Cebu, Manila developers cashing in on high foreign arrivals — report

MANILA, Philippines — Local and national developers in Cebu have started either bringing in foreign hotel brands or expanding homegrown ones amid expected surge in foreign arrivals, according to property consultancy Colliers International, which also sees a similar trend in Metro Manila.

In its second quarter report released Wednesday, Colliers said the country’s leisure sector is expected to get a “much-needed boost” following the completion of the second terminal of Mactan-Cebu International Airport.

“In our opinion, the new terminal’s completion is timely as we see more foreign and domestic tourists visiting Cebu following the national government’s order to close the popular Boracay island to pave way for rehabilitation,” Colliers said. “We believe that the potential surge in arrivals is enticing local and national hotel developers in Cebu to ramp up construction.”

In Metro Manila, Colliers said developers are cashing in on the rising number of international visitors by building three to five-star accommodation.

For second half of 2018, Colliers estimates that 1,100 new hotel rooms will be completed across Metro Manila, pushing the 2018 new supply to a record high of 2,800 rooms. From 2019 to 2021, the property consultancy sees completion tapering off to about 1,500 new rooms per annum.

“Over the next three years we see the demand for four and five-star hotels rising in Fort Bonifacio due to continued influx of outsourcing and traditional businesses in the area,” Colliers said.

“Demand for two-and three-star hotels should continue to grow especially in the fringes of established business hubs such as Makati,” it added. — Ian Nicolas Cigaral