THE existing and upcoming supply of 5-star hotels in the Bay City is enough to cater to the projected increased demand from the gaming/casino market, according to a real estate analyst.
In a text message, Claro Cordero Jr., Jones Lang Lasalle Philippines head of research, consultancy and valuation told the Manila Times on Wednesday that the existing hotels in the Bay City cater to the casinos in the area.
“We think that while there are a number of hotel developments in the Bay City area, the existing supply has been projected to support primarily the casino developments,” Cordero said.
Cordero noted that upcoming hotel developments are expected to meet the projected needs of the gaming market.
“The earmarked future developments will have the projected catchment base market – the future growth of the casino/gaming visitors,” Cordero said
Some of the upcoming hotels in the Bay City are The Manila Bay Resorts, The Westin Manila Bayshore with an estimated 600 rooms, and Resorts World Bayshore City with 1,500 rooms.
‘There may be opportunities for other hotel developments that will target different market segments (such as 3- or 4-star hotel developments) due to the continued growth of business activities in the Bay City area,” the analyst said.
Separately, Aseana Holdings Corporation managing director Delfin Angelo Wenceslao told the Manila Times that they have no plans of entering the hotel market.
The company is the developer of the 60-hectare Aseana City located in the Bay City.
“We actually have no plans of going into the hotel market,” Wenceslao said in an earlier interview. “With all the hotel news and casinos, 67 percent of all leisure supply is coming from this market with the gaming industry being competitive when Okada opens.”
Wenceslao agrees with Cordero’s view that there are already enough players in the Bay City hotel market.
Cordero noted that the performance of Bay City hotels will depend on how the casino developments themselves perform.
“The performance of the hotel developments in the Bay City area will be contingent on the performance of the casino developments, which we think will pick up due to the completion of the NAIA Expressway project,” Cordero said
He added: “The NAIA Expressway is expected to enhance the flow and movements of international visitors and arrivals and will likely enhance the performance of the casino developments and hotels.”