Hotel Growth in the Philippines Set for a Luminous Future

25.08.2023 - 14:25 / skift.com / Sean Oneill / Chris Nassetta

Here are some excerpts from Daily Lodging Report from the past week. If you’re not a subscriber, you should be. Get news on hotel deals, development, stocks, and career moves. Sign up here, now.

Deutsche Bank Research said the lodging sector still had green shoots lingering as it relates to group and business transient travel. But they are taking a cautious approach to 2023 as they believe current consensus forecasts embed a continued recovery in both group and business transient demand to and through 2019 levels while valuation multiples resemble earlier cycle multiples, relative to DB’s view the sector is actually late in an abbreviated cycle. Further, DB does not believe macro factors are present in either 2023 forecasts or valuations. That includes corporate cost scrutiny in a recessionary environment or shrinking household savings. DB believes HLT and CHH represent better, relative risk rewards in 2023 even as investors have prioritized operating leverage among H and MAR. DB also questioned the aggressive share repurchase capital return moves by companies like HLT and MAR in this current environment. DB is forecasting 2023 US industry RevPAR growth of 1.6% with demand growth of 3.9% and supply growth of 0.8%.

The Wall Street Journal published a very positive article on Hilton, including an interview with CEO Chris Nassetta. The summary is that Nassetta said their hotels are busy worldwide as travel restrictions ease. He also feels Covid-19 likely caused people to renew a priority for in-person connections.

Marcus Hotels & Resorts sold the Skirvin Hilton in Oklahoma City for $36.75 million to Ortus Hotel Investments, LLC, the Chickasaw Nation, Paul Self, and other local investors.

Skift Note: About 70 percent of U.S. economists now predict a U.S. recession in 2023, according to a survey Bloomberg News published this week. Deutsche Bank joins other research firms in guessing how well hotel companies will withstand any potential downturn in the U.S. and worldwide.

Colliers is recommending developers in the Philippines line up various hotel projects to capture the surge in local and foreign tourists, reported the Manila Times. From 2022 to 2024, Colliers expects an annual average completion of 2,650 hotel rooms in the capital region, up from the average of 930 rooms delivered annually from 2019 to 2021. About 40% of the new rooms to be completed will carry a foreign brand.

Alliance Global Group, Inc. will speed up its growth in the Philippines, opening hotels in new tourism areas and additional townships which have large-scale integrated real estate developments.

Philippines‘ homegrown hotel brand Seda is bouncing back in the post-pandemic era and will soon add another 550 rooms to its portfolio by