Investor confidence in the Philippine tourism and hospitality sector is gaining new strength as hotel developments expand nationwide and fresh capital flows into the market, driven by the passage of the 99-year foreign lease law.
According to Leechiu Property Consultants (LPC), the country is set to add 5,210 new hotel keys in 2025, with over 4,300 rooms scheduled to open in the fourth quarter alone. The surge reflects the industry’s robust response to record-high domestic travel and renewed optimism among both local and foreign investors.
“Rising travel demand has revitalized the hospitality pipeline across major destinations, with developers accelerating hotel openings and mixed-use projects,” LPC noted. “This signals not only recovery but long-term confidence in Philippine tourism.”
Domestic developers lead, global capital re-enters
The bulk of upcoming projects are spearheaded by local developers, underscoring the sector’s agility in meeting market demand in Metro Manila, Cebu, Boracay, Davao, and Palawan. However, foreign capital is also returning to the scene, as the 99-year lease law provides global investors with the stability needed for large-scale resort and integrated tourism ventures.
The reform is expected to open the door for foreign direct investments (FDIs) and institutional players—such as family offices, private equity firms, and sovereign wealth funds—to participate in long-term tourism assets. Similar frameworks in the Maldives have successfully transformed its tourism sector into a global investment magnet, a trend analysts believe the Philippines could soon emulate.
Strong investment outlook through 2026
LPC projects sustained momentum through 2026, fueled by the convergence of strong domestic tourism, expanding flight connectivity, and improving investor sentiment.
“With increased hospitality FDIs driven by the newly approved 99-year lease law, the tourism sector is poised to strengthen its position as a key investment area and a vital pillar of the Philippine economy,” stated Alfred Lay, Director of Hotels, Tourism, and Leisure, Leechiu Property Consultants
