Property consultancy JLL Philippines said some 2,587 room keys are expected to enter the market from 2025 to 2029.
In a report shared with Malaya Business Insight on Tuesday, JLL said majority of these rooms will be from the economy and midscale segments.
Worth noting, JLL said, is that around 74 percent of the incoming supply is coming from foreign operators: Marriott, Ascott, and Radisson Hotel. Meanwhile, 26 percent is coming from local operators such as Ayala Land.
“These will drive new supply in the upper, upscale, and luxury segments,” JLL said.
The majority of this new supply will be concentrated in Makati City, with additional developments spread across Pasay through Manila.
“Sustained demand for leisure travel will drive the hospitality sector forward,” JLL added.
In a separate report, JLL said occupancy rate of hotels in Metro Manila as of the first quarter stood at 80 percent, lower than the 83 percent in the fourth quarter of 2024.
The hotel room stock stood at 46,100 units as of the first quarter. No new stocks were recorded apart of the 2,400 rooms that came on line in the third quarter of 2024.
“The luxury segment consistently maintained the highest occupancy rates throughout the quarter, while all segments showed fluctuations but general trend upwards from the court quarter 2024 up to the first quarter,” JLL said.
Mandaluyong City registered the highest occupancy rate of 86.4 percent; followed by Pasig City, 85.7 percent and Paranaque City, 83.2 percent.
Average room rates fell slightly to P7,931 per night in the first quarter from P8,097 in the fourth quarter of 2024.
JLL noted a steady growth in the average room rates in the midscale and upper midscale segments which it said reflects rising demand for affordable yet comfortable accommodations.
The report showed midscale room rates rose to P6,200 per night in the first quarter of 2025 from P5,300 per night in the previous quarter.
