DESPITE lower occupancy rates in the first half of the year, prospects for the Philippine hotel industry remain rosy, as developers go on with their hotel expansion plans for the next five years, said Pinnacle Real Estate Consulting Services Inc.
In its latest Market Insi ght report released on Monday, Pinnacle said hotel occupancy rates in Manila slipped to an average of 68 percent from January to June, 1.68 percentage points lower than last year.
But citing data from the United Nations World Tourism Organization, Pinnacle noted that other countries in Southeast Asia saw even bigger declines in hotel occupancy rates.
For one, Singapore experienced a 2.1 percentage-point drop, while Bali fell 8.6 percentage points in the same period. Only Thailand and Vietnam broke the trend, with slightly higher occupancy rates, Pinnacle said.
The consultancy firm said the country’s top real estate players are not dissuaded from expanding their hotel businesses, as tourist arrivals and receipts continue to increase yearly.
The report noted that tourist arrivals from China overtook tourist arrivals from Japan, as it ranked fourth in the first half of the year.
“This is quite surprising, given that the current Philippine-China dispute resulted to a travel advisory from the Chinese government discouraging its citizens to travel to the Philippines,” Pinnacle noted.
Pinnacle cited major developers looking to expand their hotel ventures in the next five years.
One is the Filinvest Group, which has renamed its Filarchipelago Hospitality Inc. to Chroma Hospitality Inc., and which will also offer hotel management services to other firms.
Chroma currently has 1,063 keys in Alabang and Cebu and aims to have 5,000 keys by 2020.
The Filinvest Group plans to spend as much as P2.6 billion for a 228-room Canvas Hotel in Cubao and a 185-room Canvas Hotel in Mactan.
“The Group is bringing to the market a Crimson Hotel in Boracay; Quest Hotels in Dumaguete and Tagaytay; Canvas Hotels and Resorts in Cubao, Mactan and Cebu City; and a Serulyan Condotel in Mactan. These hotels will open between 2018 and 2019,” said Pinnacle.
The Filinvest hotels might likewise expand to Pasig, Quezon City, and provincial areas like Batangas, Cavite, Laoag, Baguio, Cebu, and Davao.
Similarly, the Ayala Land Group plans to expand its Seda Hotel brand nationwide, in line with its so-called Vision 2020, which includes having a portfolio of 6,000 hotel and resort keys within the next five years.
The Ayala Group is currently building nearly 2,000 hotel rooms that will open from 2016 to 2018.
Pinnacle also cited the Robinsons Land group, which has been steadily beefing up its Go Hotel brand in its present nine locations.
Rockwell Land, which is looking to expand its Aruga hotel-serviced apartments, was also mentioned.
The Red Planet Hotel brand, which was formerly known as Tune Hotel, shows no signs of slowing down, with its plan to have 20 hotels in the next five years.
Pinnacle also mentioned the joint-venture of Cebu-based developer Everjust Realty Development Corp. and Japanese hotel chain Toyoko Inn, which targets to open a 583-room business hotel in Mandaue City by next year.
Joining the hospitality game is mass housing developer 8990 holdings, which owns two Azalea hotels in Boracay and Baguio. The firm aims to build three more Azalea hotels and residences in Cebu, Davao, and Clark.