in Makati and the Bay Area.

According to a recent Colliers report, the Philippine hospitality sector is gaining momentum, driven by infrastructure upgrades and rising international arrivals, which reached 5.95 million in 2024. Although below target, tourist spending hit a record PHP760 billion, with the country leading Southeast Asia in per-visitor expenditure. 

“For 2025, we recommend developers to explore emerging destinations and leverage the newly approved 99-year land lease law (already in advanced stages of legislation) to attract foreign brands and develop integrated leisure hubs,” the report said.

Here’s more from Colliers:

Foreign hotel brands are expanding aggressively, partnering with local developers in key and emerging markets. Notable ventures include Dusit, Wyndham, Accor, Marriott and The Ascott Group. The land lease extension and REIT integration are expected to further stimulate investment, especially in tourism-driven townships and convention facilities.

Metro Manila’s occupancy edged up to 64% in H2 2024, with ADRs rising 2.7% year-on-year. In Q1 2025, we saw stable demand for MICE facilities, especially in Makati CBD, Fort Bonifacio and the Bay Area. Four- and five-star hotels led rate growth, reflecting strong MICE and business travel demand. Room supply lagged due to construction delays, but 2025 is set to deliver 2,680 new rooms, mainly in Makati and the Bay Area. Outside the capital, occupancy surged to 70% to 80% in Clark and Cebu.

Colliers anticipates stable occupancy and a 3% ADR increase in 2025, supported by rising foreign arrivals and MICE activity. Developers are advised to align with airport infrastructure projects to identify future growth corridors and capitalise on evolving travel patterns.