METRO MANILA is ready so as to add 2,890 hotel keys in 2026, with a lot of the recent rooms concentrated in Makati and the Bay Area, in line with Colliers Philippines.
In its Second-Half (H2 2025) Metro Manila Hotel Report, Colliers projected that over two-thirds of the brand new supply this 12 months will come from hotels within the Makati central business district and the Bay Area.
“The Philippines recorded dismal aggregate international arrivals in 2025. The country has yet to get well pre-covid visitors. Despite this, domestic travelers proceed to drive take-up for hotels and MICE (meetings, incentives, conferences, and events) facilities across the country,” Joey Roi H. Bondoc, director and head of research at Colliers Philippines, said within the report.
From 2026 to 2029, Colliers projects 1,800 rooms to be delivered annually. About 52% of the brand new supply in Metro Manila during this era will come from foreign hospitality brands akin to Mandarin, Dusit, Cover, and Moxy.
Colliers expects hotel occupancy this 12 months to achieve around 60%, amid the addition of recent rooms and limited international arrivals.
The consultancy noted that the Philippines’ tourist arrivals remain “disappointingly low,” as neighboring countries akin to Vietnam and Malaysia have exceeded their pre-pandemic visitor levels.
Tourist arrivals within the Philippines reached 6.48 million in 2025, in line with the Bureau of Immigration, below the pre-pandemic level of 8.26 million in 2019.
The country has faced challenges in attracting international visitors compared with regional peers, amid congested airports, limited inter-island connectivity, and underdeveloped transport infrastructure.
Domestic travelers proceed to influence hotel occupancy and every day rates, particularly in Metro Manila, Cebu, Cagayan de Oro, Davao, and Clark, Pampanga.
The hosting of the ASEAN Summit this 12 months is anticipated to support the country as a MICE destination, Colliers added.
In-person events akin to pharmaceutical product launches, property exhibits, bridal fairs, technology trade shows, and travel and tourism expos can further support MICE and accommodation demand, the report said.
“In our view, the federal government should deal with expanding and diversifying the Philippines’ leisure demand base, with some countries from Europe and the Middle East being the ‘low-hanging fruits,’” Colliers said.
Hotel operators are advised to focus on long-haul and high-spending tourists, noting that recent international flights have been introduced from countries akin to Russia, Palau, Canada, and India.
Developers are encouraged to contemplate an “asset-light strategy” for hotel expansion, Colliers said.
“This model allows foreign brands to enter into management or franchise contracts with local developers, reducing capital expenditure while providing stable, predictable returns for property owners, making a mutually helpful arrangement for each parties,” it said.
Hotel joint ventures which have adopted the “asset-light” model include partnerships between The Ascott Limited and DoubleDragon Corp., and between Ayala Land Hospitality with Marriott International, Inc. and Hilton Worldwide Holdings, Inc.
Developers also needs to make the most of recent policies that would support tourism growth, including the issuance of digital nomad visas, the Cruise Visa Waiver Program, and visa-free entry for Indian and Chinese tourists, Colliers said. — Beatriz Marie D. Cruz