The Philippines will open 4,300 hotel rooms in the fourth quarter of this year, with a total of 5,210 rooms expected to be added in 2025 as the nation’s tourism sector maintains its steady recovery, according to Leechiu Property Consultants (LPC).
The tourism sector is poised to sustain its growth, led by a surge in domestic travel, new hotel developments and anticipated improving investor sentiment following the passage of the 99-year foreign lease law, LPC said.
While international arrivals remain below pre-pandemic peaks, domestic travel is surging toward historic highs, establishing a solid foundation for long-term tourism growth and investment confidence. Domestic tourists are projected to reach 58.7 million in 2025, rising further to 62.2 million in 2026, a trajectory supported by the growing economy.
Over the past two decades, domestic tourism spending has outpaced GDP, underscoring the sector’s resilience and capacity to drive nationwide economic activity.
Rising travel demand has spurred a wave of hotel development, with the majority of the new keys led by domestic operators. This reflects local developers’ agility in capturing demand across destinations such as Metro Manila, Cebu, Boracay, Davao and Palawan.
The newly approved 99-year lease law has created a strong foundation for long-term tourism investment by providing global investors with the security to pursue large-scale resort and mixed-use developments. Over time, the law is expected to catalyze foreign direct investment inflows into tourism and hospitality, similar to trends observed in the Maldives.
More global family offices, private equity firms and sovereign wealth funds are expected to explore opportunities in Philippine tourism assets, drawn by the country’s young demographics, natural beauty, and improving investment framework.
New capital is expected to target branded resorts, lifestyle communities, and REIT-ready hotel portfolios in well-connected growth nodes such as Cebu, Clark and Palawan.
“The convergence of rising domestic tourism, increased flight connectivity, and the 99-year lease reform marks a new era of opportunity for the Philippine tourism sector,” LPC said.
“As investors refocus on long-duration assets, the country’s hospitality and leisure industries are expected to see renewed capital flows and expanded capacity through 2026.”
LPC director of hotels, tourism and leisure Alfred Lay said the sector is poised to strengthen its position as a key investment area and a vital pillar of the Philippine economy.
“With the anticipated growth in domestic and long-haul tourism, along with increased hospitality FDIs driven by the newly-approved 99-year lease to foreign investors, the tourism sector is poised to strengthen its position as a key investment area and a vital pillar of the Philippine economy,” Lay said.
