SM ramps up hotel development

MANILA, Philippines — SM Prime Holdings Inc. is aggressively expanding its hospitality portfolio with seven new hotel projects that will add over 1,300 rooms to be completed by the end of 2029.

The expansion will raise SM Hotels and Convention Corp. (SMHCC)’s hotel count to 17 from 10 and boost total room inventory to 3,923 from 2,602.

SM Prime said that majority of the new inventory or 969 rooms would be for delivery by 2028.

The company said that six of the new hotels would carry the Park Inn by Radisson brand, while one will be developed under Radisson.

In terms of location, only one of the new SM hotels will be in Metro Manila.

The rest are strategically distributed in regional growth corridors, with two in Calabarzon, one in Central Luzon, two in Cebu and one in Laoag.

SM Prime said the locations were selected based on tourism potential and integration with its existing assets.

The expansion is expected to reinforce SMHCC’s position in the midscale and high-end segments.

Supported by a P10-billion capital expenditure program, SMHCC’s five-year growth plan will be fully funded through internally generated cash flows.

“This rollout reflects our belief in the long-term potential of the Philippine domestic travel and tourism market. We are building on the strength of regional tourism while delivering quality accommodations that enhance the value of our ecosystem of malls, events spaces and mixed-use developments,” SMHCC executive vice president Peggy Angeles said.

SMHCC’s hotel portfolio are currently categorized as luxury (Conrad Manila and Radisson Blu Hotel Cebu), leisure (Taal Vista and Pico Sands) and business hotels (Park Inn by Radisson and Lanson Place Mall of Asia).

“Our hotels serve as catalysts for local economic activity. We are focused on creating long-term value – through jobs, tourism flows and sustained growth that enhances SM Prime’s diversified revenue base,” Angeles said.