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

Building a flood-proof city

The 2009 Typhoon Ondoy (Ketsana) was one of the compelling reasons why I started envisioning building Clark Green City (now New Clark City). It was merely a tropical storm without much wind or gustiness. But its effects were catastrophic, as it drowned Metro Manila with a month’s volume of rainfall in just 24 hours. It was one of the worst, if not the worst, floodings of Metro Manila, with more than 460 people dead, many of whom were residents of Provident Village in Marikina, and causing economic losses of more than P23 billion, including the destruction of more than P10 billion worth of infrastructure and agriculture. In the aftermath of Ondoy, it was discovered that Provident Village should never have been developed as a residential community, as it was a natural hazard area, a flood basin of the Marikina River.

Deforestation of the uplands and the massive quarrying activities in the Sierra Madre caused the raging flashfloods, which caused the Marikina River and its tributaries to burst beyond the banks and into the highly dense communities beside them. The flimsy shanties of poor urban communities along the riverbanks were swept away by the floodwaters and slammed the structures against the bridges. Because people thought that Ondoy was not a strong typhoon, the government was caught unprepared by the massive floods that it caused. It was also discovered that government weather monitoring could have been more informed of the volume of rainfall if it had been provided with a Doppler radar.

Because of this, the late President Aquino III made it one of his priorities upon being elected in 2010 to acquire Doppler radars that would provide accurate weather data to our weather monitoring officials. However, in 2013, another unfamiliar climate change phenomenon would hit the country. Despite the preparedness of government agencies in disaster relief operations, they were no match to Super Typhoon Yolanda (Haiyan), the first category 5 super typhoon to make landfall in the country. This time, it was not the volume of rainfall but the intensity of wind gustiness that created devastating storm surges that swept away the entire Tacloban City and other towns along its destructive path.

Last Saturday, Quezon City experienced rainfall even much worse than Ondoy’s. In a short span of one hour, rainfall reaching 121 mm — compared to Ondoy’s peak of 90 mm — drenched the entire city. UP Diliman, which had never experienced flooding before, experienced the worst floods in its history. Fortunately, this downpour was localized. Hence, the damage was mitigated, and the administration of Mayor Belmonte was equipped with the technology and resources to immediately respond to the needs of QC constituents. Had the torrential downpour covered the entire Metro Manila again, the damage would have been unthinkable. Sadly, this is the new normal for climate change. We should expect more of these disasters to come our way.

The Aquino administration learned its lessons from Ondoy and Yolanda. It created the Climate Change Commission, empowered the Office of Civil Defense capabilities, invested in more advanced weather monitoring technologies, including Project NOAH, and the acquisition of more Doppler radars. Under the able leadership of the then public works secretary Babes Singson, the Department of Public Works and Highways (DPWH) drew up a flood control masterplan for the entire Metro Manila to address the impending floods.

Aware of the vulnerability of Metro Manila to climate change disasters and the possible Big One earthquake, I led the master planning and laying of the foundations of a new backup capital in Clark, which we launched on April 11, 2016, and which is now known as the New Clark City. One of the major features of this new metropolis is the preservation of natural waterways, such as rivers, creeks and streams. We required that these natural waterways never be blocked, nor their flows hindered.

Adopting the similar engineering technology that we built in Bonifacio Global City, we incorporated a 100-hectare manmade lake that would serve as the water detention pond where run-off water that causes floods will be detained prior to releasing it to the nearby streams. The rivers will have 100-meter open and green easements that will serve as green parks, esplanades, jogging paths and picnic areas. We envisioned rivers with natural anti-erosion infrastructures such as trees and other natural green softscapes. We wanted the rivers to be as clean to allow our children to experience swimming in them because the water in these rivers is coming from the natural springs of Mt. Pinatubo.

Our flood problems are not only caused by nature. Because nature, left alone, will simply seek its natural path. However, floods are caused by man’s stupidity and greed as well. We cannot stop nature on its track, but we can manage its course in a limited way. That is the role of science and engineering. Water is the source of every living thing on Earth. Yet it is also one of the most destructive, such that God would have to use the great flood to almost wipe out humanity.

