Five Philippines luxury hotels bag Michelin Guide awards

Five luxury properties in the Philippines were honored by the website of the prestigious Michelin Guide.

The France-based travel guide awarded the “Michelin Key” distinction to Amanpulo in Palawan, Dusit Thani Mactan Cebu Resort, Fairmont Makati, Nay Palad Hideaway Siargao and Raffles Makati, according to information from its website.

They all earned “One Michelin Key,” which “set the standard for excellence in Filipino hospitality.” Based on the Michelin Guide, “One Key” denotes “a very special stay,” where “service always goes the extra mile and the hotel provides much more than others in its price range.”

It added the “One Michelin Key” was similar to the “Michelin Stars” awarded to restaurants, wherein a recommended hotel or resort could be given as much as “Three Michelin Keys.”

“As the Michelin Guide broadens its recognition to include outstanding stays, the Philippines debuts on the Michelin Key stage with properties that reflect the nation’s unparalleled warmth and natural beauty,” wrote the guide on its website.

It added, “Each hotel, from city landmark to island escape, offers an experience as memorable as the country itself.”

The five luxury properties awarded each with a “One Michelin Key” were among the 20 hotels and resorts recommended by the Michelin Guide, which also includes Admiral Hotel Manila – MGallery, Hotel Okura Manila at Newport World Resorts, Manila Marriott Hotel at Newport World Resorts, Shangri-La The Fort Manila, Solaire Resort

Entertainment City, The Peninsula Manila, Crimson Resort & Spa Mactan, Dusit Thani Mactan Cebu Resort, NUSTAR Hotel Cebu, City of Dreams – Nobu Hotel Manila, Grand Hyatt Manila, The Westin Manila, Piece Lio El Nido, The Funny Lion El Nido, Sheraton Cebu Mactan Resort and The Lind Boracay.

The Michelin Guide also announced the launch of its expansion to Manila and Cebu on Oct. 30, 2025, wherein its inspectors would “seek out the most exceptional dining destinations” in Manila and neighboring Pampanga, Tagaytay and Cavite, as well as Cebu.

Source: Philstar

PHL hotels may see revenue boost in 2025

Philippine hotels are projected to see revenue growth this year, driven by demand from international visitors, according to hotel e-commerce platform SiteMinder.

“The rise in room rates, fueled by strong international bookings, provides a solid foundation for Philippine hotels to maximize revenue in 2025,” Bradley Haines, regional vice-president for Asia-Pacific at SiteMinder, said.

Philippine hotels saw a 2.91% uptick in their average daily rate (ADR) to $125.03 in 2024 from $121.49 in 2023, according to SiteMinder’s Hotel Booking Trends Report. The ADR for local hotels peaked at $144 in December.

Last year, the Philippines was the only country to post double-digit growth in international hotel bookings at 13.6%, rising to 54.44% from 47.94% in 2023.

“Our data show a strong upward trend in international arrivals at Philippine hotels, with their share of bookings rising steadily from 16.54% in 2021 to 54.44% in 2024 — a notable 229% increase. This momentum suggests continued growth this year.”

Local hotels have been an attractive choice for foreign travelers as they offer both year-round appeal and experience-driven stays, according to Mr. Haines.

Foreign tourists booked their stays at Philippine hotels an average of 25 days in advance last year, up from 23 days in 2023. This was the second-highest lead time in Asia, behind Thailand (27 days).

About 89% of 2024 stays at Philippine hotels averaged up to two nights, while 11% lasted three nights or more, surpassing most Asian markets.

SiteMinder data showed a “less pronounced” gap in bookings between the December peak (9.73% of total bookings) and the September low (7.34%), suggesting that hotel bookings are more consistent throughout the year than seasonal.

However, around 16% of bookings at local hotels were canceled, a slight (2%) uptick from last year.

To sustain growth momentum, Philippine hotels must focus on data-driven strategies and respond to changing traveler preferences, according to Mr. Haines.

