New brands, slower tourist arrivals to temper Metro Manila hotel rates —Colliers Intl

Metro Manila hotel rates are under pressure amid the influx of hotel brands in the country, as well as the seemingly slower growth trend of tourist arrivals, property consultancy firm Colliers International Philippines said in a report released late Thursday. 

 

Average hotel room rates across major classifications exhibited stable to declining growth by end-2014, Colliers noted in its latest research and forecast report.

 

Data from the property consultancy firm showed the average five-star room rates grew 0.3 percent, the average four-star room rates continued to decline by 3.8 percent, and the average three-star room rates dropped by 11.5 percent in the second half of 2014.

 

"As the competition among hotels intensifies, operators are forced to adjust their prices in order to attract more travelers to stay in their hotels," the report read.

 

In fact, 2,038 new hotel rooms opened in Metro Manila, bringing the total room inventory to 19,373, Colliers said.

 

Meanwhile, some 3,580 hotel rooms will be delivered annually over the next four years as hotel operators bank on improving economic conditions, it added.

 

Last year, the Philippine gross domestic product (GDP) grew 6.1 percent, after accelerated government spending helped the economy recover in the fourth quarter.

 

French-based hotel management company Accor targets to open six new projects across various locations in Metro Manila in the next two years.

 

The Wyndham group – known for its Microtel brand – will introduce its select-service hotel brand Tryp in the Mall of Asia complex in 2015.

 

Also, there are openings of hotel developments in Philippine Amusement and Gaming Corp.'s (Pagcor) Entertainment City pushed back to the first quarter of 2015 due to bottlenecks in construction, Colliers said. These are the hotels opening in the City of Dreams Manila including the Grand Hyatt City of Dreams, Nobu Hotel, and Crown Towers.

 

In terms of tourist arrivals, the number of tourists that went to the country totalled 3.96 million from January to October 2014, according to the Department of Tourism.

 

This was a 2.3 percent growth year-on-year, the lowest registered for the country since 2010, Colliers noted.

 

"If the trend continues, Colliers estimates that 4.8 million foreign tourists visited the country in 2014, far behind the government target of 6.0 million tourists," the report read.

 

With the influx of new hotel rooms and slower growth of tourist arrivals, occupancy rate in Metro Manila is seen to decline to 65.6 percent, Colliers noted. 

 

"The outlook remains rosy, however, as the country will host two significant events in 2015: the Papal Visit in January and the APEC Ministerial Meetings, both of which are expected to spur demand for accommodations in Metro Manila," it noted.

 

Pope Francis visited the Philippines last January 15 to 19.

 

Meanwhile, various APEC meetings will be held across the country starting November 2014 in preparation for the World Leaders’ Summit on November 17 and 18, 2015.

 

These areas include Pampanga, Manila, Bataan, Albay, Tagaytay City, Iloilo, Boracay Island, Bacolod City and Cebu. —KG, GMA News