Hotel operators are accelerating development across the Visayas and Mindanao, with multiple projects slated for completion by 2029. The expansion reflects confidence in sustained domestic tourism and improving occupancy rates despite a shortfall in international arrivals.
Domestic travel has emerged as the primary catalyst for the region’s hospitality sector. Occupancy levels in provincial markets have risen sharply, recovering from pandemic lows that once lingered between 10% and 40%.
International visitor arrivals reached 5.87 million in 2025, falling below the government’s target for the year. The gap underscores the sector’s reliance on internal demand to drive growth.
Tourism expenditure by domestic travelers grew 3% in 2025, while the number of overnight visitors climbed to 63.9 million in 2024 from 55.3 million the previous year. These figures have bolstered hotel performance across the islands.
Cebu remained the leading destination for overnight travelers, attracting 5.1 million visitors in 2024. Occupancy rates in Iloilo and Bacolod rose to 70% in 2025, indicating robust demand in secondary hubs.
Developers are advancing several large‑scale hotels in the Visayas, including a 548‑room property in Cebu‑Mactan, a 516‑room Park Inn on Cebu’s South Road Properties, and a 228‑room Kingsford Hotel in Bacolod. These projects aim to capture the growing market share.
Cagayan de Oro is emerging as a high‑growth market, matching Iloilo’s occupancy levels in 2025 and ranking tenth nationwide with 1.8 million overnight visitors in 2024. The city’s pipeline features a 717‑room Radisson Blu, a 196‑room Citadines, and a 180‑room Dusit Princess Firenze.
Davao del Sur ranked sixth nationally for overnight travelers, recording 2.2 million visitors in 2024. Hotel occupancy in the province approached 60% in 2025, prompting developers to add 250 rooms at a new Citadines property and a 100‑room Tryp by Wyndham in Samal.
The tourism authority is targeting 6.7 million foreign arrivals in 2026. Even with softer international traffic, the combination of strong domestic travel and rising occupancy continues to underpin investment confidence across the Visayas and Mindanao.
