Luxury hospitality seen as growth niche for Philippine developers

Property consultants said residential oversupply could push more Philippine developers to pursue luxury hospitality projects.

“With over 7,000 islands, it has all the ingredients, but it seems that Philippine hotel developers are conservative,” Bill Barnett, founder and managing director of Thailand-based hospitality consulting group C9 Hotelworks, said in an interview.

Mr. Barnett, who has served as a consultant for various hotel and residential developments across the Asia-Pacific, said many of the Philippines’ hotels and resorts are “family-run, so they tend to look at the industry and do what their friends do.”

“If somebody does one thing, they all do it,” he added.

Mr. Barnett also noted that some hospitality developers tend to be “commodity minded.”

“Meaning, they think more is better. More rooms, more things… You can’t commoditize luxury because somebody else can come in and lower their prices,” he added.

He also noted the oversupply of condominium units in Metro Manila would prompt developers to shift to the luxury segment.

“I think, now with real estate being overbuilt, Philippine developers will have to find a niche,” he said. “The real estate situation in the country triggers more luxury…because of the oversupply.”

For a luxury hospitality development to be attractive, Mr. Barnett said it is important to have easy access to its location.

“You can’t stay there if you can’t get there,” he said. “There should be enough flights which make it attractive, not only for guests, but to transport staff, and even goods and services.”

He also noted that luxury hospitality properties must have a unique selling point, with many travelers seeking localized experiences. Mr. Barnett also cited the importance of unique food & beverage concepts, strong internet connectivity, and exclusivity of location.

Alfred Lay, director for hotels, tourism, and leisure at Leechiu Property Consultants, said there are over 35 luxury hotel projects ongoing in the Philippines, accounting for over 7,500 hotel rooms over the next four years.

“If you include projects which have yet to be announced, then the number climbs to 50 luxury hotels and adding over 10,000 high end room keys,” he said in a Viber message.

However, air access remains a key roadblock in making the Philippines a fully realized luxury destination, Mr. Lay said.

“If you’re a high-spend international traveler, you don’t want connecting flights just to get to your resort — you want to land straight into places like El Nido or Siargao. Where we’ve got international airports near tourist hubs, you’ll notice the luxury hotels follow, such as Mactan, Panglao Island, Boracay,” he added.

Joey Roi H. Bondoc, director and head of research at Colliers Philippines, said luxury hotels are expected to perform well amid high occupancy rates and the entry of foreign hospitality brands into the country.

“Even if foreign arrivals to the Philippines dropped marginally in the first five months of 2025, there’s still a healthy level of occupancy, especially in Metro Manila hotels,” he said via telephone.

In the first half of the year, five-star hotel occupancies remained steady at 67% from the same period in 2024. This comes as foreign arrivals in the Philippines remain below pre-pandemic levels at 2.54 million as of end-May.

However, Colliers noted that the Philippines has a 4% penetration rate of branded hotels, way behind Singapore (45%), Indonesia (10%), and Thailand (8%).

“I think it will take a few more years for the Philippines to be at par with Thailand, Singapore, of course, Indonesia, especially if you look at our recovery rate pre-pandemic,” he said.

Source: Business World

How delayed financial planning drains your wealth

For many Filipinos, personal finance often takes a backseat to daily responsibilities. We tell ourselves, "I'll invest when things settle down," or "I'll start saving when I earn more." But while we wait for the perfect moment, time quietly moves on — and with it, the value of opportunities is lost.

Delaying financial decisions doesn't just postpone progress; it creates a hidden cost that becomes painfully visible later in life. The longer we put off financial planning, the more we miss out on our most valuable asset: time.

A tale of two investors

Consider two Filipinos Maria and Juan Maria starts investing P2,000 per month at age 25, consistently until age 60. Over 35 years, she contributed P840,000.

Juan waits until age 35 to start. He invests P3,000 per month until age 60, contributing P900,000 over 25 years.

Assuming an average annual return of 8 percent, Anna ends up with over P7.5 million, while Ben ends up with about P5.5 million.

Why? Because Anna gave her money more time to grow. This is the power of compound interest, where your earnings also start earning.

The key message: you don't need to start big — you just need to start early and be consistent.

The role of banks

Many Filipinos trust savings accounts and time deposits — and for good reason. Banks provide safety, convenience and deposits are insured by the Philippine Deposit Insurance Corp. They're ideal for emergency funds, short-term savings and daily transactions.

