The Market Monitor Minding the Nation's Business
The country’s property giants are further expanding their hotel portfolios with new acquisitions, international partnerships, and developments beyond Metro Manila.
Last June 30, Ayala Land, Incorporated (ALI) announced its acquisition of the New World Hotel Makati — a 5-star luxury hotel in the country’s business district, located conveniently near Ayala Malls’ Greenbelt and Glorietta.
The move will not affect the hotel’s staffing and operations, ALI clarified.
“The addition of New World Hotel Makati complements our existing portfolio and reinforces our commitment to serving evolving customer needs in one of the country’s most dynamic cities,” said George Aquino, Ayala Land Hospitality (ALH) chief executive officer and president.
This acquisition is in line with the company’s expansion plans. ALH is investing $500 million or P28.6 billion within the next five years to further develop its portfolio. This means expansions for both homegrown and international brands, on top of acquiring new ones.
Toby Miranda, director and head of Investment & Capital Markets at real estate services firm Santos Knight Frank, noted the country is seeing “exciting times” for the hospitality sector.
“While the Philippines might have slightly missed its 2024 target for tourist arrivals, revenue in 2024 reached P760 billion, and impressive 26.7% surge from pre-pandemic figures back in 2019,” he said at a press briefing on Monday.
Average daily rates across five-star hotels in Metro Manila also increased by 11% from the first quarter of 2025.
Average rates of 5-star hotels in Metro Manila
City Average rate per night
Quezon City P6,584
Mandaluyong P7,214
Pasig P7,487
Makati P10,628
Parañaque P12,243
Pasay P13,601
Taguig P14,991
Source: Santos Knight Frank’s Hospitality Market 1H 2025 reportCreated
Hotels in the metro saw a 78% occupancy rate from January to March, thanks to both international and local tourists.
“The increased arrival from high-spending markets like Japan, Canada, and Australia translates to the demand for hotels and [pushes] rates upward,” Miranda said.
And so Ayala Land is not the only one preparing for growth.
Billionaire Andrew Tan’s Alliance Global Group is giving the bulk or P50 billion of its P59-billion expansion funds to its property arm Megaworld Corporation this year.
A portion of the funds will be used to finance new hotels in Metro Manila, Pampanga, Palawan, Bacolod, Iloilo, and Boracay — adding 3,600 room keys to Megaworld’s portfolio.
Last week, Megaworld partnered with international hospitality group Accor to help improve its own hotel operations. The company’s Belmont Hotel Mactan in Cebu will be transitioning into a Mercure franchise, one of the brands under Accor’s belt.
The Sy family’s SM Prime Holdings, Incorporated is also eyeing “high-growth regional corridors,” setting sights on developing a new hotel in Laoag City. The company has earmarked P15 billion in the next five years to expand its hospitality portfolio.