Filinvest forecasts 12% hotel growth

Amid a lackluster hotel sector, a high-ranking official of Chroma Hospitality Group (Chroma), the hospitality management arm of the Gotianun-led Filinvest Development Corp. (FDC), sees a 12 percent growth this year.

“Despite uncertainty in the global markets and the slowdown in expenditure, maybe due to the coming elections, for us in Chroma, we still have something to be thankful for because we are still seeing a 12 percent year-on-year growth in revenue. We are slightly below budget, but it’s not below the 10 percent level, so it’s still fairly good,” Alan James Montenegro, country manager of Chroma, the overseer of known hotel brands, namely Crimson Hotel and Resorts, Quest Hotels, Grafik Hotels and Resorts and Timberland Highland Resort, said.

In terms of profitability, Montenegro said the company is confident of a double-digit growth in 2025.

“This is because we managed to curtail some expenses and have tighter control of costs as well. That helped us a lot, so the first quarter is fairly positive, which is driven by proper cost management and strong domestic business,” he said.

In terms of overall tourist arrivals and occupancy, Montenegro said the performance is almost flat: “But it is driven by our growth in our average daily rate (ADR).”

“We managed to increase our ADR by about 10 to 15 percent across our properties. And we can only attribute this to the good quality of service we provide, which is why there is no resistance to our rate. Over the last years, we have focused on increasing our customer value proposition. So even though there is a little bit of a dip in the tourism arrivals, the impact has not been as drastic as in other areas in the country because we still managed to see a significant growth in the ADR,” he explained.

Data from the Department of Tourism said that in 2024, 5.949 million foreign travelers set foot in the country, of which 91.42 percent were predominantly foreigners, who account for 5.438 million, while the remaining 8.58 percent, or 510,383, were Filipinos living overseas.

Montenegro said they presume double-digit growth as they see a steadier economy this year compared to 2024, when everything was volatile, with the inflation rate at its worst, accompanied by high fuel prices.

“And because of last year’s volatility and the pricing and inflation, when we did our numbers for this year, it already has a certain amount of cushion, so that helped us as well in managing the inflation this year. Despite the high prices of utilities, basic commodities, rice, all of those things, we still managed to increase our rate substantially, which kind of managed inflationary cost increase,” he explained.

New hotels

Meanwhile, Montenegro said FDC is unveiling the Grafik Hotel in Camp John Hay, Baguio City, the group’s eighth hotel this year.

He also said FDC will begin construction of the 326-room Crimson Hotel in Clark, which is set to begin in the third quarter of 2025.

“That is right beside our Quest Hotel Clark. And then, if everything goes okay, maybe early next year, we should start our Grafik Hotel in Duawon, Cebu. This is apart from our Moalboal Grafik Hotel, which has already been constructed and is under a third-party contract, and is hoping to be opened by 2027. So, footprint-wise, by the end of 2027, we should have about 12 to 15 hotels ready, or almost a 50 percent growth of our portfolio,” he told the DAILY TRIBUNE.

Montenegro said that he is currently helping the local government of Ozamis City, Misamis Occidental, develop a tourism destination and erase a past negative image that resulted in very little infrastructure, tourism activities, and retail and real estate business.

“So, the governor asked for our help to build a 300-room property in a reserve area that has access to the old dolphin island. It’s a swamp property. They are setting the soft opening for November, and hopefully, will open certain villas by the middle of the year. We are just helping them to put all the infrastructure together, the design of the rooms, everything. We are helping them through the process to get their facility up to a certain standard, and it’s up to them what brand they will use,” according to Montenegro.

To date, Chroma, which started operating in 2015, has created 2,500 hotel jobs in its diverse portfolio of hotel and restaurant brands, offering unparalleled experiences.

Last month, Chroma’s Crimson Resort and Spa Mactan, Quest Hotel and Conference Center Cebu, and Quest Plus Conference Center Clark have each been awarded the Good Travel Seal accreditation, a globally recognized certification from Green Destinations. This milestone reflects Chroma’s commitment to sustainable tourism, community upliftment, and ethical governance across its portfolio.