With the raging controversy on the plunderous greed of public works officials and their cabal of contractors, we witness firsthand that science and engineering technologies can address the flooding problems that we have. What we could not stop, though, in so many years and so many ways, is the unquenchable avarice of a very few who made plunder of government funds an intergenerational family enterprise.

It’s about time that this flood of shameful plunder be met by the burning fire of people’s rage and retribution.

Source: Manila Times

Estate developments anchored on transport hubs

The pulse of cities beats strongest in their transport hubs, where the constant tide of movement defines the rhythm of urban life.

Once regarded solely as conduits for transit, these centers of activity are now shaping entire communities. They have evolved into the foundations of estate developments, driving progress and elevating how people live in connected environments.

The global city model

Around the world, transport-integrated estates reveal the profound influence of mobility on urban form.

In Hong Kong, the MTR has woven residential towers, offices, and shopping complexes directly into its stations, placing daily essentials within minutes of travel. Tokyo’s districts of Shinjuku and Shibuya thrive as dynamic hubs where rail networks converge with retail landmarks, entertainment, and cultural attractions.

London’s King’s Cross has been reimagined into a flourishing district combining education, business, and leisure, all rooted in its transport spine.

Once a declining rail yard, London’s King’s Cross has been reimagined into a flourishing district combining education, business, and leisure, all rooted in its transport spine. These developments show how the strategic joining of transit and real estate generates lasting urban vitality.

Philippine pioneering efforts

The Makati central business district had set the original benchmark for integration long before new estates—weaving together workplaces, commercial centers, and transport access in a cohesive urban fabric.

This global pattern finds resonance in the Philippines, where Ayala Land has spearheaded transport-oriented estates. Arca South in Taguig embodies forward-looking urban design, planned around the future Metro Manila Subway and the South Intermodal Transport System. Vertis North in Quezon City reflects the same vision, standing beside MRT-3 and directly linked to the North Triangle Common Station that will connect several railway lines.

Concentrating offices, residential towers, and retail establishments around transit allows cities to optimize land efficiency in dense districts. (DOTR)

From Makati’s early precedent to today’s emerging estates, Ayala Land illustrates how projects can anticipate infrastructure, establishing growth districts that evolve with the city’s expanding networks.

Urban growth advantages

The impact of these estates extends to the development of metropolitan areas. It influences how these urban regions grow and evolve.

Concentrating offices, residential towers, and retail establishments around transit allows cities to optimize land efficiency in dense districts.

These nodes attract global companies, educational institutions, and retail anchors eager to operate where accessibility drives performance. Reliance on private cars decreases as people embrace convenient public systems.

With national undertakings such as the Metro Manila Subway and the North-South Commuter Railway underway, Ayala Land’s estates complement these efforts, multiplying their economic and social impact.

Shinjuku in Tokyo thrives as dynamic hub where rail networks converge with retail landmarks, entertainment, and cultural attractions.

Through this interplay, transport and real estate reinforce each other, positioning these estates as catalysts for sustained urban vitality, shaping investment confidence, encouraging balanced land use, and setting a precedent for smarter metropolitan planning.

Lifestyle advantages for communities

The advantages extend beyond mobility for residents. Walkable, mixed-use neighborhoods allow work, leisure, and home life to unfold quickly.

Reducing commute times leads to several significant benefits. It gives individuals more time to engage in healthy routines, such as exercise or preparing nutritious meals. Shorter commutes also foster more quality time to spend with loved ones, helping reduce stress and fatigue.

Transport-integrated developments offer more than simple solutions to mobility challenges.

Streets and public spaces become animated with activity, while curated retail and cultural destinations nurture a sense of belonging and identity. In these settings, convenience and vitality combine to shape places where communities thrive.

This integration transforms estates from functional clusters into inspiring districts that people identify with and proudly call home.

Shaping future-ready cities

As Philippine cities continue to densify, the role of transport-anchored estates grows in importance.

Ayala Land’s pioneering efforts demonstrate how private developers can align with national mobility projects to create a lasting impact. These estates embody resilience, adaptability, and inclusivity, essential for future-ready urban centers.

Transport-integrated developments offer more than simple solutions to mobility challenges. They establish the framework for a thriving city life where economic opportunity and human experience converge in one connected vision.

Source: Inquirer