It’s a real, significant vote of confidence on the potential of Philippine travel and tourism.
That Marriott International Inc. is tripling its footprint in the Philippines with the addition of 21 more hotels in just five years, and even bringing some of its most premium brands such as the swanky Ritz Carlton would say so much about how this globally renowned hospitality brand believes in the country’s growth story. This planned expansion is targeted to bring to 25 the total number of Marriott hotels in the Philippines by the end of 2024.
“The Philippines is a great story for us. It’s a great market. We’ve seen a tremendous growth,” said Craig S. Smith, president and managing director of Marriott International Asia Pacific.
“In the last five years, we’ve seen a huge (increase in our occupancy). It’s wonderful to see that you have more international travelers coming in, and more infrastructure being built to allow for all these things to happen. And because of that, we’re also growing fast. We’re very bullish about the Philippines right now,” Smith said during his visit to Manila earlier this week.
Expanding footprint
Four Marriott hotels are currently open in the Philippines namely, Manila Marriott Hotel and Sheraton Manila Hotel, both of which are located within the Resorts World Complex in Pasay City; Courtyard by Marriott Iloilo; and Clark Marriott Hotel in Pampanga. Fourteen deals were already signed and the hotels under these are currently under construction. Marriott expects to close seven more deals by yearend.
Currently operating in three destinations, Marriott International during the same period expects to also debut in five new destinations namely Caticlan, Cebu, Davao, Mactan and Palawan, as hotel owners and developers build new hotels and convert existing ones to its leading brands.
Smith revealed that they are excited about their planned hotels in Caticlan which will be developed by the San Miguel Group: the Marriott Resort & Spa Caticlan and Courtyard by Marriott Caticlan, both of which are slated to open by 2021. That’s because the hotels will rise within a well masterplanned integrated resort which will also feature a world-class water park. Other new brands that travelers can look forward to include the wellness-centric Westin brand with the opening in 2021 of The Westin Manila Sonata Place, which is being developed by Robinsons Land; and the eco-conscious Element brand with the opening of Element Palawan Puerto Princesa in 2024.
Craig S. Smith talks about Marriott’s aggressive expansion in the Philippines.
Interesting market
According to Smith, the Philippines is an interesting market for Marriott, given the stellar performance of Manila Marriott Hotel over the past decade. He credits the “incredible partnership” they have, the sustained economic growth of the country, and the rising tourist arrivals, particularly those coming from China. These are also the reasons why he thinks the Philippines is ready for premium, luxury brands like Ritz Carlton.
“We’re also starting to see clients becoming more choosy. There’s more wealth in Asia now. Travelers are becoming more sophisticated and so they are looking for more sophisticated experiences. And it’s not just the wealthy, but we also have the upper middle class who would save money because they want to stay in that special hotel,” Smith explained.
Smith further noted that today’s travelers are now all about experiences—for which the Philippines has a unique considerable advantage given the diversity in terms of language, culture and cuisine. Add to that, the more than 7,000 islands which can offer different experiences and thrilling adventures that could greatly exceed the expectation of any traveler, whether local or foreign.
Meanwhile, Smith also disclosed that apart from new-build hotels, conversions continue to be a key strategy in strengthening Marriott International’s footprint in the Philippines, such as the Sheraton Manila Bay expected to open later this year. The rebranding plan by the owners includes a major renovation of the hotel’s lobby area and the creation of a new executive lounge and fitness center. Additional conversion deals include the debut of the Four Points brand with the opening of Four Points Palawan Sabang Beach anticipated in 2020 following an $8-million renovation by the owners; and the legendary Ritz-Carlton brand targeted to debut in Philippines in 2021 with the opening of The Ritz-Carlton, Manila.
“The amazing growth we’re seeing in the Philippines is testament to Marriott’s strength in and commitment to the market, coupled by a rapidly growing economy. We look forward to bringing new hotels to the Philippines together with our trusted hotel owners, enabling more choices with unsurpassed experiences for our travelers,” Smith added.