International luxury hotel operators gravitate to PH
By Tessa R. Salazar
Philippine Daily Inquirer
TO FURTHER accommodate the growing number of
visitors, more hotels are slated to be constructed within Newport City by
2016.
Marco Polo Hotels, Ascott The Residence, Maxims Genting, City of
Dreams, Solaire Resort and Casino, Hyatt, Marriot Manila, Shangrila Hotels and
Resorts, Conrad Hotels and Resorts, The Westin Philippine Plaza Manila, Hilton,
Sheraton Hotels and Resorts.
These are just some of the international luxury hotel operators that
would either come into the country or experience boom times from 2014 to 2017,
as forecast by CBRE Philippines during a Jan. 23 press briefing in Makati. It
also reported that luxury hotel accommodations would play a major role in the
hospitality sector, and that MICE (meetings, investments, conventions and
exhibits) locations would pick up their businesses, and gaming establishments
would draw in more foreign guests.
Property analyst Enrique M. Soriano III said, “Retail and hotels
will likely post solid growth as employment and spending in the domestic front
continue.”
The Colliers International market overview (for 4Q 2013) predicted
that in the next three years, up to 4,300 rooms would be “delivered” annually,
the highest number since 1988.
“Meanwhile, local real estate firms are entering the hotel and
leisure sector, as SM Prime Holdings, Ayala Land and Robinsons Land introduce
their new projects slated for completion in the next three years,” noted
Colliers International Philippines Research. It added that last year, 1,372 new
hotel rooms opened in Metro Manila, bringing the total room inventory to 17,517.
More branches expected
Jones Lang La Salle, in its JLL 2014 property market monitor,
singled out Robinsons Land Corp. (RLC), which recently opened its seventh Go
Hotel branch in Iloilo City. This one has 167 rooms
JLL forecasts more of such branches to be built over the next few
years as RLC has offered the brand for franchise. In particular, Singapore-based
Vanguard Hotels Pte. Ltd., in partnership with Roxaco Land Corp., is set to
construct at least five new branches in the next two years.
JLL also cited residential property developer Vista Land &
Lifescapes Inc., which plans to venture into hotel and resort development.
According to the firm, the planned venture is mainly supported by the strong
performance of the tourism industry. The firm has formed a new unit that would
focus on the development of hotels and resorts, likely starting in 2015.
40% at Entertainment City
Colliers International Philippines’ comprehensive
report indicated that of the 4,120 rooms to be completed in 2014, more than 40
percent would be concentrated within the Pagcor Entertainment City, such as
Belle Grand City of Dreams (920 rooms) and the surrounding Mall of Asia Complex,
such as Radisson Hotel (500 rooms) and Tune Hotel (204 rooms).
It also revealed a new player in the hotel and leisure
market—Shanghai Jin Jiang International Hotels—one of the leading hotel groups
in China, with two projects slated for turnover in 2014, the Jin Jiang Inn
Ortigas (95 rooms) located beside Richmonde Hotel and the Jin Jiang Inn
Greenbelt (70 rooms) located opposite New World Hotel Makati.
“As the government strives to reach its foreign tourist arrivals
target of 10 million in 2016, local real estate firms are joining the hotel and
leisure sector to augment the accommodation needs of foreign travelers,”
reported Colliers.
It added that the Carlson Rezidor Group had partnered with the SM
Hotels and Conventions Corp. (SMHCC) to launch the 150-room Park Inn by Radisson
in Clark, Pampanga. This project is set for completion in 2016.
Colliers also observed that Ayala Land, through its hotel and resort
corporation, had launched two new Seda hotels in its emerging mixed-use
developments in Vertis North and Circuit Makati, both of which would be
operational in the next three years.
RLC, for its part, aims to complete 1,200 rooms in its portfolio by
2014 by launching three Go Hotels—one in Ortigas Center, another in Butuan and
one in Iloilo.
Decreased layovers
CBRE reported an 11-percent growth rate of tourist arrivals as of
October 2013 (year-on-year) and possibly exceeding 4.5 million for the whole
year.
Despite the increase, it estimates that the average hotel occupancy
rate dipped from 67 percent in 2012 to 64 percent in 2013.
CBRE said: “This may be attributed to the increasing number of
international flights to airports outside of Manila, thereby reducing the need
to layover in Manila and easing the access to other major tourist destinations
in the country like Boracay Island. The Mactan Cebu International Airport
Authority, manager of the second largest airport in the country, reported a
15-percent increase year-on-year in the number of international flights at the
airport from January to October this year from 3,972 to 4,581 flights.”
Hotel rates
Colliers also reported that growing interest in the Philippines as a
tourist destination and a business investment option has been driving hotel room
rates to consistently increase in Metro Manila.
It pointed to the trend that average five-star room rates had grown
by 3.7 percent to $333 per night in the second half of 2013, versus the
1.1-percent increase in the first half of that year. Four-star room rates
increased slightly by 1.1 percent in the second half to $273 per night.
On the other hand, three-star room rates continued to improve
significantly at 9.5 percent half-on-half, 250 basis points higher than the
7-percent growth posted in the last period. This can be attributed to the
increasing number of local and foreign tourists seeking quality accommodation at
affordable prices. Meanwhile, corporate rates grew considerably across all classifications at an annual average of 15 percent.
