Strong Signals from Tourism and Demand
Colliers reports that Cebu’s hotel and leisure sector is performing well. Even though foreign arrivals have slightly declined in early 2025, domestic visitors are making up much of the shortfall, staying longer, spending more, and driving stable occupancy rates. Cebu hotels are now back to roughly pre-pandemic occupancy levels, varying between 50% and 80% in key destinations outside Metro Manila. BusinessWorld
Major Projects on the Horizon
From 2025 to 2028, nearly 4,000 new hotel rooms are expected to be delivered in Cebu. Around 65% of this new supply will come from foreign-branded hotels, including names like Fairfield by Marriott, Radisson, Pullman, Sofitel, Mercure, Citadines, and others. BusinessWorld
These new developments are largely driven by two factors:
- The resurgence of domestic tourism and business travel
- Foreign brands partnering with local developers to meet increasing demand for high-quality hospitality in Cebu’s business and tourism corridors BusinessWorld
Investment Appeal for Hoteliers and Developers
For investors and developers, Cebu’s current climate offers several advantages:
- Stable and recovering hotel occupancy and daily rates offer assurance of viable returns
- The dominance of foreign branded hotels in new developments suggests premium positioning and potential for higher yield
- Improving infrastructure and road network expansion in Cebu and nearby islands enhance accessibility for leisure and business tourism BusinessWorld
Risk Considerations
While growth looks promising, developers should keep in mind:
- The international arrivals are yet to fully rebound, which can affect foreign-oriented hotel rooms
- Competitive pressure from many new rooms coming online by 2028 may compress margins, especially in mid-tier hotel segments
Why This Matters for Cebu
Cebu is reinforcing its reputation as a top destination for both tourism and business. With nearly 4,000 rooms in the pipeline and strong local demand, the province stands to benefit significantly from increased investment, job creation, and enhanced services. Quality hospitality developments will also support Cebu’s wider economy through tourism, MICE (meetings, incentives, conferences, and exhibitions), and lifestyle-oriented growth.
If you are considering participating in Cebu’s hotel sector boom — whether through ownership, development, or investment — now is the time to explore opportunities. Reach out to Gabriel Realty & Brokerage to assess viable hotel projects and parcels suited for hospitality developments.
Credited Sources: https://www.bworldonline.com/property/2025/09/23/700018/cebus-hotel-sector-positioned-for-more-developments-colliers
