SM hospitality arm allots P10B capex to expand hotel portfolio

CEBU, Philippines — SM Hotels and Convention Corp. (SMHCC), the hospitality subsidiary of property giant SM Prime Holdings Inc., is strengthening its footprint in Cebu as part of a broader national expansion plan that will add seven new hotels to its portfolio by the end of 2029.

In a disclosure to Philippine Stock Exchange (PSE) the company disclosed that rollout includes two new properties in Cebu—positioning the province as a key hub in SMHCC’s P10 billion capital expenditure program.

These developments are expected to tap into the region’s robust tourism market while leveraging synergies with SM Prime’s integrated mall and commercial assets in the Visayas.

“This expansion underscores our confidence in regional growth centers like Cebu,” said Peggy Angeles, Executive Vice President of SMHCC.

“We are building where we see long-term demand, strong tourism fundamentals, and alignment with SM’s existing ecosystem,” Angeles noted.

The expansion plan, which will raise SMHCC’s hotel count from 10 to 17 and grow room inventory by 51 percent—from 2,602 to 3,923 rooms—is entirely funded through internally generated cash flow, highlighting the group’s conservative capital structure and cash-rich operations.

Six of the upcoming hotels will operate under the Park Inn by Radisson brand, while one will carry the Radisson flag, strengthening SMHCC’s presence in the midscale to upper-upscale market segments.

The new hotels are targeted to open progressively, with 969 rooms slated for completion by 2028.

While only one of the new developments will be located in Metro Manila, the bulk of the expansion is targeted at regional economic corridors.

Apart from Cebu, new hotels will rise in Calabarzon (2), Central Luzon (1), and Laoag (1). Locations were selected based on tourism momentum and operational synergies with SM Prime’s adjacent retail and convention facilities.

Cebu, home to the existing Radisson Blu Cebu, remains a linchpin in SMHCC’s strategy. The new projects are expected to expand the brand’s reach beyond the central business district and capitalize on Cebu’s growing reputation as both a leisure and MICE (Meetings, Incentives, Conferences, and Exhibitions) destination.

“Our hotels are not just stand-alone assets—they anchor commercial activity, drive tourism, and contribute to local employment,” said Angeles.

According to Angeles, Cebu’s dynamism makes it a natural choice for continued investment.

SMHCC’s diversified portfolio spans luxury (Conrad Manila, Radisson Blu Cebu), leisure (Taal Vista, Pico Sands), and business-focused properties under the Park Inn and Lanson Place brands. The five-year expansion push reflects a broader confidence in the resilience of the Philippine travel and tourism industry, which is seeing strong post-pandemic recovery.