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Business

Metro Manila hotel occupancy slightly down

Catherine Talavera - The Philippine Star

MANILA, Philippines — Hotel occupancy levels in Metro Manila have slightly declined in the first half of the year despite the continued growth of tourist arrivals, a property services firm said.

In a report, Colliers International Philippines Joey Roi Bondoc said average hotel occupancy across Metro Manila declined marginally to 69 percent in the first half of 2018 from 70 percent in the same period last year.

“The figure approached the upper-end of our occupancy forecast of 65 percent to 68 percent for 2018,” Bondoc said.

This was despite the rise in international arrivals in the first six months of the year to 3.7 million, a 10.4 percent rise from the 3.35 million in the same period last year.

For the first six months of 2018, Colliers saw Makati CBD’s average occupancy drop to 67 percent compared to the 71 percent recorded in the same period in 2017. The Bay Area’s occupancy slipped from 70 percent to 69 percent. 

In contrast, among the sub-locations that posted higher occupancy in the first half were Quezon City (66 percent from 62 percent), Pasig-Mandaluyong Area (71 percent from 70 percent), and Fort Bonifacio (79 percent from 77 percent).  

Bondoc earlier said occupancy levels are expected to be lower this year due to the number of completion of new hotel rooms.

In the first six months of the year, about 1,700 new hotel rooms were completed in Metro Manila, already surpassing the 1,580 new rooms that opened in 2017. Four- and five-star hotels accounted for more than 60 percent of the new units that were completed in the period.

“For the remainder of 2018, Colliers expects the completion of about 1,100 new hotel rooms,” Bondoc said.

Among the new hotels due to be completed in the second half of the year are Seda BGC Tower 2, Sheraton Hotel Manila, and Hilton Manila. Nearly half of the new hotel rooms are scheduled to be in the Newport City; about 30 percent in Fort Bonifacio; and the remaining 21 percent in Makati fringe.  

“Barring any construction delay, Colliers expects the completion of a record-high 2,800 new hotel rooms across Metro Manila in 2018,” Bondoc said.

Colliers said it is retaining its occupancy forecast of between 65 percent and 68 percent for 2018 given the significant number of completions this year. 

“From 2019 to 2021, we see average occupancy rebounding to between 68 percent and 70 percent as the delivery of new hotel rooms tapers off,” Bondoc said.

“The record-high take up of office space (about 641,000 sqm or 6.9 million sq ft as of 1H2018 already breaching the 2017 total of 638,000 sq m or 6.87 million sq ft) across Metro Manila should also contribute to higher hotel occupancy in the country’s capital over the next two to three years,” he added.

JOEY ROI BONDOC

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