Around 3,000 new rooms to enter Manila’s hotel market in H2 2025

This could temporarily apply pressure on occupancy rates.

According to a JLL report, Manila’s hotel inventory held steady in Q2 2025, but approximately 3,000 new rooms are anticipated to be completed in the second half of 2025, significantly expanding the Metro’s accommodation capacity.

“International hospitality brands continued to show strong interest in the Metro Manila market, with multiple completions scheduled for the second half of 2025, reflecting sustained confidence in the Philippine tourism sector’s growth potential,” the report added.

Here’s more from JLL:

The Metro Manila hotel market demonstrates strong momentum with RevPAR showing solid y-o-y growth. This performance indicates robust demand and growing traveller confidence in the Metro’s hospitality offerings.

Hotel occupancy reached 78.3% in Q2 2025, a 143.4 bps y-o-y growth. Luxury and Upscale segments maintained their strong performance. Average room rates increased by 0.1% y-o-y, from PHP 7,916 in Q2 2024 to PHP 7,917 in Q2 2025.

Outlook: Tourism initiatives and hotel expansion to support market growth

The hospitality sector is expected to grow as the holiday season approaches, and the VAT refund programme gains traction. These factors, combined with targeted tourism marketing efforts, are seen to boost visitor arrivals toward the 7.7 million annual target despite the current period’s moderation.

The introduction of approximately 3,000 new rooms in H2 2025 may temporarily apply pressure on occupancy rates, but steady tourism fundamentals and growing international interest in the Philippines as a destination are seen to support hotel demand.