Hotel occupancy in Metro Manila remained stable at 64 percent in the first half of 2025, up one percentage point from last year, according to real estate consultancy Colliers. However, occupancy is expected to hover just above 60 percent for the rest of the year amid weak foreign tourist arrivals and an incoming wave of new hotel rooms.
Average daily rates (ADRs) rose 5.1 percent year-on-year, with five-star hotels leading the increase.
Colliers attributed this to a rise in high-spending, long-staying visitors and limited new hotel completions during the period. It projects ADRs to grow by 6 percent for the full year, bolstered by domestic travel, business events, and major global gatherings.
Colliers recorded 97 new rooms in first half of 2025 with the opening of Novel Hotel Manila in Taguig. Delays in projects across San Juan, the Bay Area, and Quezon City have pushed the revised 2025 room completion forecast to 1,500—down from 2,700. Key openings expected in second half of the year include Seda One Ayala, AC Hotel Ortigas, and Somerset Valero Makati.
Still, foreign tourist arrivals fell 1.2 percent year-on-year to 2.54 million from January to May, dragged down by declines in visitors from South Korea and China. The Philippines continues to lag behind regional peers in infrastructure, branding, and foreign hotel brand presence.
While international tourism struggles, domestic and MICE (Meetings, Incentives, Conventions, and Exhibitions) demand is propping up hotel performance. Developers are pivoting to local markets with condotels and staycation-focused offerings.
Industry players are urged to adapt—through innovation, sustainability, and regionally distributed high-value events—to reinvigorate tourism momentum and attract global interest beyond Metro Manila.
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