Luxury hospitality seen as growth niche for Philippine developers

PROPERTY CONSULTANTS said residential oversupply could push more Philippine developers to pursue luxury hospitality projects.

- By Beatriz Marie D. Cruz

“With over 7,000 islands, it has all the ingredients, but it seems that Philippine hotel developers are conservative,” Bill Barnett, founder and managing director of Thailand-based hospitality consulting group C9 Hotelworks, said in an interview with Business World.

Mr. Barnett, who has served as a consultant for various hotel and residential developments across the Asia-Pacific, said many of the Philippines' hotels and resorts are “family-run, so they tend to look at the industry and do what their friends do.”

“If somebody does one thing, they all do it,” he added.

Mr. Barnett also noted that some hospitality developers tend to be “commodity minded.”

“Meaning, they think more is better. More rooms, more things... You can't commoditize luxury because somebody else can come in and lower their prices,” he added.

He also noted the oversupply of condominium units in Metro Manila would prompt developers to shift to the luxury segment.