SM invests P8B to make Cebu a global events hub

CEBU, Philippines — SM Prime Holdings Inc. is doubling down on Cebu with an P8 billion investment in an integrated entertainment, convention and hospitality complex, betting that the province’s economic growth and tourism potential will fuel a new wave of demand for global events, sports competitions and business gatherings.

The investment is anchored by the newly opened 25,000-seat SM Seaside Cebu Arena, the centerpiece of a mixed-use development at the South Road Properties (SRP) that also includes an SMX convention center and two hotels under the Park Inn and Radisson brands.

“The developments you’re seeing are only the initial phase,” Hans Sy, chairman of the executive committee of SM Prime, told reporters after the arena’s opening. “We still have the convention center. We still have the hotels that are all coming. You will see many more.”

The expansion signals SM Prime’s growing commitment to Cebu, where rising tourism, a rapidly expanding consumer base and sustained infrastructure investments have reinforced the island’s position as the country’s leading regional growth center outside Metro Manila.

The integrated complex is designed to transform Cebu into a destination for international concerts, sporting events, conventions and exhibitions, allowing the province to diversify beyond its traditional leisure tourism market while generating demand for hotels, airlines, restaurants, transport services and retailers.

The billionaire businessman said sports tourism remains an underdeveloped segment with significant growth potential.

“Sports tourism is something that we have missed out, and that is one of the things that we will fully support,” he said.

The company is already exploring opportunities to host international volleyball and women’s basketball championships, with Cebu positioned to stage championship matches after preliminary rounds in Manila.

Sy also said SM aims to attract more global concert tours by leveraging its entertainment venues in both Cebu and Metro Manila.

The Cebu Arena, built on a 19,000-square-meter site with about 70,000 square meters of gross floor area, accommodates up to 25,000 spectators, making it larger than the SM Mall of Asia Arena. It features 30 premier suites for corporate clients and VIPs, a dedicated practice court and upgraded seating configurations designed to meet international event standards.

Chico Sy, president of SM Engineering, Design and Development Corp., said the adjacent SMX convention center is scheduled for completion by year-end, with its first events expected in the first quarter of next year.

The Park Inn and Radisson hotels are targeted to open in the first half of 2028, completing an integrated development intended to serve Cebu’s expanding meetings, incentives, conferences and exhibitions (MICE) industry.

“We wanted to make sure we’re able to give affordable accommodation and also very good luxury accommodation,” the younger Sy said, referring to the two hotel brands that will cater to different market segments.

Hans Sy said the project reflects SM’s decades-long conviction that Cebu would emerge as one of the country’s most important economic centers, crediting the late founder Henry Sy Sr. for acquiring the SRP property more than two decades ago.

“My father has always believed in Cebu,” Hans Sy said.

He added that the company is studying similar arena-led developments for future township projects, although no new location has been identified.

“This was done 20 years ago when we had big pieces of land,” Sy said. “I’m sure this won’t be the last. We’re still looking for a very big property.”

For SM Prime, the P8-billion investment is more than an expansion of its property portfolio. It is a strategic wager that Cebu’s economic momentum, improving connectivity and growing tourism industry can sustain world-class infrastructure that attracts international entertainment, business events and sporting competitions, reinforcing the province’s emergence as a regional destination for investment and tourism.