29% of Philippine hotel rooms slated for 2026 cancelled, pipeline grows to P387 billion

Nearly three in 10 hotel rooms projected to open by 2026 were cancelled, according to a report by PHOA and LPC. The country's accommodation pipeline has expanded to 45,884 room keys across 213 projects backed by P387 billion in committed capital through 2032.

Nearly three in 10 hotel rooms that had been projected two years ago to open by 2026 were cancelled, even as the country's current accommodation pipeline has grown to P387 billion through 2032, according to a report by the Philippine Hotel Owners Association (PHOA) and Leechiu Property Consultants (LPC).

Of the 20,509 room keys identified in the 2024 Philippine Accommodation Pipeline Report for opening by 2026, 29% were cancelled, while just under 6,000 were delivered on schedule. The remaining projects had either opened or were still expected to proceed after delays, with some timelines pushed back by one to two years, the report said.

PHOA and LPC cited financing failures, changes in project feasibility, and missed residential presale benchmarks among the reasons for project cancellations. The report also said material prices had risen by roughly 30%, forcing some projects back into cost engineering, while financing approvals took longer to complete.

The findings come as the country's accommodation pipeline has expanded to 45,884 room keys across 213 projects scheduled between 2026 and 2032, backed by P387 billion in committed private capital. Compared with the 2024 report, committed capital increased by 55% from P250 billion, while the number of tracked projects rose by 35% from 158. Planned room capacity increased by 14% from 40,084 keys.

However, the report cautioned that not all projects in the latest pipeline would necessarily be completed, particularly those that have yet to break ground. “Not all of them will be built,” the report said, adding that forward supply figures are “statements of intent” and should be discounted accordingly.

The number of accommodation projects is also growing faster than planned room capacity, reflecting smaller average project sizes across a wider range of destinations, according to PHOA and LPC. In Luzon, 75% of pipeline room keys are within the Luzon Economic Corridor, while 90% of the Visayas pipeline is in destinations served by international gateways. In Mindanao, the number of tracked properties rose by 31% as average property sizes declined.

Mindanao now has 21 tracked properties, up from 16 two years ago. Cagayan de Oro has overtaken Davao as the region's largest hotel pipeline, with 1,293 planned room keys compared with Davao's 655. Baguio City's pipeline increased by 78% over two years to 1,454 room keys across 11 properties, placing it among the country's 10 largest accommodation pipelines by destination. Nationally, 70% of pipeline room keys are in destinations served by direct international flights. Central Visayas leads the national pipeline by room count, with developments concentrated in Mactan, Cebu City, and Panglao.