“Local hotel operators that leverage market intelligence to understand when and where guests are booking, along with dynamic pricing to capture demand more effectively, will be better positioned for growth.”

In its latest Changing Traveller Report, SiteMinder expects the continued boom of event travel and “workcations” this year.

Data showed that 65% of global travelers said they are likely to travel for concerts, sports tournaments, and festivals. Likewise, 41% plan to work during their stay.

SiteMinder also reported that 36% of travelers globally look up hotels via search engines, followed by online travel agencies (18%), online forums (11%), social media (11%), friends or family (7%), travel fairs (5%), and online travel blogs (5%).

According to the report, 46% plan to book a standard room for their 2025 stays, followed by a superior room (33%), deluxe room (14%), executive room (4%), and suite (3%). About 24% return to hotels for loyalty benefits.

Booking.com and Agoda were the top booking platforms for Philippine hotels last year, according to SiteMinder. Direct bookings remained strong, being the third-largest source of revenue for local properties.

Other popular booking platforms for foreign tourists include Expedia Group, Trip.com, Hotelbeds, Klook, DidaTravel, WebBeds, Tiket.com, Traveloka, and MG Bedbank.

Source: Business World

Asia Pacific Hotels & Hospitality Sector Trends 2024

With the Asia Pacific hotel market continuing to undergo structural change, hotel owners and operators are fine-tuning operational and branding strategies. Increased labour and utilities costs, limited new supply, and the prolonged peak of the interest rate cycle are among the driving factors. 

Major global hotel operators are expanding rapidly across the region, with almost half of the new hotels in the development pipeline being developed in conjunction with five hotel groups: Marriott (60,566 rooms), Accor (47,052 rooms), IHG (34,227 rooms), Hilton (31,606 rooms) and Wyndham (21,455 rooms). These operators continue to invest in loyalty programmes and niche segments to capture market share while also significantly expanding their technological capabilities.

Despite prolonged high interest rates globally, hotel investment in Asia Pacific has been resilient, driven by continued interest in Japan and Australia, a record-breaking year for serviced residence sales in mainland China, and a steady flow of deals in a strongly performing Korea market. 

This report explores the key trends impacting the hotel sector in Asia Pacific, including an analysis of the current market landscape, the latest activities of the major operators, asset management and investment trends, and ESG considerations.

Key Trends

Operators keep daily rates elevated as a result of limited supply, elevated demand and rising labour costs: While hotels have successfully adapted to lower levels of applicants and staffing, new labour-related issues present a challenge to owners and operators. With this challenge expected to persist for the rest of 2024, operators will look to keep daily rates high to capture some of these losses on balance sheets.

Major global operators continue to expand aggressively, with increased emphasis on lifestyle brands: With the ‘big 5’ operators expanding their global market share from 20% to 24% over the past six years, the trend is set to continue as the push for greater presence across all segments continues.

A large part of this strategy is the expansion into the lifestyle sector, with the brand loyalty programs, avant-garde design and wellness initiatives driving the demand.

Investment robust despite debt-related headwinds; investors maintain preference for upscale+ branded assets: Amid ongoing capital market dislocation, the upscale+ segment has emerged as the most appealing segment for hotel investors in Asia Pacific. This has been driven by growth in global wealth and travellers’ willingness to spend more on accommodation following the prolonged border closures witnessed during the pandemic.

Adoption of Sustainability / ESG initiatives continues; hotels with strong ESG initiatives set to outperform: The Asia Pacific hotels and hospitality industry’s commitment to ESG initiatives continues to gain momentum. Rising energy costs, which have increased significantly since the onset of the pandemic, along with further commitment to ESG initiatives are set to accelerate the industry’s focus on sustainability. Other supportive factors include a shift in guests’ preferences toward more sustainable tourism, along with growing demand for disclosure around climate risk.

asia-pacific-hotels-hospitality-sector-trends-2024.pdf

Download PDF • 3.58MB

Source: CBRE