But problems arise when people park all their money there, thinking it's enough for long-term goals.

Here's why: typical savings accounts yield less than 1 percent per year, and time deposits offer about 1.5 to 3 percent. Meanwhile, inflation in the Philippines averages 3 to 4 percent annually.

This means your money may grow in pesos but lose value in purchasing power. For example, P100,000 in a savings account today may only have the purchasing power of around P55,000 after 20 years, assuming 3-percent inflation.

Even if your bank balance doesn't decrease, what you can actually buy with that money will shrink significantly over time. It's like your money is standing still while prices keep moving forward.

So while it's wise to keep some cash in the bank for safety and flexibility, it's not ideal to leave everything there — especially money you plan to use five, 10 or 20 years from now.

The emotional cost of doing nothing

Beyond pesos and returns, financial inaction carries emotional costs stress from not knowing where your money goes, regret and frustration when you realize how much time — and potential — you've lost. These emotional burdens often go unnoticed until it's too late.

Three small actions that make a big difference

1. Know where you stand. Understand your current financial picture: list all income sources, track expenses, write down debts and assets, and calculate your net worth (assets minus liabilities). Clarity is the first step to control.

2. Start small, stay consistent. Even P1,000 or P2,000 per month can grow significantly when invested wisely. You don't need a large windfall to begin — what matters is starting now. Set up automatic transfers to mutual funds or digital investment platforms. Consistency beats intensity in wealth-building.

3. Balance your financial strategy. Think in layers short-term (0–one year): bank savings, T-Bills or time deposits for emergencies; medium-term (one to five years): balanced or conservative investment instruments like bonds and FXTNS; long-term (five-plus years): growth-oriented investments like equity funds or real estate.

This ensures your money works with the right mix of accessibility and growth potential.

Don't forget protection

While growing your wealth is important, it's equally vital to protect what you already have — your income, health and family. Life is unpredictable, and emergencies can wipe out years of savings if you're not prepared.

Consider health, life and disability insurance. These safety nets help you and your loved ones stay secure, even when life throws challenges your way.

Think of protection as the foundation that keeps your financial house standing strong so your investment plans don't crumble when unforeseen events occur.

Time is your greatest asset

It's easy to focus on what we can't do right now: "I can't save more," or "I don't know where to invest." But far more dangerous is what we don't realize we're losing by doing nothing: time, peace of mind and future opportunity.

Every year you delay is your future value lost forever. Every small step you take today is a seed planted for a more secure tomorrow. You just need to start.

Source: Manila Times

New law allows foreign investors to lease land in the Philippines for up to 99 years

President Ferdinand R. Marcos, Jr. signed into law a measure that allows foreigners to lease land in the Philippines for up to 99 years.

Republic Act (RA) No. 12252 amends RA No. 7652 or the Investors’ Lease Act by further liberalizing the lease of private lands by foreign investors.

“It is the policy of the State to ensure the reliability of investors’ lease contracts to provide a stable environment for foreign investments,” the law read.

The law extends the term of foreign investors’ land leases to 99 years from the current 75, putting the country in line with policies of Singapore, Malaysia, and Indonesia.

Under the law, the President, upon the recommendation of the Fiscal Incentives Review Board (FIRB) or other agencies, can impose a shorter lease period for foreign investors in sectors considered as “critical infrastructure” in the interest of national security.

The law allows long-term land lease for “the establishment of industrial estates, factories, assembly or processing plants, agro-industrial enterprises, land development for industrial or commercial use, tourism, agriculture, agro-forestry, ecological conservation and other similar priority productive endeavors.”

In the case of tourism projects, the 99-year lease is limited to projects with an investment of not less than $5 million, 70% of which will be invested in the project within three years.

Under the law, foreign investors that violate the lease contracts face a fine of between P1 million to P10 million or imprisonment of up to six years.

The lease contract can be terminated if the foreign investor fails to start the investment project within three years of the signing.

This measure was a priority by Legislative-Executive Development Advisory Council for passage before the 19th Congress adjourned.

Mr. Marcos signed the law on Sept. 3, but a copy of the law was uploaded on the Official Gazette website on Sept. 4.

The law takes effect 15 days after it has been published in the Official Gazette or a newspaper of general circulation.

Source: Business World