Contrary to popular belief, hotel rates in the Philippines are not among the most expensive in Asia. In fact, they fall in the mid to lower range compared to other Southeast Asian countries.
Today’s market briefing in Makati City, Leechiu Property Consultants highlighted that while the country’s high-end hotels continue to perform strongly, budget accommodations are facing increasing challenges—largely due to stiff competition from unregulated Airbnb units.
“We’re not expensive — we’re competitive,” said Alfred Lay, Director for Hotels, Tourism & Leisure at Leechiu.
Citing regional data from international branded hotels, Lay said that hotel rates in the Philippines are “in the middle of the pack, if not towards the lower end” compared to its Southeast Asian neighbors.
Based on average daily rates (ADR), Thailand leads with P8,171, followed by Cambodia (P6,591), Vietnam (6P6,539), Philippines (P6,048), Malaysia (P5,330), and Indonesia (P4,186). The Philippines ranks fourth out of six countries — far from the “overpriced” perception.
Although hotel rates are comparable, the Leechiu team noted that transportation costs may be where the difference in travel spend is more significantly felt.
“We need to zoom out and look at the bigger picture,” Lay added. “Hotel pricing is just one component of the total travel spend, which also includes transportation, food, and ancillary services.”
He also pointed out that while 4- to 5-star hotels remain resilient across both urban and resort locations, it’s the lower-tier segment that’s under strain.
“There’s a lot of pricing pressure in the economy segment, especially with the surge of unregulated Airbnb units in residential condos,” he said.
Still, Lay emphasized that the Philippines remains a value-for-money destination, particularly for travelers seeking quality accommodation with competitive pricing.
