The Philippine hotel industry is poised to expand its investment pipeline beyond 40,000 rooms over the next five years, underscoring developers’ longer-term confidence in tourism despite mounting geopolitical and travel-cost risks.
The Philippine Hotel Owners Association (PHOA) and Leechiu Property Consultants (LPC) are set to release their 2026 Philippine Accommodation Pipeline Report on Sept. 15, offering an updated view of planned hotel and resort projects nationwide.
PHOA Executive Director Benito “Bong” Bengzon Jr. said the new pipeline would be larger than the 2024 report, although he declined to provide the exact figures ahead of the launch.
“Suffice it to say, it will be higher,” Bengzon said.
The 2024 report identified 158 accommodation establishments with 40,084 rooms and about P250 billion in private investment. Luzon accounted for half of the planned rooms, followed by the Visayas with 42 percent and Mindanao with 8 percent.
The new report will track the status of earlier projects, including those completed, delayed or shelved, while detailing the geographic distribution of new supply and the participation of local and international hotel brands.
Bengzon said developers had generally continued with projects despite tourism headwinds, reflecting the industry’s long investment horizons. Hotel developments typically require hundreds of millions to billions of pesos and take years to complete.
The operating environment, however, is becoming less predictable. Bengzon said the Middle East crisis could affect arrivals from the region and long-haul travelers reliant on major aviation hubs there. Higher airfares and travel costs could further temper demand.
LPC likewise warned in its latest property report that Philippine tourism remained resilient but advised caution as the delayed effects of the energy crisis could weigh on hotel performance in the second half of 2026.
The expanding pipeline therefore presents a balancing act for investors: build ahead of expected tourism growth while avoiding an oversupply of rooms if travel demand weakens.
PHOA represents 221 hotels and resorts owned by 67 companies, highlighting the sector’s growing role in expanding accommodation capacity and supporting the government’s tourism investment agenda.
