THE opening of the 25,000-seat SM Seaside Cebu Arena marks only the beginning of SM Prime Holdings Inc.’s broader expansion in Cebu, with the company planning more mixed-use developments as it invests about P8 billion in an integrated tourism and entertainment complex in the South Road Properties (SRP), top executives said on Thursday, July 9, 2026.
SM Prime president Jeffrey Lim said the integrated development is expected to provide a significant boost to Cebu’s economy by attracting international concerts, sporting events and large-scale productions that will increase tourism, encourage longer visitor stays and create jobs across related industries.
“Ultimately, our integrated estate will strengthen Cebu’s tourism economy by encouraging longer stays, repeat visits and job creation across allied industries,” Lim said during the arena’s official opening.
He said the arena is designed not only as a world-class entertainment venue but also as an economic catalyst for Cebu and the Visayas. As part of the South Coast City township, it will be integrated with SM Seaside City Cebu, future hotels and convention facilities, allowing organizers to combine concerts, sporting events and conventions into multi-day tourism experiences.
Cebu as alternative destination
Lim said the project positions Cebu as an alternative destination for international artists and promoters, reducing Metro Manila’s long-standing dominance in hosting major entertainment events.
“We can finally tell the world that the Queen City of the South is ready to become a major stop for concerts, sports and touring productions across the globe,” he said.
“For many years, Luzon was the default stage for the country’s largest and most iconic productions. Here in Cebu, that story begins to change with the formal launch of the SM Seaside Cebu Arena.”
Citing SM Prime’s experience operating the SM Mall of Asia Arena, Lim said the Cebu facility has the capacity, technology and operational expertise needed to host world-class productions while providing a safe and seamless experience for artists, audiences and production crews.
He added that combining live entertainment with Cebu’s beaches, heritage sites and hospitality would encourage visitors to extend their stay and further strengthen Cebu’s position as a regional tourism destination.
Long-term vision for Cebu
Business tycoon Hans Sy, chairman of the executive committee of SM Prime, said the arena reflects a long-term vision that began about two decades ago when the company acquired large tracts of land in Cebu.
“This was planned 20 years ago when we had big pieces of land. I’m sure this won’t be the last. There should be more developments coming. We’ve been into township development, so definitely this will be part of it,” he said.
Sy said SM’s confidence in Cebu traces back to the late founder Henry Sy Sr., who believed in the province’s long-term growth potential.
“My father has always believed in Cebu. We had a small one downtown, and when he had the opportunity to buy the South Road Properties reclamation property, he always believed in Cebu. I just followed his direction,” he said.
Sy said the arena forms part of SM Prime’s broader township strategy, with the company continuing to seek large landholdings for similar mixed-use developments elsewhere.
“What you’re seeing now is only the initial development. We still have the convention center and the hotels that are all coming. You will see many more,” he said.
P8-billion project in SRP
The SM Seaside Cebu Arena officially opened on Thursday. The P7-billion facility spans more than seven hectares of gross floor area and can accommodate up to 25,000 guests.
Chico Sy, president of SM Engineering, Design and Development Corp., said the company is investing about P8 billion in the integrated complex, which includes the arena, the SMX Convention Center, two hotels and related facilities.
“Right now we’re really tracking about P8 billion for the entire complex,” he said.
The hotel component is expected to open in the first half of 2028.
“Our hotel target is the first half of 2028. A hotel building takes about a year to fit out, so it’s well in progress,” Chico Sy said.
The complex will include Park Inn by Radisson and Radisson hotels, offering both midscale and upscale accommodations to support Cebu’s expanding meetings, incentives, conferences and exhibitions industry.
“We wanted to make sure we’re able to give affordable accommodation and also very good temporary luxury accommodation. We wanted to give options to the market,” he said.
International concerts, sporting events
Beyond the integrated estate, Sy said the company aims to make the arena a venue for major international concerts and sporting events, including performances by globally known artists with Filipino heritage, such as Bruno Mars, as well as international basketball and volleyball tournaments.
“I wanted everybody, the Filipinos, to be proud. That’s why I’m looking for artists who are one way or another connected with the Philippines,” he said.
Sy said having world-class venues in both Metro Manila and Cebu would strengthen the country’s ability to host international events, allowing organizers to stage preliminary rounds in Manila before holding championship matches in Cebu.
He also underscored the arena’s potential to expand sports tourism, saying the facility incorporates improvements over the SM Mall of Asia Arena, including a dedicated practice court and a seating design that provides higher capacity and a better viewing experience.
“Sports tourism is something that we have missed out and that is one of the things that we will fully support,” he said.
Chico Sy said the arena could transform Cebu into a destination for international entertainment by combining major concerts with the province’s tourism attractions.
“Imagine a K-pop concert in Cebu. People from Korea, Indonesia and Singapore will also consider coming because you have a beautiful venue here for the concert and you have a beautiful island. Combining that concert with the island, that tourist combination, I think that’s wonderful,” he said.
Despite global uncertainties, Chico Sy said SM remains confident in Cebu’s long-term prospects.
“We believe in Cebu’s ability to organically grow. We’re trying to show Cebu it can be done because we can deliver a global-caliber venue. We believe this can inspire others to invest and develop their own businesses,” he said. / KOC