Cebu eyes 4K new hotel rooms

CEBU has emerged as one of the strongest-performing hotel markets outside Metro Manila, with occupancy levels back at pre-pandemic highs and room rates rising, according to Colliers International.

The recovery has been fueled by resilient domestic tourism, with Cebu remaining among the most visited destinations in the Philippines. Colliers expects occupancy to hold steady on the back of both leisure and business travel demand.

Hotel occupancy in key destinations outside Metro Manila, which plunged to as low as 10 percent to 40 percent during the pandemic, has since rebounded to 50 percent to 80 percent as of end-2024, with Cebu leading the resurgence.

The upbeat market outlook has prompted property developers and foreign brands to step up investments. Nearly 4,000 new hotel rooms are set to be delivered in Cebu between 2025 and 2028, with global chains such as Radisson, Marriott, Accor and Hilton expanding their footprint.

“Hotel and leisure-themed developments in Cebu are benefiting from improving connectivity, particularly along the Cebu-Bohol corridor,” Colliers said, noting that infrastructure upgrades are making the region more attractive to investors and travelers alike.

Despite sluggish foreign arrivals — 3.96 million in the first eight months of 2025, down 1.6 percent from a year earlier — domestic tourism has been a key growth driver. The Philippines accounted for more than a third of Southeast Asia’s domestic travel spend, with expenditure rising 16.4 percent to P3.1 trillion ($55 billion) in 2024. Cebu alone attracted four million domestic overnight travelers that year.

Colliers cautioned that new supply could put pressure on three-star room rates, but said Cebu’s tourism fundamentals remain solid. Tourists are also spending more and staying longer, with average expenditure per arrival climbing to $2,073 in 2024 from $1,218 in 2019. / KOC