Philippines Targets 120,000 New Hotel Rooms by 2028

STR reported China hotel data for the week ended October 12th. China hotel RevPAR was down -20.9% year over year, up against a tough +73.4% comp last year. There was a calendar shift from Golden Week so that may have played a part in the results. Occupancy for the week was down -14.8% year over year while ADR was down -7.2%.

CoStar/STR said Brisbane's hotel market reached unprecedented heights in September 2024 with average daily rate and RevPAR hitting all-time highs. The growth was attributed to a series of high-profile events that drew significant visitor numbers including the Brisbane Festival, Brisbane Lions AFL elimination final and multiple conventions at the city's Convention Center. Occupancy was up 3.3% to 78.5% in September while ADR rose 1.7% to A$236.64 resulting in a RevPAR gain of 5% to A$185.82. The highest ADR for the month was September 7th at A$288.01 while occupancy was 87.4%, the second highest of the month. September 18th had the highest occupancy at 87.9% as the Brisbane Festival overlapped with the second day of the National Bus & Coach Show. There were only four days in the month when occupancy fell below 70%. CoStar said early data through October 9 shows occupancy already up 4 percentage points than the same time last year, at 64%.

The Philippines' Department of Tourism released a detailed action plans that targets the addition of more than 120,000 new hotel rooms by 2028 in order to keep up with surging tourism demand. The Philippine Hotel Industry Strategic Action Plan 2023-2028, compiled in partnership with the Philippine Hotel Owners Association, outlines the need to accelerate infrastructure upgrade and expansion of hotel rooms across the country with the aim of reaching 456,000 hotel rooms by 2028. There are currently 335,592 rooms in 18,818 hotel establishments nationwide, a shortfall of 120,463 from the four year target. Annual tourism arrivals will reach 11.5 million by 2028 with the PHISAP projecting this will require at least 456,055 hotel rooms. The roadmap suggests high demand in places like Central Luzon, Cavite-Laguna-Batangas-Quezon, Davao Gulf and coast and the Bicol region with medium demand seen in areas of Cotabato-Sarangani, Metro Manila and Rizal, Surigao-Dinagat Islands and Cagayan de Oro coast and hinterland. A separate PNA report said the DOT is increasing efforts to attract tourists from South Korea, the USA and Japan amid concerns the Philippines will not hit its target of 7.7 million visitors in 2024. They believe issues around visas, particularly in relation to visitors from China, were impacting visitor numbers with 4.43 million arrivals as of September. Between January and September of 2019, there were 1.35 million Chinese visitors to the Philippines. In the same period this year, that number is only 260,134.

JLL said Asia Pacific hotel investments will total $12.2 billion for full year 2024, up 4.3% year on year, as an influx of investment activity, a more favorable interest rate environment and generally supportive macro and microeconomic developments will positively impact sentiment in the sector regionally. In the first 9 months of 2024, cumulative transaction volumes totaled $9.05 billion, up 15% year on year, representing 90% of the volume in 2019. JLL said led by Japan, cross-border investment surged in YTD September 2024, driven by large transactions in Asia, while Australia experienced a rare lull in annual activity. JLL said ADR in Asia Pacific is up 19% in local currencies since the last cyclical peak in 2018-2019 but most markets still have room to increase occupancy back to pre-pandemic highs given some strong business travel offsetting pull back in leisure travel. JLL believes the last leg of occupancy may take longer to come back with MICE still slower to return and Mainland China still facing lingering economic issues in the short term.

The Mekong Delta province of Bac Lieu in Vietnam is focusing on strengthening connections and promoting tourism highlights to visitors. Total tourism in Bac Lieu so far this year reached VND3.4 trillion, an increase of 9.1% compared to the same period last year. The number of tourists was up 14.2% year on year to 4.1 million. Bac Lieu is striving for 4.9 million visitors and revenue of VND4.1 trillion in 2024. Tourism promotion will be enhanced in Hanoi, HCM City, other key domestic tourism markets and in countries like the US, Japan and South Korea.

Wyndham Hotels & Resorts announced they signed an exclusive development agreement with NILE Hospitality LLP to introduce its Microtel by Wyndham brand to India, marking the eighth Wyndham brand to debut in the country. The strategic alliance enables Wyndham to leverage a leading third party developer and operator to brings it brand to India. Wyndham and NILE expect to open 40 Microtel hotels by 2031, all to be direct franchisees of Wyndham, part of its growth strategy. Wyndham currently has 60 hotels open throughout India and expects to grow by at least 25% in the next 18 months. Wyndham's agreement with NILE will see development of the brand in key Tier II, III and IV cities, in line with India's infrastructure development cycle, with the first hotels opening in 2025, each with a minimum of 50 keys featuring meeting and social spaces, gyms and other facilities based on the needs of the region. The Microtel chain has more than 360 economy hotels located throughout North America, Asia, and New Zealand.

Hospitality fund manager Salter Brothers has bolstered its portfolio of boutique country lodges and luxury coastal retreats in Australia after buying three Bannisters hotels in Mollymook and Port Stephens on the NSW South and North Coast for over $100 million. The acquisitions include two famous seafood restaurants in Mollymook and Port Stephens, operated by celebrity UK chef Rick Stein within the hotel complexes alongside a number of pubs, bars and spas. This comes as Salter Brothers is working on plans to potentially float a separate $2 billion portfolio of mostly IHG-operated CBD hotels including properties such as the five-star InterContinental Rialto Melbourne, Crowne Plaza Coogee and voco Gold Coast. The three Bannisters hotels will be added to its unlisted Hospitality Retreat Fund, which currently houses 13 properties and 407 guest rooms, including six Spicers Retreats resorts and the Spicers Retreats brand, which were acquired in 2022 for about $130 million from Flight Centre co-founder Graham Turner and his wife Jude. The Bannisters properties comprise the 34-room hotel, Bannisters by the Sea and 33-room Bannisters Pavilion in Mollymook as well as Bannisters Port Stephens which has 78 guest rooms. While Salter Brothers would not comment on the price paid for the hotels, sources indicated the three hotels sold for more than $100 million. Salter Brothers Hospitality will manage the three hotels. The off-market deal was negotiated by Savills alongside MinterEllison, consultants Napier & Blakeley and Ernst & Young.

Housing Development Corporation opened applications for Expressions of Interest to develop three high-tier hotels in the Urban Isle of Hulhumale, Maldives Phase 2's Integrated Tourism Zone. The hotels will be developed with the latest facilities and quality services tailored to tourists who visit the country. The state-owned company will favor applicants wanting to adopt a lease model but other models are welcome in the applications. Last month, HDC also opened up applications to develop boutique hotels in Hulhumale Phase 2.