Over 12,000 new hotel keys are projected to be added to the country’s hotel supply next year, most of which are in the upper midscale, according to a report by Leechiu Property Consultants (LPC).
In a media briefing, LPC Director for Hotels, Tourism and Leisure Alfred Lay reported that 12,249 new hotel room keys across 50 projects are expected to be opened across the country in 2026.
Lay said the upcoming supply will diversify the type of hotels that are available in the market.
“What we can say is that in terms of, you know, the types of hotels that are being opened, this upper midscale, what we call an upper midscale type hotel, is the most popular segment that developers are chasing. And the reason for that is that it’s really the largest developers in our country who operate in that segment, the SM, Megaworld and the like,” Lay said.
Figures from LPC show that of the upcoming supply next year, 29 percent or 15 properties belong in the upper midscale segment with a total of 3,591 keys.
LPC said upper midscale hotels are gaining developer interest due to lower construction costs and faster returns.
The luxury segment also registered a chunk of the upcoming hotel supply at 18 percent, accounting for eight properties with 2,206 keys. This was followed by the midscale and economy segments with a share of 17 percent and 16 percent, respectively.
In addition, upscale hotels account for 12 percent of the upcoming supply, while upper upscale hotels have an eight percent share.
LPC emphasized that local hotel brands are steadily expanding as developers aim to differentiate their portfolios and establish homegrown standards of service excellence that cater more closely to evolving Filipino traveler preferences.
“And looking across the country, a lot of new, interesting brands. Some of these have already been announced in the news recently. And one of the other exciting things to see is that this progression of branding and increasing, improving the quality of hotels as we move into the secondary and tertiary cities around the Philippines,” Lay said.
LPC data showed that 27 of the hotels to be opened next year are located in Luzon, 17 in the Visayas and six in Mindanao.
Meanwhile, Colliers Philippines recently reported that about 3,100 new hotel rooms are expected to be completed in the National Capital Region in 2026, the highest since 2018.
It said that the Bay Area and Makati CBD will account for more than two-thirds of the new supply.
“From 2026 to 2028, we expect the annual delivery of 1,900 hotel keys, lower compared to the 2,200 new rooms completed from 2017 to 2019. Foreign brands will account for more than half of hotel openings in Metro Manila during the period,” Colliers said.
For its part, Santos Knight Frank expressed bright prospects for the country’s hotel and tourism sector.
“The outlook for the sector remains highly optimistic, with a solid pipeline set to elevate the country’s hospitality landscape even further. Upcoming openings include Canopy by Hilton, the completion of Sofitel by Q4, Mövenpick Manila Bay, and the Mandarin Oriental, all of which are expected to enhance the country’s luxury and upscale offerings,” SKF said.
The commercial real estate services emphasized that investment in MICE infrastructure continues to gain momentum, with major facilities such as SMX Seaside Cebu, Mactan Expo Center, and the Bohol International Convention Center, positioning the Philippines as a more competitive player in the regional meetings and events space.
Moreover, Colliers noted that there is a strong case for the Philippine leisure sector to diversify its tourism markets and expand MICE facilities, especially now that conferences and business events continue to flourish.
“Colliers believes that the domestic market will likely help fill the void left by plummeting South Korean and Chinese tourists so it’s pivotal for hotel operators and other leisure-related businesses to continue innovating to corner more domestic travelers,” it added.
