Radisson's Philippine Power Play: A Strategic Bet on Growth and Scale

MANILA, PHILIPPINES – December 15, 2025 – In a decisive move signaling deep confidence in the Philippine market, Radisson Hotel Group has solidified a partnership with local conglomerate SM Hotels and Conventions Corporation (SMHCC) to develop three new properties. The deal, which introduces a strategic dual-branded hotel complex in the bustling SM Mall of Asia district and expands the group’s footprint into the high-growth city of Santa Rosa, is more than just an addition of rooms; it's a calculated investment in the Philippines' burgeoning economic and tourism resurgence.

This expansion adds a significant 700 rooms to Radisson's pipeline and reinforces a long-standing alliance that is becoming a powerful force in shaping the nation's hospitality landscape. For investors and market watchers, this move offers a clear window into how global hospitality giants are leveraging local partnerships and integrated development models to capture growth in one of Southeast Asia’s most dynamic economies.

A Partnership Built on Integrated Real Estate

The foundation of this expansion is the deeply synergistic relationship between Radisson Hotel Group and SMHCC, the hospitality arm of the massive SM Prime Holdings. This is not a new alliance; the partnership has been active for 15 years, since the opening of Radisson Blu Hotel Cebu. What this new agreement represents is a significant deepening of that commitment, leveraging SMHCC’s unparalleled expertise in creating integrated, high-traffic destinations.

SMHCC’s strategy is clear: embed hospitality within its sprawling network of retail, commercial, and entertainment hubs. By co-locating hotels with its flagship SM Malls and SMX Convention Centers, the company creates self-sustaining ecosystems that drive demand. Ms. Peggy Angeles, SM Hotels & Conventions Corporation Executive Vice President, noted the strategic intent behind the new properties, stating they "are purposefully designed to meet the evolving needs of business, leisure, and MICE travelers." Her emphasis on creating "integrated destinations that drive tourism, enrich communities, and contribute to national economic growth" underscores a vision that extends beyond mere property development to nation-building.

For Radisson, this partnership provides access to what Ramzy Fenianos, Chief Development Officer for Asia Pacific, calls "high-conviction locations." Instead of speculating on standalone sites, Radisson is plugging its brands directly into established and future demand generators, mitigating risk and ensuring a steady flow of guests from the adjacent malls, convention centers, and entertainment arenas.

Capitalizing on a Resurgent Hospitality Market

Radisson and SMHCC’s investment is timed to perfection, aligning with the robust recovery and projected boom of the Philippine tourism and hospitality sector. After a period of global slowdown, the country's market is showing formidable strength. Industry forecasts project the tourism sector will contribute a record PHP 5.9 trillion to the national economy in 2025, with international visitor spending expected to surpass pre-pandemic peaks.

In Metro Manila, the epicenter of this growth, hotel performance metrics are exceptionally strong. Overall hotel occupancy climbed to 83.2% in the final quarter of 2024, with average room rates steadily increasing. This demand is fueled by a potent mix of corporate travel, a thriving domestic tourism market, and a resurgent MICE (Meetings, Incentives, Conferences, and Exhibitions) sector. The government's "Build Better More" infrastructure program, which is pouring billions into improving airports, roads, and connectivity, further de-risks large-scale private investments like these.

The new hotels are poised to directly absorb this rising demand. With an estimated 2,300 new rooms expected to enter the Metro Manila market by 2029, the majority managed by foreign operators, Radisson's move ensures it captures a significant share of this growth wave in one of the city’s most commercially vibrant districts.

A Dual-Pronged Strategy: Urban Dominance and Regional Growth

The strategic brilliance of the deal lies in its two-pronged approach, targeting both the dense urban core of Metro Manila and an emerging regional hub.

At the 67-hectare SM Mall of Asia Complex, the plan to build a dual-branded property is a masterstroke in market segmentation. The 200-room Radisson Hotel SM Mall of Asia Manila will cater to the upscale market with premium amenities, including a specialty rooftop bar and a massive 2,160-square-meter ballroom. Operating within the same complex, the 300-room Park Inn by Radisson SM Mall of Asia Manila will serve the midscale segment, offering a more accessible but equally high-quality option. This dual-brand model allows the complex to cater to a broad spectrum of guests—from large corporate delegations and international event attendees to families and leisure travelers—all while achieving operational synergies. The timing is critical, with the new SMXCITE convention venue set to open nearby by 2027, promising to host events for up to 20,000 attendees and creating immense demand for accommodation.

Simultaneously, the 200-room Park Inn by Radisson in Santa Rosa, Laguna, marks a strategic push beyond the capital. Located about 45 minutes from Manila, Santa Rosa is a rapidly industrializing city and a key commercial center in the Greater Manila area. The hotel will be a core component of the new SM Neo Verde mixed-use development, which will feature a mall and a new central bus terminal. This move demonstrates an astute understanding of decentralization trends, capturing the growing business and leisure travel demand in secondary cities and positioning Radisson at the heart of the region's future growth.

A Key Piece in a Larger Asia-Pacific Puzzle

While monumental for the Philippines, these signings are also a critical component of Radisson Hotel Group’s aggressive Asia-Pacific expansion plan. The group has publicly stated its ambition to quadruple its portfolio in the region by 2025, growing from 400 to over 2,000 properties. Within this grand strategy, the Philippines has been identified as a "priority market" and a "strategic engine" for growth.

The partnership with SMHCC is the vehicle for this ambition. As Mr. Fenianos commented, "We are proud to expand with our trusted partner SM Hotels and Conventions Corporation (SMHCC) in the Philippines, a market where we see sustained demand across segments and real momentum for quality conversions and new builds." This sentiment reflects a broader strategy of forming deep alliances with dominant local players who possess invaluable market knowledge and real estate access.

By deploying a multi-brand strategy—from the upscale Radisson to the midscale Park Inn by Radisson—the group can flexibly adapt to different market needs and owner profiles across the archipelago. This expansion, adding over 3,000 keys to its development pipeline in the country, solidifies Radisson's position as a major player and signals to the market that its investment in the Philippines is not just opportunistic, but a core part of its long-term global vision.