Metro Manila is heading for a fresh wave of hotel openings through 2029, with foreign brands accounting for nearly half of new supply as developers position for the recovery of Philippine tourism, according to Colliers Philippines.
Colliers expects 2,490 hotel rooms to be completed in 2026, including Dusit Greenhills Manila, Canopy by Hilton, Seda Hotel Arca South, and Mandarin Oriental Makati. About 846 rooms were delivered in the first half.
From 2026 to 2029, nearly 2,000 rooms are projected to be completed annually, with the Bay Area, Quezon City, and Makati central business district accounting for 71 percent of incoming supply.
The pipeline comes as Metro Manila hotel occupancy stood at 63 percent in the first half, down from 65 percent in the second half of 2025. Colliers expects occupancy to remain above 60 percent this year before returning to pre-pandemic levels by 2028.
“Higher international arrivals into the Philippines YoY are encouraging, but they are hardly a reason for complacency,” Colliers Philippines Research Director Joey Roi Bondoc said, noting that visitor arrivals and hotel occupancy have yet to regain pre-pandemic levels.
Amid the supply buildup, Colliers urged developers to be selective and pursue differentiated concepts, including lifestyle hotels, MICE-oriented properties, and serviced residences for expatriates.
Developers should carefully assess location, positioning, demand drivers, and competing supply to mitigate oversupply risks while sustaining occupancy and room rates, the property consultancy said.
Colliers also sees opportunities in hospitality real estate investment trusts, saying longer 99-year land leases for foreign investors could support asset valuations and encourage long-term foreign investment in the sector.
