The Philippine hotel market is unlikely to attract new investors in the mid-term given the industry’s projected slow recovery, a property consultancy said.
Lobien Realty Group chief executive officer Sheila Lobien said, “In terms of investment, the sector is not an attractive investment right now.”
She noted a number of hotels are just surviving right now, adding many hotel facilities are repurposing use as a quarantine space or temporary offices.
At present, international tourists are still not allowed to enter the country due to travel restrictions brought about by the pandemic.
In 2020, international visitor arrivals dropped by 84 percent to 1.3 million from 8.2 million arrivals in 2019.This translated to an 83 percent drop in inbound tourism receipts for the year to 81 billion pesos.
However, Lobien said international investors continue to look at the Philippines for joint venture projects in other real estate asset classes such as office and residential.