Confident about the medium to long term outlook on Philippine tourism, SM Hotels and Conventions Corp. (SMHCC) said it is focusing its hotel development and expansion on regional tourism and on business corridors in emerging and underserved markets.
“Domestic tourism continues to be the core driver while international arrivals are expected to grow in the coming years,” SMHCC said in an email. SMHCC is the hospitality arm of SM Prime Holdings Inc.
The company also sees robust demand for business tourism including the M.I.C.E. (Meeting Incentives Conference and Exhibitions) market.
“This is a segment of the market that plays a vital role in driving economic growth,” SMHCC said.
The increasing “Bleisure” (combining business travel with leisure activities) travel trend is also contributing to the growth of M.I.C.E. tourism, it added.
The company also sees a growing need for value-driven properties for the domestic and cost-conscious business traveler across key growth corridors.
SMHCC said SMX Convention Centers and Trade hallshave seen high-volume medium to large M.I.C.E. movements in recent months.
Accelerated expansion
In a statement last week, SMHCC announced it is accelerating its national expansion with seven new hotel projects set to be completed by end-2029.
SMHCC’s five-year growth plan, the statement said, is supported by a P10-billion capital expenditure program. This capex will be fully funded through internally generated cash flows.
The company said six of the new hotels will carry the Park Inn by Radisson brand, while one will be developed under Radisson.
Only one of the new SM hotels will be in Metro Manila. The rest are strategically distributed in regional growth corridors: two each in Calabarzon and Cebu and one each in Central Luzon and Laoag.
“This is a deliberate response to evolving market conditions. This is also because Filipinos are travelling more to less mainstream regional areas that lack branded, quality accommodations but are seeing improved provincial infrastructure. The rising demand for functional and well-located properties along with experiential travel are also fueling this focus,” SMHCC said.
The locations of the new hotels were selected based on tourism potential and integration with existing SM Prime assets, SMHCC said.
SMHCC said the new hotels will be integrated into the SM Prime ecosystem to enhance business appeal. These SM hotels will rise alongside malls, SMX Convention Centers, office and residential towers, and universities—creating a sustainable, mixed-use community.
This “natural market and built-in demand” fosters strategic synergies and generates both event-driven and leisure foot traffic across the complex, it added.
The company said the expansion strengthens its position in the midscale and high-end segments while leveraging synergies with the SM Prime’s diverse property network.
51% capacity growth
This latest expansion will increase the SM property group’s hotel count from 10 to 17 and boost total room inventory from 2,602 to 3,923, translating to a 51 percent capacity growth. The majority of the new inventory—969 rooms—is slated for delivery by 2028
“This rollout reflects our belief in the long-term potential of the Philippine domestic travel and tourism market,” said SMHCC Executive Vice President Peggy Angeles in the statement “We are building on the strength of regional tourism while delivering quality accommodations that enhance the value of our ecosystem of malls, events spaces and mixed-use developments.”
SMHCC’s hotel portfolio currently includes luxury (Conrad Manila, Radisson Blu Hotel Cebu), leisure (Taal Vista, Pico Sands) and business hotels (Park Inn by Radisson, Lanson Place Mall of Asia).
“Our hotels serve as catalysts for local economic activity,” Angeles added. “We are focused on creating long-term value—through jobs, tourism flows and sustained growth that enhances SM Prime’s diversified revenue base.”
