Cebu hotels struggle with low occupancy amid supply glut

Cebu's hotel market is under mounting strain, with occupancy rates lagging well behind the rest of the country as new supply floods the market faster than demand can keep pace.

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According to Leechiu Property Consultants, average occupancy in Cebu City and Mactan has fallen to just 55 percent — markedly lower than the 65 percent recorded in Metro Manila and well adrift of pre-pandemic levels.

The national average stands at 60 percent.

"What we're seeing in Cebu is particularly difficult," said Alfred Lay, director for hotels, tourism and leisure at Leechiu.

"Room rates are depressed, and new supply is coming in faster than demand can catch up," Lay said during the recently held 2025 Midyear Property Update, jointly hosted by Cebu Chamber of Commerce and Industry (CCCI) and Hotel Resort and Restaurant Association of Cebu (HRRAC) held at Bai Hotel Cebu.