By Louise Maureen Simeon
(The Philippine Star) | Updated October 28, 2015 - 12:00am
MANILA, Philippines - The
merging of international hospitality brands and Filipino property developers is
contributing to the growth of hotel residences real estate market in the large
part of the Southeast Asian (SEA) region.
A new research by
Asia-based hospitality consulting group C9 Hotelworks showed SEA hotel
residences market has topped the P749 billion level, while the Philippines alone
has P158 billion worth of properties for sale.
“The historic pattern of
hotel and real estate marriages has moved away from the beach and leisure
destinations and is gaining traction in urban city offerings. Traditional
lifestyle buyers are being supplanted by end users, with Asian’s representing
the largest transaction segment,” C9 Hotelworks managing director Bill Barnett
said.
C9 Hotelworks revealed that
there are over 28,000 hotel branded residential units for sale across seven SEA
nations represented by nearly 120 projects.
In the Philippines, market
size is reflected in a supply of over 11,000 residential units with Metro
Manila and Boracay as the top two locations. Average price for urban properties
is at P196,547 per square meter (sqm) and P189,276 per sqm for resort destinations.
Barnett added that one key
catalyst for the rising tide is the increasing number of mixed use projects
that contain hotel and real estate components.
“What is clear in looking
at the landscape is that rapidly escalating land prices are driving developers
to embrace mixed-use projects in increasing numbers, and often add in
commercial, sporting and tourism attractions as part of broader lifestyle
offerings,” he said.
The report highlighted a
refocus by global hotel chains who have realized that in order to spur growth,
there is an essential need to partner with property developers in hotel
residence offerings.
“Asia and the Philippine
property cycles have typically seen these type of investment driven projects at
the top of markets in the mid 1990s and again in the mid-millennium, hence
history is recreating itself, yet this time out at a considerably higher
scale,” Barnett said.
A growing number of new
projects coming into the Philippines will include hotel brand alliances such as
AppleOne Properties that will sign with global Starwood Group for a new
Sheraton in Cebu.
Aside from the hotel
component, the mixed-use development has 182 condominium units with one, two
and three-bedroom types.
“It’s clear that a
significant number of projects now contain both traditional accommodation
elements and real estate components. It’s forecast that a large push into
resort properties will occur in the next two to three years in the sector,”
Barnett noted.
_________________________________________________________________
