The Sy family-controlled SM Prime Holdings Inc. is allocating P15 billion to a five-year development plan to expand its hotel portfolio, which will include eight hotels and two convention centers.
The publicly listed company said yesterday in a regulatory filing with the Philippine Stock Exchange that SM hotels posted a 67 percent occupancy rate, up by 2 percentage points from the previous year’s 65 percent.
SM Prime’s hospitality arm, SM Hotels and Convention Corp. (SMHCC), has a portfolio of 10 hotels with more than 2,600 hotel keys.
SMX Convention Centers also posted an increase of 15 percent in hosted events, drawing 6.3 million visitors in 2024.
Peggy Angeles, SMHCC executive vice president, said SMHCC’s properties in the National Capital Region outperformed the hospitality industry, averaging 71 percent occupancy, compared with the 61 percent industry average.
“The rise in hotel stays and event bookings signals a vibrant rebound for the hospitality and MICE (meetings, incentives, conferences, and exhibitions) sectors,” Angeles said.
SMHCC is also upgrading its function rooms, increasing food and beverage outlets as well as renovating rooms at Taal Vista Hotel, Pico Sands Hotel, and Park Inn by Radisson Davao, Angeles said.
A March 5 study made by stockbroker BPI Securities Inc. said the real estate firm will be one of the beneficiaries of the revitalized private consumption in the country.
BPI Securities said SM Prime’s malls are poised for faster revenue growth this year, banking on a strong private consumption rebound after an underwhelming performance last year of 4.7 percent growth, as measured by the household consumption and family expenditures in the national income accounts.
BPI Securities said SM Prime’s hotel business will continue to outpace mall growth, potentially rising by 19 percent in terms of topline fueled by demand for meetings and exhibit facilities and robust domestic tourism.
On the mall business, BPI Securities expects SM Prime malls to post a faster 12 percent revenue growth this year against 9 percent last year.
“We think robust demand for dining and recreation, election driven spending, and easing inflation should boost tenant sales and improve traffic growth from high single digit last year,” BPI Securities said.
A high single digit revenue growth for the company’s office space business on the back of its resilient business process outsourcing tenants is expected, BPI Securities said.
Last month, SM Prime said it posted its highest ever consolidated net income of P45.6 billion in 2024, up by 14 percent from P40 billion a year earlier, driven by higher contributions from all its businesses.
